India Japan Trade Relations

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This site provides detail information on India Japan Trade Relations. The site also focuses on the current development of trade between India and Japan.

India Japan Trade Relations is as old as post world war II era. The trade relations between India and Japan flourished after the establishment of diplomatic ties, especially after the World War II. Japan resurrected form the debacle of the World War II loss with the help of India's iron ore export. Japan reciprocated India by providing yen loans to India in 1958, first of its type, by Japanese government. And as a matter of fact since then, Japan is India's largest aid donor.

The present robust economic growth of India got caught on Japanese investment radar. As a result of good India Japan Trade Relations, Japan has now turned up as the third-largest FDI facilitator in to India. Further, India Japan Trade Relations have helped India to bring in US$ 2,153 million into its domestic market. Although, Japans contribution to India's FDI inflow is 6% but the quantum is rising steadily, especially in the Indian Financial Market. Japanese Equity investments is on the rise and the quantum of investment is around US$ 4.9 billion. During the financial year 2005-2006 the India and Japan trade was to the tune of US$ 6 billion. India Japan Trade Relations ranks fifth amongst all trading partners that India have. The positive part of the India Japan Trade Relations have facilitated growth in presence of Japanese companies in India. To complement such growth a good number of Indian companies have also opened their shops in Japan and the numbers are rising steadily.

A few notable agreements and convention signed between India and Japan to further cement the cordial relations between the two countries are -

  • Air Service,
  • Culture and heritage,
  • Economic ties,
  • Commerce,
  • Avoidance of Double Taxation,
  • Cooperation in the field of Science and Technology,
  • Students exchange programme.
Japan and India are natural ally and as such the year 2007 has been marked as the Indo-Japan friendship year.