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Why Japan Is Looking to India

Level 4 Article Source: bbc.com
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Busy modern business district with shops, office workers, factory robots, solar panels, and wind turbines.
Growing business in India.

Japanese companies are expanding their presence in India. Consumer brands such as Uniqlo and Muji are opening more stores, but the trend goes far beyond retail. Japanese firms are also increasing investment in banking, technology, manufacturing, computer chips, and green energy.

One major reason is Japan's shrinking domestic market. The country's population has been declining for years, which means weaker demand at home. For companies that want to keep growing, expanding into overseas markets is becoming increasingly important. India, with its large economy and growing demand, has become an attractive target.

Japanese companies are also trying to reduce their dependence on China. Years of supply chain disruptions and geopolitical tensions have encouraged many firms to spread their business across more countries. However, this does not mean they are abandoning China. Instead, they are trying to reduce risk by avoiding too much dependence on a single market.

Closer ties between the Japanese and Indian governments have also supported this trend. Private companies are now driving much of the latest investment, with Japanese firms announcing billions of dollars in new projects.

India is not an easy place to do business. Foreign investors still face bureaucracy, tax uncertainty, and delays in getting approvals. If India can reduce these difficulties, it may attract even more Japanese investment in the years ahead.

Speaker: British Male  Duration: 1:44  YouTube

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  1. Q: Do you shop at Uniqlo or Muji? What do you like or dislike about them?

    A:
  2. Q: Do you think relying too much on one market is risky for a company? Why?

    A:
  3. Q: What kinds of difficulties do foreign companies often face when they enter a new country?

    A:

Discussion Builder

  1. Q: Do you shop at Uniqlo or Muji? What do you like or dislike about them?

    The main reason is that / For example, / On the other hand, / As a result,

    I shop at Uniqlo quite often. The main reason is that I like the simple designs and reasonable prices.

  2. Q: Do you think relying too much on one market is risky for a company? Why?

    because / although / unless / while

    Yes, I think relying too much on one market is risky because a sudden economic or political problem could seriously affect the whole business.

  3. Q: What kinds of difficulties do foreign companies often face when they enter a new country?

    For example, / In my opinion, / As a result, / On the other hand,

    Foreign companies can face many difficulties when they enter a new country. For example,, they may have to deal with unfamiliar laws and complicated approval processes.

Discussion Questions
  1. Why do you think India is attractive to Japanese companies?
  2. What kinds of Japanese products or brands are popular in your country?
  3. Do you shop at Uniqlo or Muji? What do you like or dislike about them?
  4. Do you think relying too much on one market is risky for a company? Why?
  5. What problems can supply chain disruptions cause for ordinary customers?
  6. Which is more important for a company choosing a new market: size, growth, cost, or stability?
  7. Would you prefer to work for a local company or an international company? Why?
  8. Can you think of a foreign company that has become very successful where you live?
  9. What kinds of difficulties do foreign companies often face when they enter a new country?
  10. How can a shrinking population affect businesses in a country?

Discussion Questions

  1. Why do you think India is attractive to Japanese companies?
  2. What kinds of Japanese products or brands are popular in your country?
  3. Do you shop at Uniqlo or Muji? What do you like or dislike about them?
  4. Do you think relying too much on one market is risky for a company? Why?
  5. What problems can supply chain disruptions cause for ordinary customers?
  6. Which is more important for a company choosing a new market: size, growth, cost, or stability?
  7. Would you prefer to work for a local company or an international company? Why?
  8. Can you think of a foreign company that has become very successful where you live?
  9. What kinds of difficulties do foreign companies often face when they enter a new country?
  10. How can a shrinking population affect businesses in a country?