Both countries deal with a wide variety of business operations and have observed substantial growth because of the strategic partnership. Since the beginning of the diplomatic agreement between the two nations, Japan has played a pivotal role in encouraging industrial and economic progress in India through reasonable grants, loans, and technology. More importantly, over the years, these agreements have also displayed success for both. To exemplify, in the case of the Delhi metro or the formation of Japanese Industrial Townships (JITs) providing benefits for firms to operate in.
India and Japan's economic relationship has had significant growth since 2014, with a critical revamp taking place when ‘Modinomics and Abenomics came in to promote the Japanese companies in India through massive funding and incentives.
Toyota, an automotive manufacturer, has an extensive business operation in India, producing and selling many vehicles. They have benefitted from nations' middle-class category and the rising automobile demand.
R C Bhargava, Chairman, Maruti Suzuki, said "I believe that India Japan partnership, which we have seen in Maruti Suzuki and some other areas, is becoming stronger, and more and more Japanese companies are getting interested in investing in India, partnering with Indian companies,"
Overall, there are several promising factors that enable Japanese manufacturing firms to perform their business operations seamlessly in India. These factors also encourage other potential firms from around the world to explore the Indian market. The favorable conditions include less complex business operations, strategic agreements, growth in infrastructure, and cutting-edge technologies that support the Indian market and make it a significant hub for Japanese-based firms. The global manufacturing landscape is evolving, and the companies will contribute their maximum potential, leading to growth and development.