Japanese Expats Find Comfort in Indian Town Hotels Amid Industrial Boom

Vithalapur, a small industrial town in Gujarat, is fast becoming a home away from home for Japanese auto engineers and managers. Hotels with names like Osaka Palace are now serving ramen, tempura, and sushi to cater to the Japanese workforce that has settled here for multi-year assignments. The town, located 75 km east of Gandhinagar, has grown rapidly due to increased foreign investment in Indian manufacturing, a focus of Prime Minister Narendra Modi’s economic policies. Honda opened its motorcycle unit here nearly ten years ago, while Suzuki’s plant, operational for eight years, recently started producing electric cars. Along with these auto giants, numerous Japanese suppliers and industrial companies have established operations in Vithalapur. Japan’s direct investment in India reached $2.5 billion in the year ending March 31, a 27% increase from four years ago, with much of the investment directed toward the auto and electronics sectors. The influx of Japanese professionals has created a demand for specialized housing and hospitality, giving rise to hotels designed specifically for expats. Hotels such as Mizuki Ryokan, Midori, and the 110-room AJU Imperial—short for All Japanese Utility—have become popular among Japanese residents. These hotels offer comforts that remind guests of home, including Japanese signage, imported sushi, and high-end Toto washlet toilets, allowing them to focus on work without worrying about daily adjustments. The AJU Imperial alone accommodates around 100 Japanese expats at any given time.

However, adapting to life in Gujarat is not without challenges. Many locals in the state follow strict vegetarian diets due to Jain and Hindu cultural practices, making it difficult for Japanese residents to find familiar foods like meat and seafood. The state also has one of India’s strictest alcohol regulations, requiring foreigners and hotels to obtain special permits to buy liquor. Even after approval, purchases are rationed and must be renewed regularly. Prakash Yadav, founder and managing director of the AJU Imperial, said, “We want our guests to feel at home so they can focus on their work. But obtaining a liquor license has been a long process. Until then, guests have to travel three hours to Ahmedabad to buy their monthly stock.” Yadav has been waiting for the permit since 2019, highlighting the bureaucratic challenges faced by hotels catering to foreign residents. The town’s growth has also attracted major hotel chains. Hyatt is planning to open a 108-room property in Vithalapur this year, signaling confidence in the town’s expanding demand for foreign-friendly accommodations. For Japanese expats, these hotels are more than just lodging—they provide a cultural bridge, helping them adapt to India’s local customs while maintaining comfort and familiarity. This development in Vithalapur illustrates how industrial growth and foreign investment can transform even small towns, creating spaces where global employees can live and work efficiently.

As Vithalapur continues to attract Japanese professionals, the town’s hotels are set to play a key role in supporting the workforce, combining hospitality with cultural sensitivity to meet the unique needs of international residents.