Over the past few decades, India has transformed into a critical hub for global business, with companies from all corners of the world recalibrating their strategies to tap into its vast potential. Among these, Japan has emerged as a key player, with an increasing number of Japanese companies recognising the opportunities within India’s growing market. Yet, succeeding in India requires more than just investment; it demands a deep understanding of the cultural nuances and a shift from traditional business models to a more localised, leadership-driven approach.
Seiji Ota, Partner, Deloitte India, has witnessed this transformation firsthand. With nearly 30 years in India, he has been at the forefront of advising Japanese firms on how to successfully navigate the complexities of the Indian market. In this conversation with BrandWagon Online, Ota shares his personal journey, the evolving strategies of Japanese businesses in India, and his perspective on the sectors and cultural factors that are shaping the future of Indo-Japanese business relations. (Edited Excerpts)
Q: You’ve been in India for almost three decades. What brought you here and what made you stay? Any memorable personal experiences?
A: My journey to India began in 1992 when I was studying in Tokyo. The founder of my university, someone I deeply respect, encouraged us to visit China and India while still young, saying it would completely change our perspective on life. This led me to India in 1993 as a tourist, where I was struck by the country’s diversity and the warmth of its people. A Japanese tour conductor told me, “If you meet five Indians, four might give you a hard time in some way — but the fifth will be so incredible, they’ll make you forget all about the other four.” That stayed with me. I came to India in 1995 for post-graduation at Delhi University’s North Campus, and since then, India has felt like home. Over the years, I’ve built strong personal relationships here, particularly with my boss, Rohit Berry, with whom I’ve worked for over 25 years — he’s been more like an elder brother than a colleague.
Q: How have the opportunities for Japanese businesses evolved in India since your arrival?
A: When I started in 1995, Japanese investments were limited, with around 95 companies operating primarily through branch offices or liaison offices, focused on trading. Back then, there was more demand for tax and audit services. Today, things have changed dramatically. Japanese companies now focus more on advisory, particularly M&A, and they’re increasingly acquiring Indian companies outright. They’re also seeking advice on scaling operations, leveraging technology, and forming partnerships with Indian firms and startups. The transition from transactional to strategic engagement has been significant.
Q: How do you view India’s startup and tech ecosystem? Do you expect more Japanese companies to invest here?
A: India’s tech ecosystem is impressive. While global players like the US and Israel also produce cutting-edge tech, what sets India apart is the ‘jugaad’ mindset. Indian startups excel in creating cost-effective, innovative solutions, which is highly attractive to Japanese companies. This frugal innovation enables Indian tech to be accessible in markets like Africa or Southeast Asia, where Japanese companies see potential.
Q: Given the current geopolitical situation, do you think India has an advantage over China for Japanese companies?
A: Yes, absolutely. India offers political and economic stability, which Japanese companies value. The country’s policies toward Japan have been consistent, fostering trust. Japanese firms are increasingly partnering with Indian companies to tap into third markets, particularly the Middle East and Africa, where India’s strong diaspora networks provide a key advantage.
Q: What digital transformations in India have caught your attention, even influencing Japan?
A: India’s rapid adoption of digital payments, particularly through platforms like Paytm, has been remarkable. Japan, still a largely cash-based economy, has looked to India’s QR-code-based model, with platforms like PayPay even adopting similar technology. The simplicity of India’s digital payment system, where merchants only need a QR code to accept payments, has been a standout example of innovation that Japan is now emulating.
Q: Outside of digital and fintech, which other sectors do Japanese companies find promising in India?
A: The automobile sector is key. Japanese firms are optimistic about India’s potential in electric and smart vehicles, especially as the country builds a robust local ecosystem. The auto sector is seen as a space that could leap forward as the global market shifts toward more technology-driven solutions.
Q: In the context of Budget 2025, which sectors do you see as transformative for Japanese investors?
A: Infrastructure is often overlooked but is a critical area where Japanese firms can bring their expertise. Roads, ports, airports, and bridges are all areas of focus, especially as India rebuilds its infrastructure. In energy, renewable energy — particularly solar and wind — is becoming a key area of interest. Additionally, semiconductors are a hot sector, with Japanese companies looking to integrate into India’s emerging semiconductor ecosystem.
Q: What’s your take on India’s position as a semiconductor manufacturer, considering criticism about lagging behind in AI and chip manufacturing?
A: Semiconductors are crucial for India’s economic growth. Look at China — semiconductors played a critical role in its development. But simply investing money isn’t enough. The entire ecosystem — from raw materials to logistics — must be smooth. India must also focus on building a skilled workforce. Initiatives like the India Semiconductor Mission are steps in the right direction, but more investment in training and capability-building is necessary.
Q: You’ve often spoken about the India-Japan business corridor. How do you view the relationship today?
A: Personally, I’ve had a warm and rewarding experience in India. Professionally, I’ve always believed that Japanese companies’ success in India would be a reflection of my own work. At Deloitte, we’re evolving from being just service providers to becoming true partners in our clients’ success. We’re building a robust Indo-Japanese business corridor with both Japanese and Indian professionals to make Deloitte the top choice for Indo-Japanese collaborations.
Q: With nearly three decades of experience, what legacy do you hope to leave behind?
A: My legacy will be to build a sustainable bridge between Japanese and Indian businesses. I want to make Deloitte the first choice for Japanese firms in India, not just because of our expertise, but because we are genuinely invested in their success. We’re also working on strengthening our practice by bringing in more Indian professionals who understand Japanese business culture, and vice versa. Externally, I want to help bridge the cultural and business gap, fostering more effective collaboration between both countries.
Q: Anything else you’d like to share with Indian or Japanese readers and businesses?
A: I’m grateful for the positive impression Indian companies have of Japanese businesses. Many are actively seeking Japanese partners for joint ventures and tech collaborations. My goal is to help bridge the business philosophies of both countries, creating real, sustainable partnerships not just for India, but globally.
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