The significance of Mr Abe

A little over five years ago, India’s moribund and sometimes distant relations with Japan got a dramatic boost when that country’s visiting prime minister, Shinzo Abe, told India’s Parliament that he looked forward to a “confluence of the two seas” (the Indian and Pacific oceans), and a “broader Asia” that would create “an arc of freedom and prosperity”. Mr Abe declared that Japan had “rediscovered India as a partner that shares the same values and interests”. His strategic vision included Australia and the United States, with which India and Japan launched what was called a “Quadrilateral initiative” that included joint military exercises. The exclusion of China from this “concert of powers” was self-evident, and Beijing protested strongly against the birth of what it called an “Asian Nato”. In the event, Mr Abe was forced by ill-health and political circumstances to step down as prime minister in less than a month of his speech in New Delhi, and the Chinese protests ensured that the Quadrilateral initiative was quietly dropped after Australia developed cold feet.

Five years later, Mr Abe is back as prime minister, having campaigned on a typically nationalistic platform. Japan and China have crossed swords over some uninhabited islands in the East China Sea, and when anti-Japanese feelings have been drummed up on the Chinese mainland. Mr Abe’s response has been to call for a freer role for Japan’s self-defence forces. Economically too, Mr Abe’s strong policy line calls for reflating the Japanese economy so that it manages better growth. It is of course in Mr Abe’s interest to seek a sensible modus vivendi with China, which since 2007 has emerged as an even more powerful system, and a bigger economy than Japan. That should not come in the way of Mr Abe reviving his bid to forge much closer ties with the leading democracies in the region, as forces of stability in a region with rising tensions.
Mr Abe’s India visit resulted in much greater Japanese engagement with India’s development plans, and the financing of major infrastructure development projects.

What is needed now is more direct engagement by Japan’s leading companies, not all of which have been enthusiastic about India. The fact is that Japan and India are, after China, the largest economies in Asia, and the degree of mutual economic engagement should reflect that reality. Yet bilateral trade last year was no more than $12 billion — a small fraction of Sino-Indian trade. Trade with Japan is expected to double in three years, now that the Comprehensive Economic Partnership Agreement has been signed, but it is also true that the tariff cuts envisaged under the agreement will be dragged out over a decade. It is clear that India too needs to get its act together, and become more competitive, in order to expand bilateral ties.

Hope for Indo-Japanese ties under Abe

The return of Shinzo Abe as Prime Minister of Japan five years after the end of an year-long stint bodes well for India. In his previous term as prime minister in 2006-07, Abe was well disposed towards India and had even visited this country and addressed the Indian Parliament. He has returned at a time when Japan’s effective control of  Senkaku islands in the South China Sea is being challenged by China which claims the islands as its own. China also lays claim to the island chain which it calls the Diaoyu which Japan regards as its own.

 In that context, Abe sees the need for a strategic partnership with the US which he is keen to extend to India and Australia as a counterpoise to China’s hegemonistic designs. With India itself embroiled in a territorial dispute with China over Arunachal Pradesh and some other areas, a strategic alliance will ensure that New Delhi is not isolated in the event of a Chinese attempt to browbeat her. A strategic partnership with India is not only in the interest of both the countries but also for the peace and prosperity of the region.
Addressing the Indian Parliament in 2007, Abe had carefully articulated that the Indian and Pacific countries were seamlessly connected and that ‘when we build a community in Asia, maritime democracies should lead the pack’. He was instrumental in Japan providing support for the western dedicated freight rail corridor and the conceptualisation of the Delhi-Mumbai industrial corridor. 

Similar help can now be expected from Japan for developing an industrial corridor on the Chennai-Bangalore-Hyderabad route and the introduction of a high-speed Shinkansen train between Mumbai and Ahmedabad. Without significant international financial and technical assistance, neither of these capital-intensive projects is feasible. Eager to kick-start its own economy in the process, Japan seems India’s best bet for creating such infrastructure.

Minister calls for paradigm shift in India-Japan relations

As globalisation results in greater interdependence strategically and economically, the relationship India shares with Japan is a much prized one. As we celebrate 60 years of diplomatic relations between our two great nations, Observer Research Foundation and the Japanese Embassy in New Delhi hosted a seminar titled "India-Japan Bilateral Portrayals: Mutual Perception and Image Formation"on December 6, 2012.

The keynote speaker, Honourable Minister of Information and Broadcasting, Mr. Manish Tewari, called for revisiting the parameters of India-Japan relationship, saying the relationship should move beyond ODA (overseas development assistance) to co-creation. He said Japan and India can collaborate and promote technological innovation, as well as cooperating in the IT and Pharmaceutical industries.

The Minister said there was a "great creative potential"for both the countries, and the steps like establishment of the Mumbai-Delhi corridor and the proposed Bangalore-Chennai-Mumbai corridor are steps in the right direction.

Noting that "Indo-Pacific is a reality today"and Japan is "a neighbour of sorts", the Minister said that there is a need to "move out of the existing paradigms and basing of industries".

The Minister said the paradigm should be shifted to areas like joint industrial development, making use of the advantages of both the countries - investment and technology of Japan and the demographic advantage of India.

The Minister also stressed on the need to move towards multi-lateral paradigms to leverage peace and stability not only in the region but also in the world.

He said we should also focus on two-way traffic of inter-polation of ideas with greater and robust trajectory and use the power of ideas for a stable and peaceful world. Japanese Ambassador Takeshi Yagi agreed with the Minister that Japan and India should work for ensuring stability and peace in the India-Pacific as well as the world. Stressing the need for further strengthening the relationship, the Ambassador said he was sure that the bilateral relationship will remain unchanged though the country is going to polls in the next 10 days and a new government will come to power.

The Ambassador noted that the FDI from Japan has become ten-fold while India has also become the 4th largest ODA recipient.

Mr. Vikram Sood, Vice President of the ORF Centre for International Relations, said though the bilateral relations now have enlarged into a strategic partnership since 2000, there is still scope for widening cooperation - like in the field of civil nuclear cooperation.

The whole-day seminar had two sessions - one on "National portrayals: Reflection in the history and its evolution"and another on "People’s images: Lively impressions in businesses and media.

Prior to the opening of the first session, the moderator, former Indian Ambassador to Japan, Arjun Asrani, exclaimed that the India-Japan relationship has bipartisan support across party lines, in both nations. The first presentation was made by Dr. Chiharu Takenaka who gave us a historical overview of Japanese perceptions of India. She commented on the joint opening of trade routes between Mumbai and Tokyo through the pioneering efforts of the industrialists Jamshedji Tata and Eiichi Shibusawa. India also opted for an independent peace treaty with Japan in 1952, deeming the US sponsored San Francisco Peace Treaty to be unfair on Japan. Dr. Takenaka also recalled a historical event, when Prime Minister Jawaharlal Nehru sent an elephant to Japan, due to the death of the elephant in the Tokyo Zoo. This so called ’elephant diplomacy’ contributed to the familiarity that the Japanese people feel with India.

The second presentation was made by Professor Janashruti Chandra who spoke on the portrayal of Japan in Indian textbooks as well as the converse portrayal of India in Japanese textbooks. She informed the audience that several references are made not only to Japan’s technological advancements but also to their promotion of humanistic values, aesthetics and literature. Stressing the need for positive portrayals on both sides, she also commented on the shared values that have been preserved in Indian and Japanese society such as respect for elders and courtesy.

The third presentation was made by Professor Takenori Horimoto who lamented that the first phase of bilateral relations was characterised by divergent agendas. Whilst Japan pursued an open economy and a nuclear energy programme under the aegis of the United States, India preferred a closed economic model, and was diplomatically non-aligned; this divergence was also seen in the fact that there were infrequent high-level visits between the two. However, following India’s economic reforms in 1991, there has been a convergence of mutual interests between the two nations, opening the door to Japanese investment as India strives to increase its economic capacity. An increase in trade and investment has seen an upturn in top level dignitaries visiting each other, with 61 visits in the last decade. He also claimed that no negative historical baggage exists between the two; nor is there a threat of armed engagement paving the way for a healthy relationship for decades to come.

Professor K.V Kesavan spoke on the changing diplomatic image of Japan in India, gave the fourth presentation of the first session. India’s attitude towards the inequality of the San Francisco Peace Treaty also influences countries such as Indonesia and Burma, helping Japan normalise its relationship with the nations of the S.E.Asia. Following India’s nuclear tests at Pokhran the relationship suffered a few hiccups, however in 2000 Japanese Prime Minister Yoshiro Mori’s visit allowed Japan to look beyond nuclear scepticism and pursue its relationship with India as a part of a greater regional context. He also noted Japan’s aid to Indian infrastructure with significant contributions in ambitious projects such as the Delhi-Metro and the Delhi- Mumbai Industrial Corridor, stressing that despite an overall decline in Japanese aid, assistance to India is rising. The second session began following a break for a lunch with a presentation by Mr. Go Yamada who spoke on the evolving strategies of Japanese Companies in India. He informed the audience that over 300 Japanese companies have set up new offices, joint ventures and factories in India, expanding their base to include states such as Maharashtra, Karnataka and Gujarat. He understood that challenges exist due to issues such as land acquisition which has proven to be problematic in the past, but stressed the need to cooperate with the Indian government through Private Public Partnership (PPP) which would enable the establishment of a base for manufacturing and Research& Development.

The second presentation too was made by Mr. Yamada on behalf of Mr. Teddy Takeuchi, who unfortunately could not attend the seminar. Mr. Takeuchi’s presentation was on the trends of Japanese media on India, where he asserted how Japanese media has noted India’s large scale modernization witnessed by the mushrooming of shopping malls in important urban centres. In India more than 10 Japanese newspapers or agencies maintain an office in New Delhi and Mumbai, however there are no major Indian news corporations, suggesting ’one way traffic’ due to this limited presence.

These fears were addressed in the third presentation of the session, by Mr. Pramitpal Chaudhry, who informed the audience of the fragmented nature of Indian media. There are 80,000 registered providers of news, with over 300 TV news channels. However, English news only covers 4% of this vast viewership. The internet too has changed the media paradigm, especially on the nature of revenue. In order for companies to stay afloat they must keep the ratings high, and to do that they must keep information to be India centric. International information is often limited to only a few pages in the print media, and tends to be focussed on the United States, China and Pakistan which form the bulk of the interest of a majority of Indian readers. Japan itself does come into the top ten nations along with Canada and Australia, with issues related to immigration and education being the most common association made by Indian readers. He also informed the audience that in a Pew Research Centre Survey "Indian positive attitudes towards Japan are the highest amongst 4 other nations polled."Additionally he claimed that for the Hindustan Times, there are no foreign correspondents on the Eurasian landmass due to the substantial expenditure that is required to maintain the same.

The final presentation for the day was made by Mr. Anjan Roy, who presented on the changing image of Japan in the Indian business field. Japan had a huge lead in investment into India when it was still a protected economy. Since India’s new economic scenario, the presence of Japanese companies has been extremely pervasive into several different sectors of the Indian economy. He hailed the Japanese commitment to developing India’s infrastructural capacity. Additionally he remarked on the backlash witnessed by Japanese corporations located in China following the Senkaku Islands Conflict. This may be incentive for more Japanese companies to shift their presence to India. He also commented on India as being a hub for manufacturing and exporting Japanese goods to newer markets. Major corporations such as Suzuki, Honda, Toyota, Daiichi-Sanyo, Panasonic and Daikin use India as a base to export to African markets in nations such as Morocco and Nigeria.

The event drew to a close, as Former Ambassador to Japan, Mr. H.K Singh, who moderated the second session, gave the concluding remarks. He asserted the need to promote more people to people interaction as well as increasing partnerships between Japanese companies and Indian companies.

Toyota India undertakes major organization reshuffle

 From January 1, 2013 a new set up has been formulated by Toyota Kirloskar Motors, a subsidiary of Toyota Motors Japan, which will enable the company to take quick and timely decisions. This major organizational restructuring will involve Shekhar Viswanathan who has been promoted to Vice Chairman – External Affairs.

Sandeep Singh, currently occupying the post of Deputy Manager – Sales, Marketing and Customer Service has been promoted to Deputy Managing Director and COO.  He will head sales, marketing and customer service along with commercial divisions in his new capacity.
Masanori Takahashi, present Deputy Managing Director – Technical and Purchase has been promoted to Deputy MD and COO and will be heading manufacturing, technical, purchase and vendor development from 1st January 2013. These office bearers will also continue to hold positions on the Toyota Kirloskar Board of Directors, while Shigeru Tomonaga, who as on date holds post of Deputy MD – manufacturing, will be posted to a new role of Executive Advisor to TKM Board of Directors and Chief of Supplier Support Center. For more information, scroll down.

Auto News Release
Toyota Kirloskar Motor Announces its New Organisation Structure
New Delhi, December 26, 2012: Toyota Kirloskar Motor Limited (TKM) announced its New Organisational Structure. The proposed changes, which will come to effect from 1 Jan 2013, were earlier announced by Mr. Hiroshi Nakagawa, Managing Director and Chief Executive Officer, TKM.
The main objectives of these changes are to strengthen the organization towards achieving TKM's vision and further enhance speed of decision making.
Mr. Shekar Viswanathan, Deputy Managing Director, Commercial, has been promoted to the post of Vice Chairman, External Affairs.

Mr. Sandeep Singh, Deputy Managing Director, Sales, Marketing and Customer Service, has been promoted to the post of Deputy Managing Director and Chief Operating Officer. In his new role, he will head Sales, Marketing, Customer Service and Commercial Divisions.
Mr. Masanori Takahashi, Deputy Managing Director, Technical and Purchase, has been promoted to the post of Deputy Managing Director and Chief Operating Officer. In his new role he will head Manufacturing, Technical, Purchase and Vendor Development including supplier support.

All the above mentioned executives will continue to hold positions in the company's Board of Directors.
Mr. Shigeru Tomonaga, currently holding the post of Deputy Managing Director, Manufacturing will be an Executive Advisor to the TKM Board of Directors and Chief of Supplier Support Center.
Commenting on the revised structure of the organization Mr. Hiroshi Nakagawa, Managing Director and Chief Executive Officer, TKM, said "As we expand our operations in India, we need our team to take up new roles and responsibilities. I wish my colleagues the best for their new endeavors."

Pharma just can’t crack Japan code

Japan, the second-biggest pharmaceutical market in the world, remains the toughest to crack for India’s generic drug makers.
Despite several attempts to go beyond beachhead-level operations over the past few years, companies haven’t made much headway.
“Apart from the language barrier, the stringency in the regulations for supplying our products directly or even have partnerships in Japan is a deal spoiler. The size of the market there is sure a big lure, but it’s not a low-hanging fruit,” a senior official of a pharma company which exports to the US and Europe said. This person did not want to be named.

Medicines worth about $70 billion (Rs3.82 lakh crore) are sold every year in Japan, with prescription drugs constituting about 7% of sales.
Local majors such as Ranbaxy, Dr Reddy’s, Lupin and Zydus Cadila have all been priming themselves for the expected boost to generics in Japan.
“The basic problem is with product approvals. The Japanese regulator requires bioequivalence tests to be conducted inside Japan. There have been efforts to explain to them that even the US and Europe allow them to be conducted in India or elsewhere. But the authorities have their own set of rules,” said another senior pharma official.

“Doing those tests costs Rs5-10 crore or more. And we are not even certain of getting an order,” this
person said.
Generics now constitute about 20% of the total pharma sales in Japan. This is seen rising to about 30% in a year and 50% in phased manner – that’s a market size of $35 billion or Rs1.92 lakh crore.
In comparison, India’s pharma sector tots up revenues of $22 billion, including exports.
The Indian government is doing its bit to ease the way.
“The government has a vision to improve our exports to Japan. However, the Japanese understanding of Indian pharma is not that good compared with the US and Europe. We launched the Brand India Pharma project in March 2012 in Japan,” P V Appaji, director general of the Pharmaceuticals Export Promotion Council, a government of India initiative, told DNA Money.
“We are in touch with generic associations there. There have been several enquiries to Indian companies. Now, the interest level is increasing. We also organised the visit of Japanese journalists to pharma facilities in India. It was an eye-opener for the senior editors who said they did not have such information about India’s pharma sector till then,” Appaji said.

The industry was expecting the big opportunities after India signed the Comprehensive Economic Partnership Agreement (Cepa) with Japan recently, but that hasn’t happened so far.
“Japan has agreed to give equal treatment to Indian products after signing of Cepa recently. Even now, it is not that they are not treating us equally. The fact is the conditions in Japan are rigid. We are trying to educate our people. We are translating information into local language about product registration. We are hopeful that the efforts will bear fruit shortly,” Appaji said.

Timed with the sun

Citizen’s Eco-Drive watches are a big hit in India. How environment-friendly are these watches?
Eco-Drive is a light-powered watch. Its battery runs purely on light produced from any source, be it candle light or direct rays from the sun. When fully charged, the watch can run on this energy for approximately six months or longer, depending on the model. Such advanced technology in using light, both natural and artificial, has really captivated watch enthusiasts and made Citizen’s Eco-Drive a big hit.
Katsusuke Tokura, managing director, Citizen Watches India, talks about the technology and the aesthetic elements of the Eco-Drive timepieces.

In a growing market like India, competition is fierce, not just from local players but also global players. What strategies do you have in place to tackle your competitors?
Citizen set up operations in India in 1997. It has a 15-year-old brand history in the subcontinent. So the marketing and sales strategies are also unique for India. We are very clear about the demographics of the customers that we want to target. Our typical customer is the emerging upper middle class working in the IT or ITES segment. They are young, willing to try out innovations in watches, most of all, they are discerning customers who know the tasteful fusion of technology and beauty.

Citizen is a Japanese brand. The name is easy to remember and anybody in any country can relate to the brand. While that works for India too, the attitude of Indian customers customers does differ, as they are more price conscious. How are you tackling this challenge?
It’s not just in India that customers are price-conscious. Even in Japan, people are. That’s precisely why we have placed Citizen watches in the affordable luxury segment. The price range is nominal for our target audience. They range between `10,000 and `50,000. We make sure that we give our customers value-for money watches. The watch would truly represent their personality and status. By blending cutting-edge technology like super titanium and innovative designs, we have managed to capture the hearts of our customers. In fact, the world’s first Altimeter Depth meter Titanium professional diving watch is from Citizen.

Citizen has been in the country for over 15 years now. How has the customer evolved? Have you noticed any interesting trends in the past few years?
A lot of Swiss watches have made inroads into the Indian market and there are more takers in India these days for such brands. People have begun to appreciate and understand technology, so it becomes a lot more easier for them to pick and choose the watch they want. A few years ago, watches were primarily timekeeping devices, but today they are a style statement.

When compared to the rest of the country, how different are customers in Bangalore?
Bangalore customers are more intelligent and they are aware of the recent technological advancements. Moreover, when they see a good product, they are willing to spend on it.

Gitanjali Gems Investment in Japan : FairWealth Institutional Research

Aston Luxury Group Ltd, a fully owned subsidiary of GGL has acquired a 15.3% stake in Verite Co. Ltd in Japan. Verite Co. has 101 jewellery retail stores in Japan. This acquisition will open the Japanese market to GGL, enabling it to establish itself as one of the major jewellery brands in the world. Last year, GGL acquired a 30% stake in Gems TV which is a Japanese jewellery selling TV Channel.
Innovation in jewellery and expertise in diamond market:

Gitanjali has launched the world's first jewellery automated vending machine in Mumbai, where coins and jewellery can be bought. GGL has always been a pioneer. The company has launched brands with unique characteristics linked to occasions and demographics and has adopted aggressive marketing strategies for effectively positioning each of these brands. The brand visibility of each of Gitanjali's brands is strong and is supported by endorsements by top celebrities. It has employed tools such as Quick response Codes and E-commerce platforms to widen its reach.

Impressive performance across many quarters:
The second quarter result of GGL was quite impressive with net sales soaring up by 32.2% while tax outgo was curtailed by 34%. Net Profit grew 14.7% to `153 cr. The Net sales grew at a CAGR of 38% from FY10 to FY12 while Net profit grew at an impressive 56% over the same time period. Third quarter results are expected to boom as the jewellery sales skyrocket during the festive and marriage seasons. Hence, we can expect even better numbers for the coming quarters which will boost the valuation. Going ahead, we expect performance to get better as international operations achieve scale.

Favourable Policies will keep the sector booming: Government of India allows 100% FDI in the gems and jewellery sector, 74% FDI in mining of diamonds and precious stones and 100% FDI in exploration of gold, silver and other precious items. Foreign Trade Policy has been revised in 2009 and it has made import and transportation clauses more liberal and succinct in an effort to make India an international hub for diamonds and jewellery.

Sound Fundamentals:
Debt to Equity ratio of the company is at a comfortable level of 1.24 and the company plans to keep it below the level of 1.5. RoNW has been on an uptrend over last 4 years and has grown from 7.63% in 2009 to 17.07% in FY12. The employee expenses shot up by 17% while Total Income grew by 32.4% suggesting operational efficiency of the company.

Valuations and Outlook:
Gitanjali Gems has a robust business model and strong margin performance. This expected to stimulate high valuations. The jewellery sector is one of the fastest growing sectors in the country with an annual growth rate of ~20% which is expected to be maintained for the next few years. Gitanjali's brands are among the biggest in the country in terms of market share. The management is focused on aggressively promoting these brands and expanding stores. The company has a strong presence in dominant global jewellery markets resulting in a well balanced diversified geographic presence.

At CMP of ` 484.7, GGL is trading at 8.4x TTM EPS and at 1.7x BV which is highly discounted when compared to Titan Industries (trading at 35.2x EPS and 17.7x BV) and TBZ (28.8xEPS and 5.32x BV).GGL is trading at pretty cheap valuation compared to its peer group and considering the strong fundamentals of the company it should spring up to 12x EPS in the medium term. Hence we recommend a BUY rating for the stock with a target price of ` 680 in 12 months.

‘India is self-sufficient’

The Japanese Ambassador to India, Takeshi Yagi, is full of hopes about the ties between the two countries and its future.
He took over as the Ambassador in October this year. Yagi, who is relatively new to the country, says that India has done well for itself and is not dependant on any country for anything.

“We are working on various things together, the current projects are the Chennai-Bangalore industrial corridor. This consists of many projects and is a master plan. We will also assist in the construction of the second phase of the Bangalore Metro project. Preliminary studies have begun for the high-speed train project between Bangalore and Chennai and extended areas. We are trying to extend it to the west and east coast of India,” explains Yagi.

He goes on to say that in the economic field, the number of Japanese companies operating in India has increased rapidly over the past few years, making Japan the fourth largest foreign investor in India.

“As part of our economic cooperation, we are actively participating in important infrastructure projects. In the educational sphere also, we want to invite more Indian students to Japan instead of expanding our universities here,” says Yagi.

“If more students come to Japan, the tourism sector will be boosted. As of now, the number of tourists from India to Japan is very limited. Most of them feel that Japan is an expensive country and some of them also have language constraints. But if they do decide to come to Japan for a holiday, I am sure they will not return disappointed. They will be assisted so that their stay is comfortable,” he says.

“But here, I would like to clarify that Japan is not very expensive and we will welcome tourists from India to our country. As far as Japanese investors are concerned, the Indian government doesn’t have to do much to lure them as they are already on a rise. Both the governments can cooperate to bring in more investors. The Indian infrastructure is expanding rapidly and India is not dependent on Japan for its infrastructure. It is self-sufficient, in fact, many countries are attracted to India because of its natural resources,” he notes.

“Since this year, we are celebrating the 60th year of Indo-Japan diplomatic ties, we are organising more than 160 cultural and intellectual exchange events. This will include introduction of Japanese technology and conducting a host of cultural programmes in various parts of the India. These exchanges will help Indians to know their country better and in creating awareness about our country and its culture,” he sums up.

Yamaha queues up a HOT new 250cc motorbike for 2014!

The motorbike giant will be rolling out an influential 250cc engine sports motorcycle in the Indian market within two years.
Yamaha is set to make an impact in 2014 with a new motorcycle.
Presently, the Japanese bike firm is concentrating on the scooter section.

Hiroyuki Suzuki, India Yamaha Motor, managing director and chief executive officer, stated, "We will concentrate on the scooters section for the coming two years, but in the year 2014, we will roll out influential sporty 250cc motorcycle in the domestic market. There is a positive market for this premium section that we would like to beat."

At the moment, there are some players comprising Kawasaki's Ninja are present in the 250cc category and Honda with its premium sports motorcycle CBR 250R.
Local firms, like Bajaj and Hero MotoCorp are also functioning on sports motorcycle for the domestic market.
In the Indian market, Yamaha has attendance in the deluxe and premium bike sections and has 150cc catered engine bikes.

Owing to its concentration on the rising scooters' zone, Yamaha will not bring in any fresh bikes for the coming two years, but will keep upgrading its subsisting bikes.
It will introduce a scooter series for diverse target profiles.
The company also proposes to roll out a mass market 125cc bike in the country by the year 2015. The mass-market motorcycle will be fabricated in the country from its novel facility in Chennai. The facility will be ready by the year 2014.
The company, which started exporting made-in-India motorcycles to the Japanese market in August 2012, is also eyeing exporting additional models to Japan. Yamaha is exporting deluxe bikes R15, a 150cc sports motorcycle fabricated at its facility in Surajpur.
"The bikes made in the domestic market meet up the advanced specification of originated markets and they are created at a lower cost. The value is almost double in Japan. We are sending R15 to the Japanese market to experiment market, and if the reaction is positive, we may discover additional products for export to Japan and other superior market zones," Suzuki added up.

Hitachi deal with Gujarat for sea water desalination plant

PTI reported that Japanese industrial solutions giant Hitachi will sign a contract with the Gujarat Government next month for setting up a sea water desalination plant in the State that will treat 0.336 million tonnes of water every day.

To be executed by four partners, the construction will largely be financed by the Japanese Government under Indo-Japan joint investment strategy.

Mr Ichiro Iino MD of Hitachi India said that “We are going to sign the contract next month with the Gujarat Government. The plant will be developed under Build Own Operate Maintain method. The plant will have the capacity to desalinate 3,36,000 tonnes of water per day.”

Apart from Hitachi, the other partners are Hyflux from Singapore, Japan’s Itochu Corporation and the Gujarat Government.

When asked how much could be the investment to build the plant, Mr Iino said that “We have not decided it yet as the details are being worked out. The project will be developed by Indo-Japan joint investment and largely be financed by the Japanese Government. To be constructed at Dahej, the plant is scheduled to be operational by 2015.”

He said that “The treated water will be sold to Dahej SEZ. Also factories at Delhi-Mumbai Industrial Corridor will purchase desalinated water from this plant.”

Earlier this month, Hitachi had announced plans to invest about INR 4,700 crore for expansion in India, including setting up of five new manufacturing plants and acquiring local firms, by March 2016.

India will quietly endorse a stronger Japan

The seas hold the key. In case, just in case, the world does not end this weekend, we will be looking at a very interesting 2013. Emerging conflicts or emerging alliances around seas are likely to determine security networks among key countries in the world. Large swathes of blue will be the theatre for some serious geo-political action going forward. 

Try this for size — the uncertain part of the world now is not the badlands of Pakistan-Afghanistan, but sundry island chains in Asia-Pacific. In Af-Pak, the world will be pleasantly surprised if things take a turn for the better, so nobody is holding their breath. But up in east Asia, the cast of characters in a potential conflict are some of the top economies of the world. Although India is not a party to the disputes roiling these freezing waters, we are smoking something really strange if we think conflict or confrontation here will not affect us deeply. Like it or not, India needs to craft out a detailed policy on everything from the Sea of Japan to South China Sea and all the way up to the Straits of Hormuz. 

Up in northeast Asia, Park Gyeun-Hye, who just won a handsome victory, promises a path of more equitable economic growth for Koreans. But her foreign policy is likely to be more conservative. As east Asia's first woman president, Gyeun-Hye is circumspect about cosying up to the North Koreans, but unlikely to junk them outright. That opens up different possibilities about dealing with this hermit kingdom, starving but with a growing nuclear arsenal. Among her first tasks will be to define her approach to Japan and China. This could affect how she deals with missile-happy Pyongyang, carve out a defence agreement with the US, or be sitting atop a simmering eruption on the Dokdo/Takeshima islets in the Sea of Japan. 
Tokyo turned right this week when Shinzo Abe rode back into town with a massive election victory that may finally give some political peace to a troubled Japan. Abe has two important tasks at hand, both of which have implications for India. He needs to get the Japanese economic engine fired up again out of its Rip Van Winkle state. Second, he will want to put some meat on the bones of Japanese defence structures. That particular decision will have enormous implications for Japan's force projection in its neighbourhood, as well as in helping the international cause of keeping sea lanes free for navigation. How will a militarised Japan affect its neighbourhood ? How will China react? Or others who have their own histories with Japan? India will quietly endorse a stronger Japan.

In the ASEAN region, the South China Sea dispute between China and several southeast Asian nations will define the 45-year-old organisation for some time to come. Here, India has not only commercial interests, in terms of oil exploration blocks, but strategic interests as well. During the ASEAN summits which peppered the last couple of months, including the one in Delhi this week, countries like Vietnam and Singapore raised concerns. A chance comment by our Navy chief was great news for Philippines but drew fire from China. 
It's important therefore, for India to craft a position that can roll off the tongue as easily by the soldier as the diplomat. It can only come after an honest assessment of its strategic interests and concerns over the coming decades, based on its capacities and future power projections. This week PM Manmohan Singh readily added "Indo-Pacific" to India's strategic vocabulary. If India has to quantify this term, New Delhi had better start sharpening pencils. 

India's claim to the Indo-Pacific can only hold water if India has a credible, achievable strategy on the Indian Ocean. India needs to be the primary care-giver and custodian for this body of water. How it articulates and achieves its goals here, how it resources its security strategy here and how it can collaborate with interested nations, will determine India's strategic future. Sri Lanka, Maldives, Madagascar, Australia and New Zealand, Tanzania and Mozambique, will all play key roles and India will need to marry its security, diplomatic and economic interests along the Indian Ocean Rim. 

If the Straits of Hormuz present clear and present concerns because of Iran's troubles with the US, how should India address, for instance, the potential opening up of the Arctic Ocean? It's unlikely that Indian ships would venture that far. But that's not the point. The opening up of the Northern sea route, and it will happen over the next few years, will completely change the strategic environment for a large part of the world, including India. Check out the figures. This year, over 46 vessels sailed the route, compared to 34 in 2011 and only four in 2010. 

When the Northern Sea Route is fully navigable, China or Japan's reliance on volatile seas in the south may be significantly reduced. What will be the stakes for India then? How will Indian interests be affected? We need a plan.

India-Asean Strategic Partnership

As part of its “Look East” policy, India has been increasing strategic ties with countries such as Singapore, Japan, Vietnam, Indonesia and Malaysia.

The two-day summit beginning on Thursday is expected to adopt the 'ASEAN-India Vision Statement 2020', which will also commit both sides to great security cooperation.
According to experts, "Some countries in ASEAN will be looking to India for support on the South China sea. Particularly, they would like India to emphasise that it considers freedom of navigation as a fundamental interest in the South China sea. They will be looking to India to possibly for some capacity-building support, either training or military equipment."

Last week when external affairs minister Salman Khurshid visited Myanmar, India is proposed deeper defense ties with Myanmar after visits by high-ranking military officials.
In a bid to emphasize its strategic reliability Khurshid emphasized the benefits of bilateral defense cooperation, noting that India's army, navy and air forces service chiefs have all recently visited Myanmar and defence minister AK Antony is to visit Myanmar in January and President Thein Sein of that country is here in New Delhi for the India-ASEAN summit.

Myanmar currently imports its weaponry. Earlier this month, the Swedish Agency for Non-Proliferation and Export Controls reported that Myanmar has used M-3 Carl Gustav anti-tank weapons, manufactured by Saab Bofors Dynamics, part of the Saab group and one of the world's top 30 producers of armaments, in its battles against Kachin guerrillas, who provided the physical evidence of the weaponry's deployment.

But India's "Look East" policy and a need to lock down energy supplies for its rapidly growing industrial sector are pushing it to gradually step up military activities in the region with more joint exercises and visits.
In his annual press conference, earlier this month, naval chief Admiral DK Joshi said his force was ready to deploy naval vessels to the South China Sea to protect its oil-exploration interests there if needed.
India is exploring an oil and gas block with Vietnam in the disputed waters and in future is likely to bring more liquefied natural gas through the Malacca Straits. Khurshid said that along with counter-terrorism, energy security was among India's top foreign policy priorities.

"We have become far more resource orientated because development is of course heavily dependent on resources. We import 80 % of our fuel," Khurshid said.
According to Ian Storey, senior fellow of the Institute of Southeast Asian Studies in Singapore, India had yet to impress many ASEAN partners, despite strong ties to Vietnam.

Earlier this year, the Indian Air Force chief, Air Chief Marshal NAK Browne, visited Kuala Lumpur. Malaysia is also seeks training in submarine operations from Indian personnel. Besides, Malaysia has also evinced interest in the procurement of the supersonic cruise missile BrahMos.

Mr. Daizo Ito, President – Panasonic India Awarded ‘Man of Electronics’ Award by CEAMA

Mr. Daizo Ito, President – Panasonic India, has been felicitated with the ‘ Man of Electronics’ award by Consumer Electronics and Appliances Manufacturers Association (CEAMA). CEAMA is an association of organizations in the consumer electronics and durables sector and comprises of domestic and multinational players.

The award recognizes Mr. Ito’s exceptional all round contribution to the Indian Electronics and Appliances Industry and was awarded by Mr. Praful Patel, Minister of Heavy Industries and Public Enterprises.

Accepting this award Mr. Daizo Ito said, “Today, India is the second fastest growing economy in the world and the Indian equity market is emerging as the third-largest equity market globally. I strongly believe that with such a powerful talent pool, a large domestic market and an export market that is moving towards emerging countries, India is all set to become the next Manufacturing Superpower. When I look at other big nations in the Asia Pacific region like China, I see huge potential in the Indian subcontinent to become the next favorite manufacturing hub.”

Mr. Daizo Ito is responsible for driving profitable business growth for Panasonic in India and spear heads the entire operations and management for the brand in the country. He leads the implementation of corporate strategy related to the company’s personnel, suppliers, potential and actual customers, and investors underscoring the significance of India on Panasonic’s global roadmap. Corporate governance and social innovation initiatives for Panasonic’s sister concerns and domain companies in India, also fall under Mr. Ito’s purview.


About Mr. Daizo Ito

Mr. Ito joined Panasonic India as Chief Executive Officer in April 2008 and he was appointed the President of Panasonic India, starting April 2010. Prior to joining Panasonic India, he served as the CEO of Panasonic Thailand, which comprised 23 (BU) Panasonic group companies spanning across Manufacturing, Sales and Research functions. Before serving in Thailand, he had a thirteen years stint in Sales and Marketing in the United Kingdom and the Asia and Oceania Region. In 2005, he was appointed at the prestigious position in Matsushita Electric Industrial Company, making him one of the youngest ever in Panasonic to receive the distinction.

Mr. Ito’s success mantra is based on three core pillars- Empowerment, particularly in promoting local talent to leadership positions within Panasonic India; Localisation, the creation of products within India that meet the specific needs of our customers; and Rich Communication, embracing a spirit of transparency and openness about not just our sustainability work, but about the role that Panasonic plays throughout Indian society. His vision entails making Panasonic, an Indian company in India and thus under his aegis and able guidance the company creates meaningful and innovative products for the Indian consumers keeping in mind their needs. A visionary with exemplary leadership style, his endeavors have made Panasonic a household name in India.

Having embraced a guiding fact for the brand’s mission Mr. Ito believes that the surest way to achieve success for the company is to also ensure the success of customers and society in which we work. He believes that building on long relationship with Indians and their culture is increasingly central to achieving business, social, and environmental goals. He leads the entire company in India to work to meet the needs of a rapidly growing society, empowering Indian customers and workforce to live better while living more sustainably.

It is under Mr. Ito’s leadership and commitment to expanding product innovation, driven by Indians and for Indians that the company has reached another milestone in its journey in India by the opening of its new manufacturing unit - Technopark in Jhajjar, Haryana. This factory, inaugurated in December 2012, will fuel Panasonic’s first priority goal in India of doubling revenue in fiscal 2012-2013. Mr. Ito leads the company with plans to achieve this goal by focusing on three core strategies: pursuing company vision of becoming the No. 1 Green Innovation Company in the Electronics Industry by 2018, integrating Indian expertise into product design and manufacturing processes, and increasing focus on rural development to ensure that Panasonic India performs as a responsible corporate entity contributing to the equitable growth of the entire Indian society.

Another endeavor under Mr. Daizo Ito’s direction has been the issue of Panasonic’s first sustainability report for the year 2011-2012. Under his tutelage, the brand has already taken great strides in achieving its goals of green innovation and economic improvements to all Indians, as with as with TechnoPark Jhajjar, Ecoskool education partnership, and many other CSR initiatives. The report shows how the company’s work, and in particular, their commitment to becoming the No. 1 Green Innovation Company in the Electronics Industry, will help to bring equitable growth to all Indians, while cementing our place as the most admired, desired, and respected electronics brand in India.

Coping with his busy schedule, Mr. Daizo Ito never misses a chance to attribute his constant enthusiasm and motivation to the opportunities to communicate with the staff members that support him. Apart from his obvious interest in his work, he has a keen interest in Golf and when away from work he tries to spend as much time as he can golf.

Sky is the limit for India-Japan relations

Politicians seldom get a second chance after they have botched up their first. Japan’s new Prime Minister Shinzo Abe should thank his stars that the alliance led by his Liberal Democratic Party could virtually sweep the December 16 polls. It has benefited from the popular revulsion for the Democratic Party of Japan, which seems to have imploded. Abe’s party is the same, which was thrown out of power in 2009.  His own year in office, 2006-07, was a shambles and ended with him suffering from a stress-induced illness.

However, foreign policy analysts in India remember his short tenure as extremely beneficial for India-Japan relations. Whatever may be his shortcomings as a political leader and his view of Japan’s war history, Abe had a clear idea of the role Japan and India should play in building an Asian security framework. He delineated on this issue while addressing Parliament during a visit to New Delhi in 2007. His vision of a “Broader Asia” hinged on Japan enjoying a value-based relationship with India. It visualised a confluence of Indian and Pacific Oceans. Abe has also a clear view of Chinese belligerence, as reflected in China’s claims on islands that have traditionally remained with countries like Japan and Vietnam.

While India and Japan have a lot of defence and foreign policy issues to discuss and be concerned about, trade is one area where they can do much better. After years of gridlock and drift during which Japan has stumbled from one recession to another, Abe’s government now has the chance to lead. Japan is no longer the world’s second largest economy but it still retains enough economic clout that can significantly contribute to the economic growth of India. A pact signed in August last seeks to double bilateral trade to $25 billion by 2014. Now with Abe in control in Tokyo, the target has become easier to attain. India also needs to do much to enthuse Japanese investors.

Getting a hang of the Indian way

Yoko Hayashi from Japan is savouring the real taste of India. In the city as an intern of the Japanese ministry of economy, trade and industry, she tells SHILPA NAIR ANAND that her stay has helped her understand the idea of Indianness .

The setting is one of the Kerala tourism clichés - a Japanese national at an Ayurveda facility extolling the goodness of njavara kizhi. Only that Yoko Hayashi from Kyoto is not a tourist.

The Ministry of Economy, Trade and Industry (METI) of Japan sends young executives to developing countries such as Indonesia, Thailand, Vietnam, Peru, Serbia and other countries besides India. The primary reason for this move is that the Japanese government sees these countries as prospective markets.

Learning a new culture

Rather than continue depending on its traditional markets in developed countries, the Japanese government wants to explore emerging markets and also encourage small and medium enterprises (SMEs) to export to these markets. And this is where young executives like Yoko come into the picture. She is an intern at the Nippon Kerala Centre in Kalamasserry. These executives, armed with the knowledge gained, will return to work with the SMEs. Yoko has worked for NHK, Japan’s national TV, a radio station and is pursuing a Master’s in International Co-operation at Kobe University.

“I have been sent to understand the Indian way,” says the petite young woman demurely adjusting her dupatta. She is attired in a salwar kurta with matching enamel painted earrings. ‘Understanding’ the Indian also entails familiarising Malayalis, children especially, with the Japanese culture. Teaching rudiments of Japanese language, Ikebana (flower arrangement), calligraphy and Origami (paper folding) in schools and colleges are all part of the attempt. Learning Ikebana in Japan, according to Yoko, is preparation for marriage.

Yoko has been in Kochi since September and she says she is getting a hang of the Indian way. It is confusing, she says, but she is figuring it out. “We Japanese are very punctual, but here….” She pauses looking for the right, inoffensive term. Before one can say ‘we are like this only’ she clarifies, “it is alright. It is the Indian way.” It is less stressful, she agrees.

It comes as a surprise when she says that she chose Kerala for her internship. Her compatriots who came to India opted for more happening places such as Bangalore. Extensive research into India and Kerala particularly brought her here. Our political model was something that the political science student in her couldn’t resist - “the Communist party and other parties work together.”

In retrospect, with two more months to go, she is glad to have chosen to come to Kerala, in fact, to be the only one here on the internship. “If I had gone to Bangalore, for example, where there were other Japanese, I wouldn’t have interacted so much with locals and gathered so many experiences,” Yoko says.

Kerala’s natural beauty, its people, our cuisine “Karimeen in particular”…all appeal to her and she has learnt ‘ente per Yoko.’ She has been out experiencing Fort Kochi on her own, by bus. Getting a bus is easy, although people stare, “they are helpful. I just ask which bus and they tell me.”

That’s not all. She has sampled Japanese food at a speciality city restaurant and says the food there is close to the original, ‘only a bit Indianised.’ Kanyakumari? Check. Kovalam? Check. Munnar? Check. She visits tourist destinations when she gets the time on her days off. She has got the njvara kizhi done and reveals that this treatment along with some other Ayurveda massages are available in spas in Japan and have takers there.

Her experience of introducing Japanese culture, she diplomatically says, has been good. Origami was the one that youngsters took an instant liking to, while Ikebana and calligraphy weren’t too easy. Then there were the introductory sessions to Japanese.

These sessions with Yoko were held at Central Board of Secondary Examination (CBSE) schools because the Board has approved Japanese as an optional language. Ironically, according to Edgar Norris, chairman Nippon Kerala Centre, it is not taught in any school in Kerala. And this “despite the fact that we have eight qualified Japanese language specialists trained in Japan.”

The highpoint of her stay here so far is the three-day stay at the Village International School in Thodupuzha. She went shopping, was dressed up in traditional Keralan outfit and “spent a lot of time interacting with teachers and students. I couldn’t do that in the other places where the visit would be brief.”

Ask her about the low points and she says, “We, Japanese, don’t like to complain.” Prodding yields results. Close to Rs. 20,000 ‘vanished’ from her room. The money was stolen? “No. I don’t know for sure. So I mustn’t say that. Maybe a fairy came and took away the money…”

Some fairy indeed!

India’s first artificial kidney making facility opens near Pune

India’s first artificial kidney or dialyzer and dialysis equipment manufacturing facility has been established recently near Pune, Maharashtra, by the Japan-based pharmaceutical company Nipro Corporation, Business Standard reports.

By far the country’s most ambitious project in the medical appliance sector, the enormous factory being set up with an investment of Rs. 7 billion will manufacture dialyzers made from synthetic fibres, disposable syringes and needles, cannulas, IVC (Intravenous Catheters), AVF (Arterial Venous Fistulas) as well as BTS (Blood Tubing Sets).

Spread over an expansive area of nearly 50 acres, the state-of-the-art facility would also install country’s first in-house Gamma technology, approved by the Atomic Energy Regulatory Board of Bhaba Atomic Research Centre, for sterilising medical devices.

About 90 percent of the factory’s current capacity of making six million dialyzers per year will initially be exported, said the company.

Looking forward to work with new Japanese govt: India

India today said it is looking forward to build on the "strong foundation" of bilateral ties with Japan, which will see a new Prime Minister later this month.

"Japan and India have excellent bilateral relations. We have a strategic and global partnership which is very broad-based," Ministry of External Affairs spokesperson Syed Akbaruddin said here.

He added that since the signing of bilateral agreement, several Prime Ministers of Japan have worked very closely with India and "reaffirmed the validity of our relationships".
Japan's incoming Prime Minister Shinzo Abe's is known as a close friend of India. New Delhi hopes the new government in Tokyo will be more decisive on strategic issues.

Incidentally, Abe in his previous stint as Prime Minister five years back, had replaced the term 'Asia-Pacific' with the concept of 'Indo-Pacific' Asia. Abe had stressed on deeper bilateral relations with India on all front, be it cultural, military or economic.

"As far as we in India are concerned, we look forward to the building on a strong foundation of our bilateral relations with the next Prime Minister of Japan," Akbaruddin said.
During his first tenure as Prime Minister, Abe worked on improving relations with fellow democracies, including India and Australia.

New Japan PM an old friend, will give priority to India: government

More than incoming Japanese Prime Minister Shinzo Abe’s professed proclivity towards India, New Delhi is hoping that the next Government in Tokyo will be more decisive on strategic issues.

The trend of India-Japan relations under three Prime Ministers of the previous Democratic Party of Japan (DPJ) remained positive but India’s responses had to be re-calibrated because each Premier had a different take on the geo-political situation and trends, said Government sources.

Officials concede that Mr. Abe had set India-Japan ties on the high road when he was Prime Minister five years back. They also concur with the assessment by strategic experts that he retained his assessment of India as a key spoke in Japan’s scheme of things even after demitting office. But they feel it would be wrong to talk about one entity. “The Government is not supporting one person or the other. It is wrong to crow about the importance of one entity. It is not as if he is special and others are not,” said the sources.

“The only thing we wish is that the new Government will be more decisive. The trend with the DPJ Government continued in the same positive vein as with Liberative Democratic Party (LDP) Governments. But certain decisions took time and the DPJ Government spoke in different voices at the same time,” they added.

The strategic orientation of each DPJ Prime Minister was different. When Yukio Hatoyama became Prime Minister, he tried to draw a line on U.S.-Japan-China relations. His successor Naoto Kan tried to but couldn’t turn around this approach. And Yoshihiko Noda, who followed as Prime Minister, put up the U.S.-Japan alliance as the basis of Tokyo’s foreign policy and international strategy.

The accent on different strategic line ups by successive Prime Ministers of the same party, feel the sources, is now in the past and India-Japan ties would further enhance and expand due to Mr. Abe’s ideological orientation — he wants to revise Japan’s Constitution by designating the defence forces as military and enhanced defence ties with nations (that includes India in the first tier) that do not harbour ill will against Japan.

This means that India’s defence and strategic ties with Japan could become stronger. Even if the civil nuclear agreement could take some time, India could look forward to the removal of some of its companies from the list that restricts their interaction with Japanese companies.

The last such revision took place two years back, around the time India agreed to hold a 2 + 2 dialogue involving Defence and Foreign Secretaries from both countries. Ironically, the removal of some Indian companies from the Japanese export control list benefited Tokyo more during its time of need.

Indian Rare Earths Limited, which was on Japan’s export control list but was removed in 2010, has come to the rescue of Japan’s automobile industry by promising to supply the mineral. China had refused to supply rare earth materials.

Indian IT boom in Japan continues

The first time Asmat Mohamado heard about Japan was when he was in primary school in India. Back then, he did not know where exactly in the world the nation was located, though he did know that Japan was the country where the sun was said to rise, or more accurately, the land of the rising sun.
“The only imagery I had of Japan at the time were some pictures of the country, typically national symbols such as Mt Fuji, kimono and so on,” he said.

Ajay K Singh went through most of his childhood in India without knowing anything about Japan, but that would change in adulthood when he would be interviewed for a position by a Japanese client. “I didn’t know much about Japan in terms of work life when I was interviewed, but had a rough idea of what Japan was as a country,” he said.
Singh’s opportunity to move to and work in Japan’s IT industry came in 2001 through an Indian staffing company that was looking to recruit someone to work at a Japanese IT infrastructure provider. “I was keen to take on the job and relocation to Japan as a challenge,” he said.
For Mohamado, traveling to and working in Japan became a possibility while he was studying electronic engineering in India.

“In addition to looking at the significant developments going on in the electronics fields, I was also keenly interested in the global impact of electronic products that were ‘made in Japan,’” he said. “My overall impression of Japan at that time was that it was the home of electronics.”
Mohamado says he initially intended to move to either the UK or U.S. for higher education, but that changed once he started to explore other options available to him in Asia.
“I found that Japanese universities were also providing some of their courses in English, which was a very rare thing during the ‘90s compared to what is available today,” he said.

When Mohamado came to Japan to study his Masters in Electronics and Computer Engineering at the Nagoya Institute of Technology, he was immediately overwhelmed by the language barrier. “I was not able to communicate with anyone and this was frustrating in the beginning.” 
While Mohamado says living in a country with reliable public transportation was nice, as well as having a comfortable apartment with all the latest “made in Japan” electronics that he was such a fan of, there was still one stumbling block to his initial stay. “It took me a while to get used to fact that people ate raw fish in Japan,” he explained. “I came from a country where all the food is cooked or grilled.”
In addition to sharing Mohamado’s concerns about the language and food, Singh was unsure what life would be like in Japanese society. “I was initially concerned about living in country that happened to have a conservative approach towards the outside world,” he said.

Mohmado and Singh are not the only Indians to have made the jump to Japan for work, with the Ministry of Foreign Affairs recording 16,988 Indians living in the country in December 2005. From that number, an estimated 10,000 Indians, or two thirds, were working in the IT sector.
With numbers such as these, it has prompted some people to comment that the tech industry in Japan is in the midst of an Indian IT boom, potentially fueled by growing IT infrastructure needs due to increased digitization of all facets of modern Japanese society and business.
Mohamado, who is now a sales director for the cloud computing business of a leading company, acknowledges that the last few years have brought a lot of Indian IT talent to Japan, but he says the genesis of the moment can be traced back even further than merely a few years.

“The Indian IT industry started to hit off around 1993, and even then they were trying to expand by approaching off-shore markets and outsourcing offers,” he said.
Singh, who now works in IT infrastructure and service management at a financial institution, said the boom is not as significant as people make it seem.
“The Japanese government is trying to change its policy in regards to this, but I currently think it is not enough,” he said.

Beaumont Group Japan Technology Practice Partner Mike Armstrong, who specializes in hiring of IT professionals, paints a more sobering picture of the IT economy in Japan, which he admits has had its fair share of ups and downs the past 10 years.
“I think it’s the same for Indian IT professionals working in Japan, as in the early 2000s there was a massive boom and we saw a lot of Indian IT professionals, many with low or intermediate Japanese language skills, getting jobs in technical sales and management roles” he says.

However, Armstrong said the bankruptcy of Lehmann Brothers in 2008 meant that Japanese clients have become more selective.
“There is still opportunity for Japanese speaking IT Indian professionals, but I wouldn’t call it an Indian IT boom,” he said.
In addition to the “Lehmann Shock,” the events of March 11, 2011, may have also dampened some of the enthusiasm of both existing and potential job seekers.
Mohamado concedes the triple punch of an earthquake, tsunami and nuclear accident may have reduced some of the appeal of working in Japan for certain Indian IT professionals.
“Many of my Indian friends have left Japan or are thinking of leaving in the next few years,” he said. “I’m sure this in turn is also contributing to slow market growth and less opportunity here, though the Indian market is growing and the salary gap is narrowing.”

Singh, though, is more bullish on what effect 3/11 may have had on Indian IT professionals in Japan.
“Those who left due to fear of what happened immediately returned back,” he says. “The amount of jobs remains the same and I noticed no big change in the economy other than a small decline.”
Despite that outlook, Singh admits that the events of March 11, 2011, have caused him to reconsider his decision whether to stay and work in Japan in the long term.

Armstrong admits the shine of working in Japan, whether perceived or real, has dulled since the nuclear accident, whether it is short-term/contract Indian IT professionals or expat Indian IT executives with families. At the same time, he said most Indian IT professionals who have been working in Japan long term are still in the country, so it all depends on the individual and how long they have been in Japan.
“I had dinner with a friend recently who is originally from India and has been living and working in Japan for 15 years,” Armstrong said. “He has a good job with a global networking company and a family, and he has no plans to go back to India.”

While some of the Indian population may have left the Tokyo region in the wake of 3/11, two days following the disaster, Mohamado went to Sendai to assist with relief work, such as cooking hot soup for the victims in the area. He later went to Ishinomaki, one of the most damaged cities in the Tohoku area, where he helped with the preparation of food for approximately 3,000 to 4,000 people daily.
“I am a permanent member of Humanity First, a worldwide charity organization, and together with few members of Humanity First we built a camp for the victims,” he says. “It never occurred to me to do anything different than to be close to the Japanese people in the affected disaster areas and help them.”

Honda, Toyota developing India as a major parts export hub

Japanese automobile majors Honda Motor Company (HMC) and Toyota Motor Corporation (TMC) are looking at shaping up their domestic operations as major parts exporters after the introduction of India-specific models Brio and Etios, respectively, in the country.

While Honda Cars India (HCI) is expecting revenues from component exports to increase to Rs 471 crore this year on demand for small-car Brio parts in Thailand, Toyota will ship transmissions for the Etios and Liva to Brazil in January.


“Quality and competitiveness are high in India. We are exporting as many as 56 critical engine and body components for the Brio from our facility in Tapukara, Rajasthan. Besides, some components for the Jazz and City are also being shipped from India”, said a senior executive at Honda Cars India.


The subsidiary’s revenues from component exports had gone up dramatically to Rs 229 crore the last year after the introduction of the Brio to the Indian market, compared to the Rs 11.30 crore registered from the business venture in 2010-11.


“When the floods affected production in Thailand, we stepped up exports of components to our other Asian facilities from India. Revenues from component exports consequently doubled to Rs 229 crore over our initial estimates of Rs 112 crore last year. Apart from de-risking business, exports helps in countering the impact of adverse forex fluctuations”, said an executive with Honda Cars India (HCI).


Overall, Honda exports engine and critical components for the Brio, Jazz and City to Argentina, Brazil, Indonesia, Malaysia, Japan, Philippines, Taiwan, Thailand and the United Kingdom. The company has a vendor base of 150 suppliers in India.
Toyota, too, which made the global debut of hatchback Liva and sedan Etios in India, will start supply of transmissions from Toyota Kirloskar Auto Parts ( TKAP) to its Brazilian affiliate early next year. Sandeep Singh, deputy managing director, said, “The Etios has opened opportunities for vendors in India. Transmission for the models will be supplied from India to Brazil, where the Etios range has been introduced recently.”


TKAP has invested Rs 500 crore to commission a gasoline engines’ assembly facility and a transmissions’ production unit in Karnataka.
While the gasoline engine unit started operations in August this year, the transmissions production facility with an annual capacity of 240,000 units will be commissioned in January 2013.


TKAP already exports transmissions for multi-utility vehicles (MUV) Hilex and sports utility vehicle (SUV) Fortuner to manufacturing facilities in Thailand and Argentina.

Abe’s win in polls set to boost Japan-India ties

When Japan's conservative Liberal Democratic Party ( LDP) chief Shinzo Abe's tenure as prime minister was cut short in 2007 — for health reasons — India seemed to have been deprived of the main course after a scrumptious appetizer. As the lower house elections in the country would have it on Sunday, the time for that elusive main meal has come now.

Known for his 'emotional connect' with India, Abe seemed set to be sworn in as the new PM with the LDP-led coalition winning an absolute majority in the House of Representatives.

As PM in 2006, Abe had stunned many by predicting that Japan-India relations had the potential to overtake Japan-US and Japan-China ties . "Abe had outlined a bold vision for Japan-India ties and his coming back should be a great opportunity for the ties to rapidly expand," strategic affairs expert C Raja Mohan told TOI here.

During his a visit to India in 2011, Abe had told a gathering at the ICWA, "India's success is in Japan's best interests and Japan's success is in the best interests of India."

Abe's comeback couldn't have come at a better time for India. For one, he has taken a much more pragmatic view of Japan's nuclear policy in the face of the Fukushima accident than his predecessor Yoshihiko Noda who wanted to phase out nuclear power completely by 2030. Instead of shunning it altogether, he has asked to let reactors considered safe reopen. This has led to hope that talks with India could resume peaceful uses of nuclear energy.

Abe won despite the popular sentiment against nuclear power. "Our focus should have been on renewable energy but Abe is a short-sighted man," mayor of Minamisouma city, Katsunobu Sakurai, said. Minamisouma was one of the worst affected areas on the Pacific coast by the March 2011 earthquake-tsunami and its nuclear fallout.

Abe's hawkish stand on China (he recently described Japan's position on Senkaku islands dispute as too reserved) is not going to harm India either at a time when the focus of the world has shifted to the Asia-Pacific in the face of Beijing's growing assertiveness in the region.

It remains to be seen though how quickly Abe can move to implement some of the controversial issues on his agenda, like his intent to rebuild ties with the US by "exercising the right to collective self defence". He wants Japan to be able to militarily defend its allies who are attacked by tweaking the interpretation of Japan's constitution, if not the constitution itself.

Deflation: Japan needs India, not foolish monetary easing

The Japanese yen dropped against the U.S. dollar on Monday, Dec 17, after Japan's newly elected Liberal Democratic Party vowed to print unlimited amount of currency to boost GDP numbers.

It is not clear who is offering such prescriptions to Japanese leaders, but combating deflation with monetary easing is like shooting oneself in the foot while trying to hunt the whale for lunch.

First, if prices are stable or declining, that is good for the Japanese consumers as they are motivated to save and spend prudently on products and services.
Second, deflation buoys the bond market, allowing Japanese government to borrow at much lower interest rates to finance its growing debt. If inflation fires up, it will put pressure on the existing bond holders and the consumer market, particularly fixed income dependent retirees.

On the equity side, both the Nikkei Index and the real estate market have been adjusting downward ever since the Japanese equity bubble popped. This long term correction is painful but necessary.
Monetary easing will generate short term stock market euphoria, but the long term consequences will not be healthy.

While there is little doubt that fiscal stimulus geared towards infrastructure improvements and R&D has had a positive effect on Japanese living standards and technological development, monetary easing has not driven GDP growth anywhere close to what Korea or even US have registered.

It has made the mounting public debt problem far worse, while not giving any substantial advantage to Japanese consumer goods sector in international markets. The one bright spot has been Japan's exceptionally well designed protectionist policies, which have helped insulate the Japanese industrial and service sectors from arbitrage trade, while allowing its capital goods manufacturers to dominate international markets.
Had Japan allowed yen to strengthen faster, import costs especially for energy, food and some minerals would have been substantially lower.

Despite the domestic banks flush with yen, consumer goods manufacturers have been compelled to inaugurate new factories in China and ASEAN to keep their balance sheets in black.

Unsurprisingly, the Sino-Japanese bilateral trade has expanded enormously since 1990. By 2011, it reached a record $345 Billion. This helped create millions of new jobs in Japan, while improving corporate balance sheets. Further, it generated much needed revenue for Japanese federal government.

However, now Japan needs new markets and greater trade surpluses to manage its debt load. A much faster growth in Indo-Japanese bilateral trade is exactly what is needed, not limitless dilution of yen and slow hemorrhaging of Japanese savers, consumers, and importers.

Japan's bilateral trade with India is not even 1/15th that of China, a glaring imbalance.
As Chinese labor costs rise, Japanese businesses might be motivated to open new production and service centers in India. The enormous Indian market is waiting to be tapped. Japan Inc. should grab this opportunity to save Japan from its debt.