Companies are rushing to set up operations in India, eager to secure a foothold in the market of 1.2 billion people.
The number of Japanese firms operating in the country totaled 926 as of Oct. 1, up from 438 in early 2008 and 812 in 2011, with most of them in the automotive industry, according to data compiled by the Japanese Embassy in India. The figure looks set to exceed 1,000 by mid-2013.
Still, Japanese firms' China presence is far greater, with some 22,000 companies operating there as of late 2010. However, a growing number are considering shifting some manufacturing to other countries, including India, as the Senkaku Islands dispute hurts operations in China.