In the desert-like scrub land of Rajasthan, beside a barren stretch of highway, an unlikely oasis appears: an island of Japan Inc.

On more than 445 hectares of land dedicated exclusively to Japanese corporations, titans such as Toyota Motor Corp., Daikin Industries Ltd. and Hitachi Ltd. have clustered together to protect themselves from the vagaries of India's chaotic business landscape.

Located roughly three hours from New Delhi, the sprawling industrial estate provides Japanese companies with largely uninterrupted power and water supplies. It also offers a streamlined license and approval process that bypasses local officials who might ask for bribes.