Japanese firms prefer to invest in TN: survey

: Japanese manufacturing, services and automobile companies prefer Tamil Nadu over other Indian states such as Gujarat and Maharashtra to set up shop due to ease of doing business, according to a state government official.

Talking to The Hindu , a Tamil Nadu Government official said a study conducted by Japan External Trade Organisation (JETRO) and Japan Bank for International Cooperation (JBIC) showed Gujarat and Tamil Nadu as the most promising states for doing business. However, Tamil Nadu had overtaken Gujarat in logistics and friendly business climate.

“Apart from teaming up with the Japanese Government agencies, the Tamil Nadu Government attracted two big banks and this worked in our favour. Most of the Japanese firms are customers of these banks and hence, they did not have any problem in coming to Tamil Nadu,” he said.

In the last 12 months, Tamil Nadu had also attracted several Japanese automobile vendors such as Nissan, Toshiba and Yamaha.

As of October 2015, Tamil Nadu had 471 establishments in manufacturing, services and automobiles followed by Maharashtra with 449.

However, in finance and insurance sectors, Maharashtra had 188 establishments and Tamil Nadu 106, he said.

As many as 73 new Japanese companies got registered in India in the 12-month period ended October 2015, taking the total number of companies to 1,229 from 1,156 in the year-ago period, showing an increase of six per cent, according to JETRO Director General, Chennai, Hidehiro Ishiura

“India is a developing economy and we believe in its growth story. Insurance is a long-term business and we are here to stay,” said a representative of an insurance firm that opened its branch in Chennai recently.

“Maharashtra, Tamil Nadu and Karnataka are already home to large number of firms dealing in automobile and accessories. It is easy to enter Middle East and African markets from here. The success story of Toyota, Nissan and Yamaha made the vendors to follow suit,” said an Indian automobile manufacturer.

Mr. Ishiura said the increase in number of Japanese business establishments was largely due to reasons such as forming joint ventures with Indian partners.

The annual survey for October 2014-15 was carried out by Japan Embassy in New Delhi with its Consulate General, JETRO and various Chambers of commerce and industry in India.

The state also attracted several Japanese automobile vendors such as Nissan