Japan’s Omron Corp. is ramping up production in India, aligning itself with the country’s push to become a manufacturing and exports hub for global corporations.

The company plans to boost manufacturing of healthcare and automation products — among its core businesses — in India, preparing to tap incentives on offer from the Modi administration. Omron’s healthcare division has already begun making blood pressure monitors in the southern city of Chennai for local sales, with plans to also export them to Europe and Africa, Chief Executive Officer Junta Tsujinaga said in a media briefing.

While Omron has had a presence in India for three decades, it’s so far done relatively little manufacturing in the country. Prime Minister Narendra Modi’s government is offering subsidies and other incentives to modernize the economy by wooing global electronics makers such as Omron.

“India is not only for the local business, but also it should be a global business,” Tsujinaga, 60, said through an interpreter from the southern tech hub of Bangalore, where Omron has an automation research and development center.

India is a key part of 93-year-old Omron’s bid to jump-start revenue growth after three straight years of falling sales. Its shares have lost more than half their value since a 2021 peak, though they’ve recouped some losses this year as the company’s earnings improved.

While still a small part of Omron’s revenue, India is showing promise. The company aims to increase revenue in the country at an average annual rate of 12% through the 2030 fiscal year, and its sales trajectory is already exceeding that target, Tsujinaga said.

Omron expects India’s rapid economic growth and rising manufacturing activity to fuel demand for its factory automation products, Tsujinaga said, declining to give specifics around planned investments. The company’s expansion in India “will be done in steps,” he said. It’s already a supplier to iPhone assembler Foxconn Technology Group’s operations in the country.

India’s fledgling semiconductor ambitions represent another potential growth avenue. The chipmaking industry uses Omron’s products that control factors such as temperature and vibration, helping to improve production yields and cut back on defects. India currently has five operational chip packaging plants and it’s seeking to attract more assembly and wafer manufacturing facilities.

The Indian market has its challenges. Its price-sensitive manufacturers, especially small and mid-sized firms, can be reluctant to invest in automation if expected returns are slow to materialize.

Omron also faces stiff competition from lower-cost Chinese rivals. In a bid to stand out, Omron is complementing its equipment with services such as engineering and training.

“The real value is going to come from the value-add engineering that we are bringing together with the component,” said Sameer Gandhi, managing director of the company’s local industrial automation unit.