New Delhi, 01 November 2021: The National Association of Software and Services Companies (NASSCOM), in association with Nomura Research Institute (NRI), today launched its report titled ‘NASSCOM-NRI report – Japanese investments into Indian IT’ at a virtual event, that was supported by Ministry of Economy, Trade and Industry, Government of Japan, Embassy of India, Tokyo, and JETRO. The report sheds light on Japanese investment into Indian IT between 2016 up to 2021 and aims at predicting trends for the next couple of years.
Shri Rajeev Chandrasekhar, Hon’ble Minister of State, Ministry of Electronics and Information Technology (MEITY) and H.E. Mr. Hirose Naoshi, Vice Minister of METI addressed the event. H.E. Mr. Sanjay Kumar Verma, Ambassador of India to Japan and Mr. Yasuyuki Murahashi, Head, JETRO India also shared their messages. The event also included a panel discussion on “Exooring Opprotunities for Japanese Investors in India”.
As per the report, the Indian IT sector has enabled many Japanese corporations to adopt digital capabilities and innovative business models. Further stating that, Japanese policymakers view India as a reliable partner for accelerating Japan’s digital transformation and started investing heavily in Indian tech startups since 2016. The total investment has reached ~$9.2 bn, characterized by growing number of deals and big deals mostly by large investors like Softbank. Startups in Fintech, healthcare and mobility sector are the hot sectors attracting investment from multiple Japanese investors followed by E-commerce, enterprise, and real estate.
According to the report, Japanese investment in the Indian IT and startup ecosystem has grown ~4X times since 2016, thus helping create ~102,000 additional jobs. As a result, total employment generation in the technology and IT space would reach ~361k by 2023, where startups would contribute ~80% of the total employment. The employment generation is led by increased funding available for Series D and above startups accompanied by many deals coming for early-stage startups and increased investment in IT and technologies like AI, ML, IoT.
Sharing her thoughts, Debjani Ghosh, President, NASSCOM, said, “This increase in the investment by Japan is a testament to our performance and expertise. The technology industry has become a reliable partner for digital transformation journey and innovating new business model to Japanese companies. Japan and India have worked as strategic partners leveraging their respective strengths and co-creation to bring best products for the global market.”
H.E. Mr. Sanjay Kumar Verma, Ambassador of India to Japan, highlighted the growing cooperation between India and Japan under the umbrella of India-Japan Digital Partnership. He said “The scope of India Japan Digital Partnership (IJDP) is vast including business cooperation in field of Electron System Design and Manufacturing (ESDM), digital infrastructure, R&D, strengthening supply chains and cooperation in human resources in IT sector. We need to be creative and innovative to identify new vehicles such as Japan-India Fund of Funds to mobilise funding for mutual business interests.”
Commenting during launch, Mr Yasuyuki Murahash, Chief Director General, JETRO said “The growth of India’s digital sector under COVID has been remarkable, and many Japanese companies are paying attention to the Indian ecosystem. This year, JETRO launched the “J-Bridge” platform and is working on promoting DX and open innovation through collaboration between Japanese companies and Indian start-ups. We are also working with NASSCOM on seminars and business matchings such as this time to strengthen collaboration and create new business in the digital field between Japan and India.”
The report will serve as a benchmark index of gauging progress made since the last few years, predict future trends for years to come, and guide Government response with its targeted policy intervention to further enhance digital ties between both countries.
