Japan is collaborating with India's Act East Policy and is contemplating investing 13000 Cr in building a Tech-Township in the North-East India. In Feb the Japanese Ambassador had visited Assam in this connection. However, some challenges are there which both Indian and Japanese governments have to resolve.
Challenges
First, the biggest challenge is that the Corona outbreak has to subside. With continuous lockdown, stay-in protocols and vaccine shortage in India, it is difficult for any foreign country to proceed with any investment plan.
Second, all the North-Eastern states have to come together for this purpose, which is a difficult task, as they have their own different kinds of perspectives about regional development.
Third, this region is prone to earthquakes, heavy rainfall and the terrain is of high mountains.
Finally, this involves a co-ordination between Central, different State governments and with the corporate segment of Japan.
Indian government has the responsibility to work out a functional solution to these problems.
Potential for IT MSMEs
This is especially a good opportunity for the MSMEs working in the IT sector, as they have many kinds of business opportunities in the tech-township in both services and products & solutions segments. Further, with Japan's hi-tech knowhow and investment, the IT MSMEs will have a starting advantage in establishing business there.
A possible risk is that the local entrepreneurs may want to have all or most of the advantages for themselves and may not allow the entrepreneurs from other parts of India to establish business there. This has to be worked out.
For the local IT business people, this would be a great opportunity as they don't have to migrate anywhere and can establish an IT business in the North-East itself using the opportunities from Japan.
However, all this can happen only after the Coronavirus wave ends soon. For this, the government has to embark on a vaccinaion for all programme on a war-footing. This has many challenges which have to be worked out on an urgent basis.