Indo-Japan SME Collaboration Takes Center Stage at SUWA Industrial Messe 2025

Nagano. July 3, 2025

"The future of Indo-Japan collaboration is not just Government-to-Government or Business-to-Business—it is SME-to-SME," remarked Siddharth Deshmukh, President of the Indo-Japan Business Council (IJBC), during his keynote address at the DTF International Workshop held in Suwa, Nagano, Japan. The session was part of the SUWA Area Industrial Messe 2025, organized by JETRO Suwa to promote regional innovation and cross-border SME engagement.

Sharing the excerpts keynote address

Siddharth Deshmukh, President IJBC, delivering keynote address at the DTF International Workshop in Suwa, Nagano, Japan, as part of the SUWA Area Industrial Messe 2025.

Introduction

It is a great honour to be in Suwa—a city that exemplifies Japan’s rich tradition of precision, craftsmanship, and entrepreneurship. I would like to thank JETRO Suwa and the organizers of this international workshop for creating this meaningful platform.

I am here today not just as the President of the Indo-Japan Business Council, but as a friend of Japan—one who has worked closely with Japanese industries for nearly two decades.

India-Japan: A Trusted Partnership

Since the beginning of diplomatic relations in 1952, India and Japan have built a bond based on trust, shared values, and regional cooperation. Japan is India’s fifth-largest foreign investor, with over $43 billion invested between 2000 and 2024. However, most of this investment has gone to large corporations—Toyota, Honda, Suzuki, Hitachi.

The backbone of Japan’s economy—its SMEs—are still underrepresented in India. And that, I believe, is not a challenge, but a massive opportunity.

The Power of Japanese SMEs

Japanese SMEs (defined as companies with capital under ¥300 million and fewer than 300 employees):

• Make up 99.7% of all Japanese companies

• Employ 70% of Japan’s workforce

• Contribute over half of Japan’s gross value added

In cities like Suwa, this strength is visible in precision manufacturing, high-quality components, and a dedication to craftsmanship. These are exactly the capabilities India needs—and the ones that Japanese SMEs have already successfully taken to countries like Thailand, Vietnam, and Indonesia.

So the question is: Why not India?

 Why Now: Five Compelling Reasons

1. Technology Transfer: Japanese SMEs can provide critical tech capabilities, improving Indian manufacturing and product quality—especially in fast-growing sectors like electric vehicles and automation.

2. Employment Generation: India has the world’s youngest population. Partnerships with Japanese SMEs can generate dignified, high-skill jobs rooted in Japanese values of excellence.

3. Strengthening Supply Chains : Localizing in India helps reduce costs, improve resilience, and diversify operations beyond China.

4. Kaizen & Skill Development : The Japanese philosophy of Kaizen (continuous improvement) can redefine India’s industrial culture through training and knowledge-sharing.

5. Green & Sustainable Innovation : Japan’s leadership in clean tech, energy efficiency, and waste reduction aligns perfectly with India’s environmental goals.

Addressing Hesitations

Yes, India is complex. Some of you have told me:

• “India’s regulations are confusing.”

• “We don’t know where to begin.”

That’s where IJBC comes in. We exist to:

• Guide Japanese SMEs through India’s regulatory framework

• Connect you with the right Indian partners

• Facilitate localization and cultural adaptation

• Help you engage with state and central governments

States like Tamil Nadu, Gujarat, Maharashtra, and Karnataka already have dedicated Japan desks and industrial parks tailored for Japanese companies.

What IJBC Is Doing for You

• B2B Matchmaking Missions

• SME-Specific Market Reports

• Indo-Japan Skill Development Programs

• Hands-on Localization Support

From Suwa to Surat, Nagano to Nagpur—we’re building commercial and cultural bridges.

Personal Message to Japanese SMEs

“India does not just need Japan. India needs you—your skills, your values, your monozukuri spirit.”

“The future of Indo-Japan collaboration is not just G-to-G (government-to-government) or B-to-B (business-to-business)—it is S-to-S: SME-to-SME.”

Let Suwa lead the way. Let’s begin this journey—together.