Japan Inc. is doubling down on Indian talent, shifting from operational support to cutting-edge R&D and innovation. This Japan-India collaboration is certainly something to look forward to.
What is the news?
- Japanese companies like Toyota, Fujitsu, Rakuten, Pioneer, Hitachi, Anritsu, and MUFG Bank are rapidly expanding their Global Capability Centers (GCCs) in India, particularly in Bengaluru.
- India’s Global Capability Centre (GCC) ecosystem is expanding rapidly, with the number of centres projected to grow from 1,700 in 2024 to 2,100 by 2030.
- While US-based GCCs have traditionally led the charge, non-US GCCs are rapidly gaining momentum, growing at an impressive compound annual growth rate (CAGR) of 6.8%. This growth is nearly double that of their US-based counterparts, signalling India’s increasing prominence as a global hub for business services.
- Notably, Japanese companies account for around 5% of India’s GCC ecosystem, primarily focusing on automotive, electronics, and manufacturing.
Why is it interesting?
- This represents a fundamental evolution in the Japan-India tech relationship, from cost arbitrage to innovation partnership. Toyota’s GCC in Bengaluru, for example, is now working on advanced EV battery technologies rather than just back-office operations.
- Japanese firms recognize that India’s talent pool offers not just execution but breakthrough innovation capabilities in areas like AI, mobility tech, and semiconductor design.
Read more: Top 10 Japanese GCCs Fueling Bengaluru’s Tech Boom