Southern Indian states emerging as hotspots for Japanese Cos: Consul General

Chennai, India – Underscoring a transformative new phase in India–Japan economic cooperation, Consul-General of Japan in Chennai, Takahashi Muneo speaking at the 4th India–Japan Business Conference, declared that southern Indian states are fast becoming the backbone of bilateral growth, driven by dynamic industrial policies, thriving SMEs, and an emerging cultural and educational synergy.

In his keynote address as the Chief Guest, the Consul-General emphasised that Japanese businesses are increasingly pivoting toward opportunities in states such as Tamil Nadu, Andhra Pradesh, Telangana, Kerala, and Puducherry, which he described as “dynamic, fast-growing, and deeply committed to investment and innovation.”

“Tamil Nadu hosts the highest number of Japanese companies in India, thanks to its strong infrastructure and skilled workforce,” he said, citing its legacy in the automotive and manufacturing sectors. In Andhra Pradesh, recent policy advances in aerospace and defence, electronics, and renewable energy are opening “strategic avenues for high-end Japanese manufacturing.” Meanwhile, Telangana’s booming tech, pharma, and digital innovation sectors were noted as drawing significant Japanese interest.

Beyond economics, the Consul-General revealed recent developments pointing to deeper people-centric cooperation. He informed that 62 graduates from Anna University, Chennai, have secured placements at Japanese IT firm Third Wave, and will begin training before relocating to Japan later this year. Additionally, Telangana’s Department of Education is sending 100 teachers to Japan between July and September to enhance pedagogical skills through international exposure.

“These are not just events, they are indicators of an evolving partnership — one that goes beyond trade to shape the future together,” the Consul-General said. “Japan brings quality infrastructure and innovation; India brings scale and entrepreneurial spirit. Together, we are poised to create solutions for the region and the world.”

The speech also highlighted the pivotal role of Small and Medium Enterprises (SMEs) in this bilateral evolution. “SMEs are the true engines of innovation, employment, and inclusive growth,” he noted, stating that businesses from both nations are collaborating in precision engineering, green tech, digital transformation, and food processing. With proper support, these partnerships could become globally competitive and help drive a more sustainable global economy.

He cited flagship initiatives such as the Japan–India Industrial Competitiveness Partnership and the Japan–India Digital Partnership as key drivers of technology transfer, investment flow, and startup collaboration. Complementing these are the Economic and Comprehensive Economic Partnership Agreements (EPA & CEPA) that have reduced trade barriers and simplified the investment climate.

The Consul-General credited the India Japan Business Council (IJBC) for curating a dialogue platform that is “unlocking new opportunities, especially for regional players and SMEs,” and praised its role in promoting strategic convergence under shared Indo-Pacific goals.

He further acknowledged a surge in academic and cultural exchanges, with thousands of Indian students now studying in Japan and a growing number of Japanese researchers collaborating with Indian universities. He called these interactions “critical pillars” of mutual understanding.

“Our shared values, mutual respect, and centuries-old cultural affinity are the foundation. But it is our commitment to evolve, innovate, and respond together to global challenges that will define the next chapter,” the Consul-General affirmed.

In closing, he urged stakeholders to “invest not just in business, but in people, skills, and shared aspirations,” adding that the bilateral relationship is not only about transactions—but about building a resilient, sustainable, and human-centric future.

The conference, hosted by the India Japan Business Council, brought together policymakers, business leaders, and academics to explore new avenues of trade, technology, and strategic cooperation between the two nations.

The 4th edition of the India-Japan Business Conference (IJBC) was held on July 10, 2025, at the Madras Management Association in Chennai, establishing the city as a growing hub for Indo-Pacific business diplomacy. Organised by the Indo-Japan Business Council (IJBC), the conference focused on the theme “Accelerating Indo-Japan Partnerships in Technology, Trade, and Sustainability”. It brought together top government officials, business leaders, and innovation experts from both countries.

Siddharth Deshmukh, President of IJBC, inaugurated the event, highlighting its role as a catalyst for strategic collaboration. The conference aligned with India’s Act East Policy and Japan’s Free and Open Indo-Pacific (FOIP) vision, addressing key topics such as digital transformation, SME empowerment, and sustainable supply chains.

Distinguished speakers included Takahashi Muneo, Consul-General of Japan in Chennai, and Takuro Takeuchi from JICA India. Sessions covered design thinking, circular economy, brand sustainability, and Indo-Japan workforce collaboration. The IJBC also honoured distinguished personalities, such as Ramesh Krishnan, for their contributions to the event’s success.

A key highlight was the launch of the IJBC SME Desk to boost cross-border SME engagement. The event concluded with a high-level networking dinner, fostering new business partnerships. The conference generated actionable policy insights and reinforced Chennai’s role in the Indo-Japan business corridor.