Based on presentations at a seminar hosted by KPMG Consulting on 16 June 2026, this article outlines the key considerations for Japanese companies seeking to enhance their operations and strengthen governance in the Indian market.
India is increasing its presence in global markets, driven by both its historical and geopolitical background and its economic growth. For Japanese companies, India is not merely a manufacturing base. Enhancing operations and building a robust governance framework are also fundamental to sustainable growth.
To understand Indian diplomacy and the economy, it is important to recognize three principles that guide the country’s conduct: pride, autonomy and pragmatism. India has demonstrated a willingness to deepen cooperation with Japanese companies while pursuing a multidirectional diplomatic approach.
Local partnerships and regulatory compliance are among the factors that determine the success of entering the Indian market. Strategies that address challenges involving people, markets and regulations through measures such as joint ventures with local companies and the appointment of local talent are described as effective.
For Japanese manufacturers, an operations strategy requires appropriately defining the division of roles between Japan and local operations and adapting design changes and development processes to local needs. Case studies show how this can be done. The combination of centralized information management and rapid decision-making is considered important for strengthening governance.
To enhance the resilience of Indian subsidiaries, companies need a framework that combines an appropriate balance between delegation of authority and oversight, the use of local talent, and standardized risk response, while achieving both localization and transformation at headquarters.