IT industry body Nasscom has signed a letter of intent with the Hiroshima Government to work together in creating Japan-India IT corridor to facilitate partnerships between companies from both nations.
“The Hiroshima Government will co-invest with Nasscom in creating Japan India IT Corridor that could be at the forefront of promoting B2B cooperation and talent transfer from India to Japan,” Nasscom said in a statement.
This project will be formally initiated by early 2019 on mutual consent, it added.
Both parties will undertake a process of thorough due diligence with the assistance of relevant partners and local companies, focused on talent availability; local demand potential and; policy benefits and funding support to determine the mutual viability and long-term feasibility of setting up an IT corridor in Hiroshima, the statement said.
“Both parties agreed to setup IT corridor in Hiroshima with incentive package that could be extended to the Indian tech companies that come forward to adopt this platform while forming partnership with Japanese companies,” the statement said.
It added that the IT corridor will allow Indian companies — with their prowess in software services — help Japanese manufacturing firms adopt digital transformation and create innovative product and solutions lines.
The partnership is also expected to help create IT jobs in Hiroshima and India as well as facilitate talent transfer from India to Japan.
“For achieving sustainable growth in Hiroshima, what we lack is a cluster of IT and software industry,” Atsuhito Uemaru, Chief of Innovation Promotion, Hiroshima Prefectural Government, said.
Uemaru added that through the collaboration, Hiroshima would like to serve as a gateway for Indian companies to enter the Japanese market and vice versa and “to build an ecosystem beneficial for the growth of both Indian and Hiroshima companies”.
Gagan Sabharwal, Senior Director (Global Trade Development) at Nasscom said the alliance will act as a “building block” towards strengthening the Indo-Japan relationship.