Japanese Exports to India

This site provides detail information on Japanese Exports to India. The site also focuses on the current development of exports form Japan to India.

Japanese Exports to India 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 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.

Japanese Exports to India have increased to 26.8% due to the huge increase in the export volume of each of the major commodities, like -

• Heavy machines,
• Electronic gadgets,
• Electronic spares,
• Toys,
• Gaming systems,
• Pharmaceutical products,
• Biotechnological products,
• Transport equipments.

Japanese companies are forging joint ventures with local Indian companies to take maximum advantage of India's cheap labor and technological expertise. Huge investments are flowing in for the Indian companies for expansion of capacities. Further, the steep rise of Japanese Exports to India to can be attributed to the cheap cost factor. Thus, Japanese companies are forging ties with Indian companies and expanding production capacities to export goods manufactured in India to other countries. Or in other words, these Joint venture companies are using India as a manufacturing hub for the global market.

Recently, Mr. Kamal Nath, the minister for trade and commerce, India have signed agreements which would facilitate opening of -

• Research Commission on Trade in Agriculture,
• Forestry Products,
• Fishing Products.

As per classified reports, there are about 475 Japanese business establishments operating in India till date. Recently, it has been observed that an increasing number of small and medium size Japanese companies have opened shops in India. These Japanese companies generally only invests but does not necessarily employs Japanese office staffs or workers. 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.