Japan and India: Moving towards a better economic future

In a globalized and industrialized world, businesses work on principles of cooperation,

collaboration, and mutual interests. This also holds true for the two major Asian powers,
namely India and Japan. To discuss the significance and concerns in the context of Indo-
Japanese trade relations, we connected with Mr. Faisal Ashraf, MD, Mitsui & Co. India.

Mitsui & Co. is one of the largest Japanese companies engaged in a variety of business
segments such as Iron and Steel Products, Mineral and Metal Resources, Machinery and
Infrastructure, Chemicals, Energy, Lifestyle, Innovation and Corporate Development, etc.
Mr. Ashraf provides valuable historical, environmental, and geopolitical insights into the
nature of trade relations between Japan and India.

1. For the past few decades, India and Japan have had a wonderful diplomatic
relationship. What makes this partnership so successful?

The amiable diplomatic relations between Japan and India did not surface just recently, but
have sustained over centuries. The roots of this relationship could be traced back to
Buddhism in the 3rd or 4th century B.C. In fact, the earliest recorded visits of Indian
Buddhists to Japan date back to the seventh or eighth century A.D., though such people-to-
people interactions must have begun much earlier. Buddhism is, in fact, one of the
foundational elements of the mutual respect based diplomatic relationship between India and
Japan as it exists today.

2. How is Japan getting more attention in India? What are the factors making Japan's support
for India prominent?

India has been a great admirer of Japan’s post-war economic resurgence and reconstruction.
In the 1960s and 70s, Japanese know-how and the backup provided by Japanese financial
Investment through Yen Credit instruments led to immense development in India’s
infrastructure, such as deep-water ports, iron ore mines, railways, etc. It significantly
contributed to India’s subsequent growth as a global steel player, making it the second-largest
producer and consumer of steel and the most exciting steel market in the world. This
momentum continued even after the Cold War era, as India has since been the largest
recipient of Japan’s ODA capital.
More recently, both countries deeper engagement centered on the Quadrilateral Security
Dialogue (QUAD) has played an important role in furthering the agenda.

3. Which crucial industries does Japan intend to invest in India? How are Japanese
businesses like Mitsui & Co competing with other big players to win the Indian market?

Japan, like all other major global players, acknowledges the unprecedented acceleration of
India’s economic growth, more so as growth in the more traditional industrial &
infrastructure domains is now complemented by significant growth in consumer markets and
the digital space.

Japan has the technology, knowledge and capability to build business models suited to India
that will rapidly grow in the future. While Mitsui has a strong Japanese DNA, it is also a
highly diversified global company. Therefore we are always focused on becoming the Indian
window for all of Mitsui’s subsidiaries throughout the world, including the US. From our
standpoint, all investment into India is welcome provided it adds value through solutions
crafted to the unique Indian environment. In line with this approach, as Mitsui we place
disproportionate emphasis on customizing technologies, financial models, and the consequent
deployment of business models that are suited to the unique requirements and challenges of
the Indian market, including its consumers and the society at large.