India and Japan are on a fit growth route, with economic collaboration between the two nations attaining new statures. Japan is now the largest foreign direct investment (FDI) funder to India, with an important portion of its Overseas Development Assistance (ODA) focused on India.
A big part of this strength is engrossed in the Northeast region, reflecting Japan's thoughtful interest in it.
In an exclusive interview with Business North East (BNE), Rajeev Gupta, Chairman of the North East India Regional Committee of the Indo-Japan Business Council (IJBC), shed light on the developing economic partnership and future potential for meaning between the two countries.
When asked about enhancing the efficiency of Japanese-funded schemes like the Japan International Cooperation Agency (JICA) initiatives, Gupta recognised the tests faced in the application. Citing the Guwahati Water Supply Scheme as an example, he elucidated that JICA's role was limited to funding, while implementation issues arose due to lapses in implementation activities.
"JICA was just the funding agency where the implementing partners went wrong. However, with the Dhubri-Phulbari Bridge currently being built with Japanese assistance, we anticipate a transformative shift in trade and commerce across the region," said Gupta.
The Dhubri-Phulbari Bridge, once completed, is expected to be a game-changer, easing better connectivity between Assam and Meghalaya and meaningfully increasing economic action in the Northeast.
Deliberating chances for the Northeast to invest abroad, Gupta emphasised the potential of human capital as a valuable export. He emphasised that countries like Japan and South Korea are in crucial need of a skilled workforce, which presents a profitable chance for the region.
"One of the biggest investments the Northeast can make is in human capital. By preparing our workforce with the necessary skills and sending them to countries like Japan and South Korea, we can attain dual benefits. Firstly, these countries gain from our skilled labour, and secondly, remittances from overseas workers can bring substantial financial inflows back home," explained Gupta.
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He pointed out Kerala as a successful example, where remittances amount to approximately INR 21.6 lakh crores annually. Gupta believes a similar focus on human capital in the Northeast could lead to a transformative economic journey for the region.
With the Assam government's recent decision to send 50,000 workers to Japan, the question arises whether the state's workforce owns the necessary skills to meet Japan's stringent requirements. Addressing this concern, Gupta stressed the need for progressive training and language skills.
"Japan has a growing demand for skilled professionals. By 2040, they will need 6,40,000 engineers and, as of today, require 320,000 eldercare workers. While the scale of opportunity is vast, Japan's workforce primarily communicates in Japanese. Therefore, proficiency in the language is crucial for effective integration and better job prospects," Gupta noted.
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He underscored the importance of emerging particular training programs to equip Assamese workers with technical skills and language capabilities. With planned investments in workforce development, Assam could not only meet Japan's labour needs but also create a sustainable pipeline for economic growth through foreign occupation.
The evolving India-Japan partnership is poised to drive mutual prosperity, with a clear focus on infrastructure development and human capital conversation. As both nations deepen their teamwork, chances for the Northeast to play a pivotal role in this partnership continue to grow.
With plans like the Dhubri-Phulbari Bridge and government-backed workforce programs, the stage is all set for a new era of economic appointment that could redefine the India-Japan association in the years to come.
FIRST Business Portal addressing the potential of business capability of North East Region.
