JAPANESE COs MAY REIGNITE INTEREST

The launch of India’s first high-speed bullet train project by Prime Minister Narendra Modi and his Japanese counterpart Shinzo Abe according to experts would renew Japanese companies interest in the Indian market.

While it would operate between Mumbai and Ahmedabad, experts pointed out that the partnership would bring in new technology that would help improve the overall rail infrastructure in India.

“The event emphasises Japan’s commitment to India’s long term growth plans. It also will finally boost sentiment and confidence of Japanese firms to reconsider India as a investment opportunity. In the recent past, Japanese companies have shifted their focus from India due to bigticket deals going the dispute way. Recent trends indicate stronger preference for their appetite to acquire US-based firms and businesses in the south-east Asian region where professional management is easier to deal with,” said Zakir Merchant, partner, Khaitan & Co.

“The Japanese tend to firmly believe that they have burnt their hands in attempts to navigate Indian owners and this could perhaps be an event to trigger the next round of control deals from the larger trading houses headquartered in Tokyo,” he added.

Meanwhile the economic research department at SBI said, “Modern practices will be adopted for maintenance of the railway system, which is expected to bring a paradigm shift in the maintenance practices currently being followed. India can also immensely learn from Japan's strategies to do things, which includes cleaning the inside of trains in less than seven minutes at the terminus following the 6-sigma process.”