The long term plan is to shift the software development base to Bangalore, which will cater to the IT needs of the South Asian market and will operate through Sony's existing IT subsidiary in Bangalore. However, Mr Aiko clarified that no specific time-frame for shifting the software hub had been fixed. He raised concerns over the lack of knowledge of hardware systems among the Indian software professionals. He said that the company had to look at integrating Japanese knowledge in hardware with the Indian software strength. We have to look at both hardware and software development out of India before making it the base for the entire South-Asian region, he said.

Speaking on the sidelines of interactive seminar organised by Ficci, Mr Aiko said that the Indian government had to simplify the tax system to make it transparent and less complex. This will not only help the Indian corporates, but will result in fresh investments flowing into India. We have raised many problems with the Indian government which will help resolve a number of issues. Japanese investors compare India with its neighbours and the government should carefully observe that they are doing to invite fresh investments.

... And board remains divided between China and India
The Sony board in Japan is divided between choosing India or China as the investment destination. Although the number of board members favouring China to India is increasing, it will fast change and we are very optimistic about India now, Mr Aiko said.

"Although we are not making money in India now, we are very keen on being present here," he said. It is a general consensus that India is a growing market and Sony needs to have an increased presence in the country. However, issues like corruption and bureaucracy do hamper investment decisions, when it comes to investing in India, Mr Aiko said.