Japanese Manufacturers Favor India For Business Development, China Falls To Third Place Behind Vietnam: Survey

In a recent survey conducted by the Japan Bank for International Cooperation (JBIC), India has emerged as the top choice for promising business development among Japanese manufacturing companies for the second consecutive year.

The survey, which garnered responses from 534 manufacturers spanning industries like automobiles, chemicals, and electronics, revealed that 48.6 per cent of the companies considered India a key destination for medium-term business growth.

The primary driver for India's strong performance is attributed to the growth potential of the local market, as reported by Nikkei Asia.

Shinichi Itagaki, the director of JBIC's strategic research department, highlighted the "deterioration of China's investment environment" as a significant factor influencing India's favorable position in the survey.

In contrast, China witnessed a decline in its ranking, with only 28.4 per cent of companies considering it a promising destination—the lowest score ever recorded in the survey.

Factors such as escalating tensions with the US, economic slowdown, and the strengthening of anti-espionage laws played a role in diminishing China's attractiveness for Japanese manufacturers.

Meanwhile, Vietnam secured the second spot, rising from fourth place, with 30.1 per cent of respondents considering it a promising destination for business development.