trade relationship between india and japan

1. TRADE RELATIONSHIP BETWEEN
INDIA & JAPAN
By:
PEDA BABU VADIYALA
2015MBA0155
CENTRAL UNIVERSITY OF KARNATAKA

2. Japan
• Japan is an island nation in the Pacific Ocean with dense cities,
imperial palaces, mountainous national parks and thousands of
shrines and temples. Shinkansen bullet trains connect the main
islands of Kyushu (with Okinawa's subtropical beaches), Honshu
(home to Tokyo and Hiroshima’s atomic-bomb memorial) and
Hokkaido (famous for skiing). Tokyo the capital, is known for
skyscrapers, shopping and pop culture.
• Capital: Tokyo
• Currency: Japanese yen
• Prime minister: Shinzo Abe
• Population: 127.3 million (2013)

3. Introduction
• Trade between Japan and India is said to have
begun in the 6th century when Buddhism was
introduced to Japan. Indian culture, filtered
through Buddhism, has had a great impact on
Japanese culture, and this is the source of the
Japanese people's sense of closeness to India.

4. Contd..
• After World War II, in 1949, Indian Prime
Minister Jawaharlal Nehru donated two
Indian elephants to the Ueno Zoo in Tokyo.
This brought a ray of light into the lives of the
Japanese people who still had not recovered
from defeat in the war. Japan and India signed
a peace treaty and established diplomatic
relations on 28th April, 1952. This treaty was
one of the first peace treaties Japan signed
after the World War II.

5. Contd..
• Ever since the establishment of diplomatic
relations, the two countries have enjoyed cordial
relations. In the post World War II period, India's
iron ore helped a great deal Japan's recovery
from the devastation. Following Japanese Prime
Minister Nobusuke Kishi's visit to India in 1957,
Japan started providing yen loans to India in
1958, as the first yen loan aid extended by
Japanese government. Since 1986, Japan has
become India's largest aid donor, and remains so.

6. Contd..
• Trade between India and Japan at $ 18.51
billion, Tokyo accounts for a 2.34% share in
Indian global trade with petroleum products,
oil meals, marine products, gems and
jewellery and iron ore being the principal
commodities of exports to Japan while
machinery, iron and steel, electronic goods,
transport equipment and project goods are
the major items that India imports.

7. Indian Exports to Japan
• Agricultural products,
• Fresh Fruits and dried fruits,
• Fruit juices and concentrates,
• Vegetables,
• Oilseeds,
• Vegetable oils and fats,
• Edible nuts,
• Sugar and honey,
• Grains and Pulses,
• Wheat,
• Iron Ore
• Chemicals

8. Contd..
• Tea,
• Coffee,
• Spices and herbs,
• Tobacco,
• Leather garments and goods,
• Handicrafts,
• Carpets,
• Cashew,
• Fisheries products,
• Cotton,
• Animal feed.

9. Contd..
• The block buster item from India remains
Indian seafood products, especially Indian
shrimps. Japan is the largest importer of
Indian shrimps.

10. Contd..
• Indian mangoes are getting huge popularity in
Japan. Moreover, Indian mangoes are of same
quality but are much less expensive than
crops from the south East Asian countries.
• During 2011-12, India’s mango exports to
Japan stood at 70 tonnes worth $0.18 million.

11. India Imports from Japan
• Machinery
• Plastic
• Transport equipment
• Electronic goods
• Iron and steel
• Project goods
• Metal

12. Contd..
Japan-India Trade (Yen: billion)
Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Trade from
India to
Japan
352 472 491 544 348 497 543 559 690 739
Trade from
Japan to
India
388 518 723 819 591 792 882 845 839 861

13. Direct Investment from Japan (Yen: billion)
Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Direct
Investme
nt from
Japan
29.8 59.7 178.2 542.9 344.3 241.1 181.4 222.8 210.2 219.3
Contd..

14. Economic Assistance
• Loan: 118.64 billion yen
• Grants: 0.217 billion yen
• Technical Cooperation: 3.78 billion yen

15. Cultural Relations
• The Japanese have a very good opinion of India,
they recognize India as TENJUKU (the land where
Buddha was born).
• Both governments "Japan-India Exchange Year
2007" both in Japan and in India to
commemorate the 50th anniversary of the
Cultural Agreement.
• The year 2012 marked the 60th Anniversary of
the Establishment of Diplomatic Relations
between Japan and India.

16. Contd..
• The tradition and social values of India and
Japan are similar and to commemorate the
long and good friendship between India and
Japan, the government of both the countries
have marked the Year 2007 as India and Japan
Friendship year.

17. Number of Residents
• Number of Japanese nationals residing in
India: 8,313 (as of October, 2014)
• Number of Indian nationals residing in Japan:
24,524 (as of December, 2014)
• From 838 in 2008 it has gone up to 1804
Japanese companies in 2012, They have
branches in India.

18. Bilateral Treaties and Agreements
• Treaty of Peace (1952)
• Agreement for Air Service (1956)
• Cultural Agreement (1957)
• Agreement of Commerce (1958)
• Convention for the Avoidance of Double Taxation
(1960)
• Agreement on Cooperation in the field of Science
and Technology (1985)
• Japan-India Comprehensive Economic
Partnership Agreement (2011)

19. Contd..
• Agreement between Japan and the Republic of
India on Social Security (2012)
• Agreement between the Government of Japan
and the Government of the Republic of India
Concerning the Transfer of Defence Equipment
and Technology (2015)
• Agreement between the Government of Japan
and the Government of the Republic of India
Concerning Security Measures for the Protection
of Classified Military Information (2015)

20. Contd..
• As of 2013, bilateral trade between India &
Japan stood at US$16.31 billion & is expected
to reach US$50 billion by 2019-20.
• In the year 2007, the Japanese Self-Defence
Forces and the Indian Navy took part in a joint
naval exercise in the Indian Ocean, known as
Malabar 2007.

21. Contd..
• In October 2008, Japan signed an agreement
with India under which it would provide the
latter a low-interest loan worth US$4.5 billion
to build a SHINKANSEN bullet train railway
project between Delhi and Mumbai.
• This is the single largest overseas project
being financed by Japan and reflected
growing economic partnership between the
two nations.

22. Contd..
• India is also negotiating to purchase
US-2 AMPHIBIOUS aircraft for the Indian
Navy.

23. Year
2007-
08
2008-
09
2009-
10
2010-112011-12 2012-13 2013-14
2014-
15
2015-16
(Apr-Mar)
India's export
to Japan
3.86 3.02 3.63 5.09 6.33 6.09 6.81 5.38 4.66
India’s Total Export 163.13 185.29 178.75 251.13 305.96 300.27 314.40 310.33 262.29
%Share 2.37 1.63 2.03 2.07 2.07 2.03 2.17 1.73 1.77
India's import from
Japan
6.32 7.89 6.73 8.63 12.10 12.51 9.48 10.13 9.85
India’s Total Import 251.65 303.69 288.37 369.77 489.32 491.94 450.20 448.03 381.00
%Share 2.52 2.60 2.34 2.33 2.47 2.54 2.11 2.26 2.58
India-Japan
bilateral trade
10.18 10.91 10.36 13.72 18.43 18.61 16.39 15.51 14.51
Percentage Change 36.5 7.2 -5.04 32.4 34.3 1.00 -11.9 (-) 5.36 (-) 6.4
(Dollar billion)
Contd..

24. Year
Japanese FDI in India (million
US$)
% Change
2001 150 (-) 14.3
2002 146 (-) 2.7
2003 124 (-) 15.1
2004 139 12.1
2005 266 91.4
2006 512 92.5
2007 1506 194.1
2008 5551 268.6
2009 3664 (-) 34.0
2010-11 2864 (-) 21.8
2011-12 2326 (-) 18.8
2012-13 2786 19.8
2013-14 1718 (-) 38.36
2014-15 2084 21.3
2015-16 2614 25.4
Contd..

25. Contd..
• Japan 4th largest investor in India with a share
of 8% of total FDI from 2000-2013.
• Japan investments in automobiles, electrical,
service, telecom.
• Japanese companies such as Sony, Toyota,
and Honda have manufacturing facilities in
India.
• Maruti - the car that “Drives India Home”
since 1980s.