Japan's food sector is increasingly turning to India to offset the challenges of a shrinking and ageing domestic market. The country's Ministry of Agriculture, Forestry and Fisheries (MAFF) has identified agricultural and fishery exports as a key growth area, with India emerging as a primary target.
Government-Led Industrial Transformation
Japan's government has designated 17 important industrial fields for transformation, including agriculture and fisheries. These sectors are encouraged to adopt plant factories and land-based fish cultivation to ensure stable supply despite climate change. The strategy aims to harmonize with foreign markets and maintain steady business growth.
India's Huge Market Potential
Ken Sasaji, Deputy Director General of MAFF, highlighted India's potential: "India has huge market for Japan's food products. It may take time to establish supply network. Be patient of preparation term, afterward supply network will grow steadily." He also noted that related industries such as agricultural machinery, refrigeration facilities, and safe transportation systems are growing alongside food exports.
Major Japanese Companies Expand in India
Kagome, a leading Japanese food processing company specializing in tomato products, entered India in 2018 by setting up a factory. It produces pizza sauce and tomato sauce from Indian tomatoes and plans to build a value chain from raw materials to processing and a wide supply network. Kikkoman, the iconic soy sauce manufacturer, is researching how soy sauce can complement Indian cuisine, with a current focus on Indian Chinese dishes.
Infrastructure and Policy Needs
Sasaji emphasized the importance of infrastructure: "Preparation of infrastructure is important. Especially for food industry clean water is integral. In addition clarification of land rights, tax support and keeping transparency of negotiation are also very welcome for Japan's industry." India's tax reforms and investment incentives are seen as positive steps to attract Japanese investment.
Mutual Benefits and Future Outlook
Both countries are eager to strengthen economic ties. Japan's industry has significant interest in the Indian market, while India offers incentives to accelerate investment. The key to success, according to officials, is sharing and realizing both sides' perspectives. With patience in building supply networks, Japan's food sector expects steady growth in India.
