November 2, 2007, Kolkata

Naoyoshi NOGUCHIDirector General,

Japan External Trade Organization (JETRO), New Delhi

Seminar on Facilitating Indian Investments in Japan

Advantages of Doing Business in Japan

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Who We Are

1. Promoting foreign direct investment into Japan (INVEST JAPAN)

2. Facilitating economic growth in developing countries through trade promotion

3. Cooperating in Economic Partnership Agreement (EPA)

4. Assisting Japan's small and medium-sized enterprises (SMEs)

5. Supplying Japan with foreign economic information

6. Promoting cross-border business tie-ups in high-tech and other key industry sectors

7. Helping Japanese firms expand overseas and aiding efforts to protect intellectual

property

8. Researching developing economies (IDE)

Outlines JETRO's overall sphere of activities

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Examples of Indian Firms Expanding in the Japan Market

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Covansys, Cades, Exim Soft, HCL, Hughes Soft, i-Flex, i-Gate,Infosys, L&T, Mastek, Mind Tree, Network Program, NIIT, Nucleus,Patni, Pentasoft, Polaris, PSI, Satyam, Savy, SRM, TCS, Tata Elxsi,Wipro, ZenSar, (Total more than 80 firms)

ICT

Pharma

Ranbaxy, Torrent, Zydus, Accutest Research, Lupin

Auto

Minda Industries, Tata Auto Comp, Hindustan Motors

Other

Cactus Communications, New Indian Insurance, State Bank of India, TERI, United Phosphorus, VFS Global, Steer Engineering

M&A by Indian firms

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・ Ranbaxy entered Japan in 2002 by taking 10% equity stake in a generic company “Nihon Pharmaceutical Industry Co., Ltd.” The firm increased its equity stake in Nihon Pharmaceutical from 10% to 50% making it a joint venture company.

・ Zydus Cadila acquired 100% stake of Nippon Universal Pharmaceutical Ltd in April 2007.

・ Lupin has acquired 80 per cent stake in Kyowa Pharmaceuticals Industry Co., Ltd. in Japan in October 2007.

Why Japan?Why Japan?- World’s Second-largest Market -- World’s Second-largest Market -

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Japan’s GDP Compared to Other Countries- World’s Second-largest Market -

Source ： Formulated by JETRO based on data from "World Economic Outlook Database" (April, 2006), IMF

(US$ billion)

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GDP Comparison of Japan’s Regionswith Some Countries

- World’s Second-largest Market -

(US$ billion)

Note: GDP data for Japan's regions from 2003; for other countries, 2005Sources ： "Prefectural Economic Almanac" (March 2006), Economic and Social Research Institute, Cabinet Office; "World Economic Outlook Database"(April, 2006), IMF; "China Statistical Abstract 2006," National Bureau of Statistics of China

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Why Japan?Why Japan?- Favorable business climate -- Favorable business climate -

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New Corporate Law to StimulateBusiness Changes (enacted in May 2006)

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- Favorable business climate -

■Easier to establish new companies - abolition of minimum capital requirements

■Flexible corporate management rules - corporate organizational structure

- Articles of incorporation, etc.

■Flexible merger compensation (from 2007)- introduction of cash-out merger- triangular merger in cashless transactions, etc.

65. 57041. 7

45. 318. 4

22. 223. 3

33. 314. 7

24. 37. 2

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0 10 20 30 40 50 60 70(%)

High cost of business

High real estate prices

High taxes

Closed transaction networks

Complex administrative procedures

Slow administrative procedures 19952005

Impediments to investment in Japan(comparison of answers in 1995 and 2005, multiple answers)

- Favorable business climate -

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How Can JETRO Help Your Business?How Can JETRO Help Your Business?

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JETRO’s FDI Promotion Activities

Dissemination of information overseas— Seminars, website, pamphlets

Business Partnering Events

Invest Japan Business Support Center (IBSC)— Providing consulting services and temporary office space

Dissemination of Information overseas — Seminars, website, pamphlets

Business Partnering Events

Invest Japan Business Support Center (IBSC)— Providing consulting services and temporary office space

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Dissemination of information overseas

Symposiums, Seminars and Business Conferences-JETRO holds numerous symposiums, seminars and conferences in cities worldwide2006-7: Invest Japan symposium & Seminar (London, Hanover, Seoul, Singapore and Silicon Valley, New Delhi, Bangalore, Tokyo, etc.)

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Website “Investing in Japan”-JETRO provides information on benefits of the Japanese market, the investment environment in various regions and Q&A about procedures etc.

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- How can JETRO help your business ? -

http://www.investjapan.org

Business Partnering Events

JETRO BIOLINK Forum - BioJapan (Yokohama, Sep. 2007)-JETRO supported 70 clusters from 21 countries

CEATEC Japan 2007 (Makuhari, Oct. 2007)-JETRO supported 35 companies from 12 countries set-up booths

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Nanotech Japan 2007 (Tokyo, Feb. 2008)-JETRO will support 15 companies from all around the world

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Business Partnership Events

Industrial Tours-JETRO organizes tours of Japan’s key industrial regions for foreign business people interested in investing in JapanFY2006: Microfabrication industry (Okayama Pref. : Nov. 2006) ICT industry (Ishikawa Pref. : Feb. 2007) FY2005: Auto industry (Tochigi Pref.) Semiconductor industry (Ibaragi Pref.)

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Invest Japan Invitation Program – Business partnering and seminar tours –-JETRO offers seminars and field trips, and also arranged meetings and business match-makingFY2006: Medical device industry (Dec. 2006) Automotive parts and technology industry (Feb. 2007) Tourism industry (Mar. 2007)FY2005: Robot technologies industry Information security industry Food service industry

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- How can JETRO help your business ? -

Invest Japan Business Support Center (IBSC)Locations: Tokyo, Osaka, Yokohama, Nagoya, Fukuoka, Kobe

FacilitiesConsulting Services ● Marketing

● Laws and regulations

● National and local government incentives

● Cost simulation

● Incorporation procedures

● Employment and labor issues

● Free temporary office space (Tokyo IBSC has 35 spaces)

● Well-stocked library

● Exhibition space and auditorium

Over 300 companies used the IBSCsCurrently consulting over 1,000 companies

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Indian Firms That Utilized IBSC to Set-up Business in Japan

　　Torrent Pharmaceuticals Location of parent company: Ahmedabad, Gujarat

Established: April 2006

Business: Pharmaceutical

　　Cactus Communications Location of parent company: Mumbai

Established: July 2007

Business: English language solution (editing, training, transcription)

                             

        

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Indian Firms That Utilized IBSC to Set-up Business in Japan

　　CADES DigitechLocation of parent company: Bangalore

Established: June 2006

Business: Engineering and R&D support by Information Technology

　　Minda Industries Ltd.Location of parent company: Gurgaon, Haryana

Established: April 2007

Business: Manufacturing components for two & four wheeler

                             

        

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For more information, please contact:

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JETRONew Delhi

4th Floor, Eros Corporate Tower, Nehru Place, New Delhi 110019, INDIATEL:91-11-4168-3006 FAX:91-11-4168-3003Naoyoshi_Noguchi@jetro.go.jpKei_Kawano@jetro.go.jp

JETROBangalore

Unit No. 407-408, Prestige Meridian II, 4th Floor, 30 M. G. Road, Bangalore-560 001, INDIATEL:91-80-4113-8168 FAX:91-80-4113-8169Kazumasa_Kuboki@jetro.go.jp

JETROMumbai

95, Maker Chambers VI, 9th Floor, Nariman Point, Mumbai 400021, INDIATEL:91-22-2202-8342 FAX:91-22-2204-8507Masashi_kono@jetro.go.jp

Thank you

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Naoyoshi NOGUCHIDirector General,

Japan External Trade Organization (JETRO), New Delhi