From Bengaluru to Osaka: Advancing Indo-Japanese Collaboration
Kumar Ravi, Senior Vice President-BCIC, 0
In a strategic move that echoes Prime Minister Narendra Modi’s call for deeper state-to-prefecture partnerships, the Bangalore Chamber of Industry and Commerce (BCIC) signed a landmark Memorandum of Understanding (MoU) with the City of Osaka. Speaking about the significance of this Indo-Japanese Collaboration through the BCIC–Osaka Partnership is Kumar Ravi, Senior Vice President-BCIC. In an insightful conversation with CEO Insights, Ravi said this collaboration marks a significant step toward empowering MSMEs, fostering startup ecosystems, and driving bilateral cooperation at the local level. As the only Indian chamber to formalize a partnership with Osaka City, Ravi says that BCIC is now at the forefront of enabling Indo-Japanese collaboration in advanced manufacturing, future medicine, and vocational training. Below are key insights that delve into the motivations behind this MoU.
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Why was this particular MoU signed between BCIC and Osaka, and how does it align with the PMs call for state prefecture partnerships?
BCIC primarily aims to promote business relationships between Japanese and Indian small and medium enterprises. Osaka, Japan's former capital, has emerged as a major industrial hub with leading companies in heavy machinery, pharmaceuticals, and life sciences concentrated in the region, including Toyota's factory in nearby Nagoya. Likewise, this collaboration focuses exclusively on manufacturing rather than software, as Osaka government officials recognize their manufacturing strengths and want to avoid areas where they are less competitive. This partnership aligns with India's Make in India initiative and PM's objectives, with Osaka specifically aiming to share their manufacturing skills and innovations with Indian small and medium enterprises to help them benefit from Japanese expertise in industrial production.
What holds greater significance is the interaction between cities and prefectures - which are called states in India. When exchanges reach the local level, business promotion and other activities become more accessible, enabling commerce to expand on a larger scale.
Could you highlight the new opportunities that could be unlocked from this partnership?
From my perspective, Japan wields exceptional strength in the field of future medicine, which represents a medical sector experiencing significant innovation. In particular, Osaka City has established partnerships with private corporations, initiating collaborative efforts where both private enterprises and government entities work together on future medicine initiatives, including genetics, genomics, and various advanced medical treatments. Specifically, they operate the Nakanoshima Qross, which serves as a distinctive hub designed for the commercialization of future medicine by uniting medical institutions, corporations, startups, and support organizations within a single facility.
They aim to address upcoming developments in medical science, specifically medical technology including genomic medicine and genetic research. Additionally, they focus on AI and IoT applications in regenerative medicine, seeking to foster global contributions by delivering advanced healthcare solutions to patients worldwide, not just within Japan.
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Also, BCIC aims to bring their research into maintaining hand and body hygiene through water pressure technology. We plan to identify companies in these specific sectors that are eager to engage in collaborative efforts and innovation partnerships with Japanese firms. Subsequently, we plan to establish regular online business-to-business networking sessions. As these initiatives take shape, I anticipate that numerous companies will seek to establish cross-border exchanges in both directions.
In particular with MSMEs, what are the challenges that could be solved through this partnership and how it could benefit more MSMEs in India?
In the manufacturing sector, Japanese companies maintain a significant lead over us, having extensively implemented enterprise resource planning systems and IoT technologies for mechanization and robotization. In contrast, India has benefited from a larger workforce, but this advantage comes with its own challenges.
Currently, the Indian manpower in large lack the necessary competencies to operate the sophisticated machinery that these companies
utilize. This skills gap presents a substantial obstacle. However, when Japanese firms provide proper training and skill development to our workforce, operating these machines becomes much more manageable.
This represents an opportunity where Japanese corporations could assist small and medium-sized businesses by offering vocational and technical training programs to help workers master machine operations.
Another significant challenge we face is the communication barrier. Japanese professionals often have limited English proficiency, making it extremely difficult to work without knowledge of the Japanese language. To address this issue, numerous companies and educational institutions in Bengaluru have begun offering Japanese language courses.
The Chamber of BCIC is also interested in establishing Japanese language training programs to equip recent college graduates and engineers with necessary skills. Having these language abilities would significantly facilitate employment opportunities with Japanese companies, especially those based in Japan. In terms of compensation, these professionals could potentially earn twice or even more than their current salaries in India, given Japan's severe shortage of available workers. Japan faces increasing demand for foreign talent due to its aging demographic and declining birth rates, making India an attractive source of skilled professionals. Hence, we believe that India's technological capabilities and software expertise, combined with Japan's manufacturing strengths, could create an excellent foundation for strategic partnership and collaboration between the two nations.
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Looking ahead, what role will this collaboration play in strengthening commercial focus, particularly in the manufacturing sector?
Both India and Japan possess certain strengths, and they are committed to supporting startups by inviting them to participate in various events, whether online sessions, acceleration programs, or funding opportunities. From my perspective, I believe BCIC will function effectively as a startup in this environment.
Our organization has established a startup committee that provides discounted membership rates to emerging businesses. Additionally, we host annual startup award ceremonies to recognize achievements in this sector. We aim to expand such initiatives in the coming years, with a particular focus on supporting SMEs, as these businesses benefit most from the guidance and assistance our chamber provides. Furthermore, while we currently maintain a representative office in Tokyo, we are planning to establish a presence in Osaka as well. As the chairman of international business, I played a key role in launching our Japanese operations four years ago. Moving forward, I am considering the establishment of additional offices in Dubai and Singapore as part of our strategy to expand our business chamber locations globally.
How have your international experiences and long-standing work with global and local businesses influenced your approach to guiding Indian MSMEs toward global competitiveness?
My first overseas trip took me to Japan, which sparked a deep fascination with the country. Moreover, our business focuses extensively on India market entry strategies, assisting international companies that want to establish operations here. This specialization has given me immense experience working with multinational corporations and understanding their specific needs when entering the Indian market. It's crucial to recognize that our interactions with these foreign entities also represent our nation's professional image.
Furthermore, I have provided consulting services for liaison offices and wholly-owned subsidiaries of international companies for nearly 15 years. Through my partnerships with various counsel generals and trade commissioners in Bengaluru, I have developed a clear understanding of their requirements and where they need support. While large corporations typically have sufficient resources and don't need extensive guidance, smaller companies face different challenges. We aim to support SMEs in India, particularly addressing their research and development gaps. These companies often lack investment in R&D capabilities and require assistance with skills development and training programs.
Additionally, I have observed that there is an absence of standard operating procedures, or SOPs. The lack of standardization exists primarily since these businesses operate as proprietary entities, functioning essentially as one-person operations. There's no established management framework within these small and medium-sized businesses. This area requires significant guidance and consultation. These enterprises face difficulties due to financial constraints - they cannot budget for management consultants or hire managers to oversee operations. However, to compete globally, they must implement standardized practices, or they will struggle to succeed.
This represents an opportunity where Japanese corporations could assist small and medium-sized businesses by offering vocational and technical training programs to help workers master machine operations.
We aim to support SMEs in India, particularly addressing their research and development gaps.
Another significant challenge we face is the communication barrier. Japanese professionals often have limited English proficiency, making it extremely difficult to work without knowledge of the Japanese language. To address this issue, numerous companies and educational institutions in Bengaluru have begun offering Japanese language courses.
The Chamber of BCIC is also interested in establishing Japanese language training programs to equip recent college graduates and engineers with necessary skills. Having these language abilities would significantly facilitate employment opportunities with Japanese companies, especially those based in Japan. In terms of compensation, these professionals could potentially earn twice or even more than their current salaries in India, given Japan's severe shortage of available workers. Japan faces increasing demand for foreign talent due to its aging demographic and declining birth rates, making India an attractive source of skilled professionals. Hence, we believe that India's technological capabilities and software expertise, combined with Japan's manufacturing strengths, could create an excellent foundation for strategic partnership and collaboration between the two nations.
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Looking ahead, what role will this collaboration play in strengthening commercial focus, particularly in the manufacturing sector?
Both India and Japan possess certain strengths, and they are committed to supporting startups by inviting them to participate in various events, whether online sessions, acceleration programs, or funding opportunities. From my perspective, I believe BCIC will function effectively as a startup in this environment.
Our organization has established a startup committee that provides discounted membership rates to emerging businesses. Additionally, we host annual startup award ceremonies to recognize achievements in this sector. We aim to expand such initiatives in the coming years, with a particular focus on supporting SMEs, as these businesses benefit most from the guidance and assistance our chamber provides. Furthermore, while we currently maintain a representative office in Tokyo, we are planning to establish a presence in Osaka as well. As the chairman of international business, I played a key role in launching our Japanese operations four years ago. Moving forward, I am considering the establishment of additional offices in Dubai and Singapore as part of our strategy to expand our business chamber locations globally.
How have your international experiences and long-standing work with global and local businesses influenced your approach to guiding Indian MSMEs toward global competitiveness?
My first overseas trip took me to Japan, which sparked a deep fascination with the country. Moreover, our business focuses extensively on India market entry strategies, assisting international companies that want to establish operations here. This specialization has given me immense experience working with multinational corporations and understanding their specific needs when entering the Indian market. It's crucial to recognize that our interactions with these foreign entities also represent our nation's professional image.
Furthermore, I have provided consulting services for liaison offices and wholly-owned subsidiaries of international companies for nearly 15 years. Through my partnerships with various counsel generals and trade commissioners in Bengaluru, I have developed a clear understanding of their requirements and where they need support. While large corporations typically have sufficient resources and don't need extensive guidance, smaller companies face different challenges. We aim to support SMEs in India, particularly addressing their research and development gaps. These companies often lack investment in R&D capabilities and require assistance with skills development and training programs.
Additionally, I have observed that there is an absence of standard operating procedures, or SOPs. The lack of standardization exists primarily since these businesses operate as proprietary entities, functioning essentially as one-person operations. There's no established management framework within these small and medium-sized businesses. This area requires significant guidance and consultation. These enterprises face difficulties due to financial constraints - they cannot budget for management consultants or hire managers to oversee operations. However, to compete globally, they must implement standardized practices, or they will struggle to succeed.