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Japan increasingly favouring India over China as investment location

Against the backdrop of the global slowdown, Japanese firms are increasingly showing a preference for India as an investment destination over China.

According to Naoyoshi Noguchi, outgoing director-general of the Japanese External Trade Organisation, there has been a three-fold rise in companies from Japan locating operations in India. He said the overarching feeling among Japanese companies is that China is becoming saturated as a market, hence there is a need to diversify into other countries like India.