India Beckons Japanese Electronics Manufacturers: Vedanta's Investment Proposal

18 Oct, 2023

India Beckons Japanese Electronics Manufacturers: Vedanta's Investment Proposal

Vedanta Limited, led by Anil Agarwal, has extended an invitation to Japanese firms to collaborate and invest in India's burgeoning "electronics manufacturing revolution." This move aligns with Gujarat's efforts to strengthen the bond between Japan and India, as announced in a recent company filing.

The surge in demand for electronics in India can be attributed to the government's initiatives, including Make in India, Digital India, and the 100 Smart Cities Mission, which all aim to promote local manufacturing, digitalization, and technological advancement across various sectors. Akarsh K Hebbar, the global managing director of Vedanta's semiconductor and display business, emphasized these points during a gathering of Japanese industry leaders at the Embassy of India in Tokyo and Osaka during a two-day roadshow.

Hebbar also noted that the expanding reach of the internet and the rising adoption of e-commerce have further fueled the demand for electronics. With a population exceeding 1.4 billion, India presents a substantial market opportunity for global electronics companies.

Vedanta is currently in discussions to establish a semiconductor chip manufacturing facility in Dholera, Gujarat. Hebbar extended an invitation to Japanese leaders to join forces with Vedanta in creating India's inaugural electronics manufacturing hub within the state. He expressed the hub's potential to attract numerous small and medium-sized businesses and generate over one lakh jobs.

He further emphasized, "There is an $80-billion opportunity for companies willing to come and invest in this electronics manufacturing hub. Vedanta will serve as the anchor for Japanese companies interested in investing in India."

Vedanta, a natural-resources conglomerate, has a well-established relationship with Japan, with one of its group companies, AvanStrate Inc., headquartered in the country. In late 2022, the company entered into agreements with 30 Japanese technology firms to promote the development of India's semiconductor and glass display manufacturing ecosystem.