This Week in Asia

<![CDATA[The Japanese are coming: India's 'Detroit of Asia' feels the force of foreign cash]>

Japanese couple Yuto Niinaga and Chiharu Obata travelled thousands of miles for their wedding - to Madurai, a small city in the southern Indian state of Tamil Nadu.

Madurai is neither an exotic locale nor a famed wedding destination, but the pair's affinity with Tamil culture drew them to the temple town.

With the expat bride decked in a traditional Indian yellow silk sari and sporting the red pigment vermilion on her forehead, and the groom wrapped in a silk dhoti, their attire thrilled the local media, which covered the event extensively.

The couple's choice of Madurai is a sign of growing ties between Japan and the Indian state. Obata, a software engineer turned researcher, undertook linguistic research in Tamil Nadu at the Tokyo University of Foreign Studies in 2014, an experience she says intensified her affection for the place. She is one of an growing number of Japanese professionals to have spent time in Tamil Nadu.

Japanese couple Yuto Niinaga and Chiharu Obata travelled thousands of miles for their wedding - to Madurai, a small city in the Indian state of Tamil Nadu. Photo: Handout alt=Japanese couple Yuto Niinaga and Chiharu Obata travelled thousands of miles for their wedding - to Madurai, a small city in the Indian state of Tamil Nadu. Photo: Handout

WHY TAMIL NADU?

India opened its market to global companies in the early 1990s, sparking interest from major Japanese and Korean firms such as LG Electronics, Samsung, Toyota, Lotte, Mitsubishi Motors, Nissan, Hyundai and Yamaha.

Tamil Nadu moved quickly. Successive business-friendly governments as well as close proximity to the outside world through a coastal location and robust infrastructure helped the state become a manufacturing hub. Chennai, the capital of Tamil Nadu, earned the nickname the "Detroit of Asia" for its automotive companies. The city remains one of the world's top 10 car manufacturing centres.

Chennai is also India's second-largest port, and the facilities in its Ennore neighbourhood have been developed exclusively to boost the exports of Japanese firms. Tamil Nadu hosts more than a fifth of the roughly 1,000 Japanese businesses operating in the country, and fresh investment agreements were signed early this year.

Madurai is neither an exotic locale nor a famed wedding destination, but Japanese couple Yuto Niinaga and Chiharu Obata's affinity with Tamil culture drew them to the temple town. Photo: Alamy alt=Madurai is neither an exotic locale nor a famed wedding destination, but Japanese couple Yuto Niinaga and Chiharu Obata's affinity with Tamil culture drew them to the temple town. Photo: Alamy

Japanese firms are currently developing three key industrial parks in Tamil Nadu in partnership with state authorities, incentivised by tax exemptions. Dozens of companies are preparing to set up shop in the zones.

All Nippon Airways (ANA) will in October begin direct flights, seven days a week, between Chennai and Japan with an eye on tourism and trade.

And South Korean firms have also vastly benefited from Chennai's automotive sector. Hyundai has become the single largest original equipment manufacturer for the local industry. The company has pumped in parts worth close to US$3.5 billion since 1998, when it sent 3,000 Korean staff to its plant there.

"Tamil Nadu has been a hub of industrial activity and has been considered an industrially progressive state," a Hyundai spokesman said. "Apart from Hyundai Motor India, many of our ancillaries have also invested in the state."

Robot arms assemble cars at the Hyundai Motor India plant in Tamil Nadu. Photo: Reuters alt=Robot arms assemble cars at the Hyundai Motor India plant in Tamil Nadu. Photo: Reuters

K.V. Kesavan, a distinguished fellow at think tank the Observer Research Foundation and an expert on Japanese studies, says there is "tremendous public interest in Tamil Nadu when it comes to Japan, unlike other Indian states".

A senior state official familiar with the government's deals with foreign firms, who did not wish to be identified, said it was easier to deal with Japanese and Korean firms compared to European and North American ones. Asian negotiators were generally polite and not haughty, he explained.

However, Tamil Nadu now faces increasing competition from neighbouring Andhra Pradesh, which has been pushing hard for foreign investment with tax concessions and improved infrastructure at its Sri City special economic zone 55km north of Chennai. Twenty Japanese firms have plants at the site, including Isuzu Motors, NHK Spring, Kobelco, Nippon, Toray Industries, THK, Mitsui and Mitsubishi. Some firms have said bureaucratic hurdles and a hostile tax regime in Tamil Nadu have caused unease among foreign investors. In 2017, Nissan took the state to international arbitration for withholding investment incentives worth millions.

Tamil Nadu has become home to a large number of Japanese professionals. Photo: Handout alt=Tamil Nadu has become home to a large number of Japanese professionals. Photo: Handout

CULTURAL CONNECTIONS

Whether in Tamil Nadu or Andhra Pradesh, Korean and Japanese residents have had a visible impact on the local cultural scene, and nowhere is it more visible than in the culinary landscape.

Chennai now hosts nearly 50 Japanese and Korean restaurants. One of them, Akasaka, introduced sashimi made from local tuna to Chennai residents in 1996, and it was an instant hit. In recent years the market for such foods has widened beyond expatriates. Sushi and tempura are frequently seen on the menus of upscale restaurants, and supermarkets stock Japanese ingredients such as miso and nori. Korean supermarkets and Japanese hotels dot the city like never before.

About 8,000 Koreans live in Chennai, forming the largest group of expatriates.

Dr Rathi Jafer, director of the InKo Centre that aims to promote inter-cultural exchanges, said India has a good reputation among Koreans who see it as "compassionate, spiritual, large and bustling".

"Earlier, when we had students learning Korean language, it was primarily for business opportunities or employability. Increasingly now, we see a lot of younger people taking up the courses. When we ask them why, they say 'we want to know what the K-pop stars are singing'," said Jafer, adding that there have also been gatherings among Korean music and food enthusiasts.

Chennai has earned the nickname 'Detroit of Asia' for its automotive companies. Photo: Reuters alt=Chennai has earned the nickname 'Detroit of Asia' for its automotive companies. Photo: Reuters

About 30,000 Indians are registered as learning the Japanese language. In southern India, 6,300 people sat the Japanese Language Proficiency Test last year - a necessary ticket to pursue educational or employment opportunities in the country.

Conversely in Japan, movies starring Tamil superstar Shivaji Rao Gaekwad, also known as Rajinikanth, are routinely released and the actor's fans visit Tamil Nadu for screenings of his latest films. The tipping point came in 1995 when his blockbuster movie Muthu became a runaway success, playing at some Japanese cinemas for nearly a year.

Chellappa Sriram, vice-president of the Abk-Aots Dosokai Tamil Nadu Centre, which offers language, business and cultural services for Japanese nationals, says Japanese businesspeople in the state are usually in India for the long haul, unlike their Western counterparts.

"People now see potential in learning Japanese because of the dwindling resources in Japan due to its ageing population," Sriram says. "We see an immense increase in the younger generation's interest in learning more about Japan for their career prospects."

For Obata and Niinaga, they say their bond with Tamil Nadu will last a lifetime.

This article originally appeared on the South China Morning Post (SCMP).

Copyright (c) 2019. South China Morning Post Publishers Ltd. All rights reserved.

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