India Makes Headway As A Production Base

Bangalore: With China reforming its labor policies, it is no longer the most popular overseas production site for the Japanese companies like Hitachi, Panasonic, among others. This is only compounded by the growing territorial dispute between the two countries and it worsened further when China recently declared “an air defense identification zone” over the islands which Japan deliberately chose to ignore. Taking all this into consideration, ZDNet believes India will emerge as a preferred destination for these Japanese companies that are looking to shift their manufacturing bases to elsewhere.

Masakazu Kuji, executive officer of Hitachi Solutions, the information and telecommunication systems arm of Japan's Hitachi, said in the Indian newspaper Mint that, “India has been a partner of development [for Hitachi] than China in the past”, and he added that “China has been very difficult in terms of political thing and economic side of it [sic]”. Last week, the heavy equipment parent company Hitachi, also announced that it would be investing 47 billion in India till 2015-16 to branch-out from manufacturing in Japan, while the electronics giant Panasonic is a step ahead of others having already ramped up its local Indian production last year.

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