India might soon surge ahead of China as a preferred investment destination for Japanese companies, a top official of the Japan Bank for International Cooperation said Wednesday.
“India has huge potential for attracting investment from Japanese companies,” JBIC Chief Executive Officer Hiroshi Watanabe said in an interview with the Indian English daily The Times of India, stressing that India’s demographic advantage and increasing buying power will “motivate more Japanese firms to set up units here.”
“In India, companies not only manufacture, but also sell their products since the demand is increasing. But Japanese companies used to manufacture in one country and export their products to other countries”, Watanabe said, adding, “The game is now changing”.
JBIC states the gap between China and India in attracting Japanese investment has reduced significantly in the last couple of years.
JBIC conducts an annual survey of Japanese companies’ preferred investment destination, saying, “India is just behind China in last year’s survey, but lately Japanese firms have been steadily reducing investments in China in favor of India.”
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