New Delhi: Japan should leverage India’s expertise in IT and financial sector outsourcing, besides seeking to set up SEZs in the South Asian nation for third country exports, a policy group has suggested the Japanese government.
Like their western counterparts, Japanese firms should leverage India’s outsourcing prowess or they could end up losing international competitiveness, the Japan Forum on International Relations said in its report -- India’s Leap Forward and Japan.
“Instead of coddling their affiliated IT companies and client hardware companies, Japanese financial institutions should develop open IT systems and outsource some of their business to Indian software-related companies,” said the 29th policy recommendations by the policy group.
It also called for Japanese manufacturers to forget their concerns on intellectual property rights related to its hardware technologies.
During the former Japanese Prime Minister Shinzo Abe’s India visit in August, both the countries had committed to enhance bilateral trade to $20 billion by 2010 from $8.5 billion in 2006.
Calling for the better use of SEZs, the group said it would help in expanding exports from India.
According to the report, the promising areas of investment in India include general and industrial machinery, processed foods, chemical products, pharmaceuticals, retail markets, real estate, sanitary goods and cosmetics.
“The current pattern of investment -- almost exclusively in the transportation equipment sector -- must be abandoned if Japan-India business relationship is to grow,” it noted.