JAPANESE ECONOMY AT A GLANCE• Trade Membership : APEC,WTO ,OECD , G-20 ,G-8• GDP : US $ 5.45 Trillion (Nominal)(Rs 2,72,90,000 Crores) US $ 4.30 Trillion(PPP) (Rs 2,15,00,000 Crores)• GDP Growth 0.3%• GDP Per Capita Income US $ 42,840( Rs 21,41,000 Crores )GDP Sector Wise Growth• Agriculture 1.5 %• Industry 22.8%• Services 75.7%• Inflation (CPI) 0.3%• Labour Force 6,56,40,000• Unemployment 4.7 %• Inflation (CPI) 0.3%
INTERNATIONAL TRADE & JAPAN• Total Exports : US $ 756.2 Billion (Rs 37,81,000 Crores)Main Exports Partners :• China 18.8%• USA 16.42%• South Korea 8.13%• Total Imports : US $ 636.8 Billion (Rs 31,84,000 Crores)Main Import Partners:• China 22.2%• USA 10.96%• Australia 6.3%
PUBLIC FINANCES• Public Debt : US $ 10.55 Trillion (Rs 5,27,50,000 Crores)(225.8% of GDP) Highest in the World• Revenues : : US $ 1.638 Trillion (Rs 81 ,90,000 Crores)• Expenses : US $ 2.16 Trillion (Rs 1,08,00,000 Crores)• Annual Economic Aid : US $ 9.7 Billion (Rs 48,500 Crores)• FDI Stock : 161.7 Billion (Rs 8,07,000 Crores)• Forex Reserves : US $ 4.154 Trillion (Rs 5,77,000 Crores)
OLIGOPOLISTIC NATURE OF JAPANESE ECONOMY• In Japan major industries of domestic demand are : Automobile ,Banking ,Electronic Goods, Industrial goods• Japanese economy is dominated in each sector by few players.• Many of these players are diversified conglomerates having a formidable presence everywhere .• In Japanese language these are known as Kempentsku• Therefore the possibility of quality of services & offerings being dominated by few players is very high.• Therefore Japanese govt takes utmost care to ensure that injustice is done to consumers & market through constant regulation.
IMPLICATIONS OF OLIGOPOLISTIC NATURE• Some of the possible effects of Oligopolistic nature of economy are 1) Cartel arrangements 2)Price Leadership 3)Sales Maximization Model• Some of the dominant players in Japanese economy sector-wise are:• Automobile Sector: Toyota ,Mitsubishi,Suzuki,Yamaha,Nissan Motors, Kawasaki• Consumer Electronics: Sony ,Toshiba, Sansui, Canon, Casio, Panasonic• Banking :Nomura Securities, Bank of Tokyo-Mitsubishi UFJ• Heavy Industrial Production :Bridgestone, Alpine Electronics, JX Holdings Inc, Nippon Mining
GOVERNMENT ROLE IN ECONOMYGovernment-business relations are conducted in many ways andthrough numerous channels.Role of various Ministries:- Ministry of Finance Ministry of International Trade and Industry Ministry of Transportation Ministry of Construction Ministry of Health and Welfare Ministry of Posts and Telecommunications
Taxation• Japan ranks 15th of 183 countries in the Ease of Doing Business Index 2010.• Japan has one of the smallest tax rates in the developed world.• After deductions, the majority of workers are free from personal income taxes. Value-added tax rate is only 5%, while corporate tax rates are high.• Relatively complicated tax system• Variety of tax rates for corporations.• Taxes and stamp revenues form the bulk of government revenues.
BUSINESS OPPORTUNITIES - JAPAN• The Pharmaceutical Industry• The Information Technology (IT) Industry• The Energy Industry• The Social Infrastructure Industries, Railway, Water Purification, Civil Engineering and Construction• The Manufacturing Industry• The Retail Industry
TECHNOLOGY• A leading nation in scientific research, particularly technology, machinery and biomedical research.• Nearly 700,000 researchers share a US$130 billion research and development budget, the third largest in the world.• Japans more prominent technological contributions are in the fields of electronics, automobiles, machinery, earthquake engineering, industrial robotics, optics, chemicals, semiconductors and metals.• Japan leads the world in robotics production and use, possessing more than half of the worlds industrial robots.• The Japanese automotive industry is one of the most prominent industries in the world.• Automobile player – Toyota, Honda, Mazda, Suzuki, Nissan , Subaru and many others.• Majority of car makers and Technology goods in India are imported from Japan.
GLOBAL REACH• Tokyo is the hub for all the industries.• Some of the industries setup in Tokyo are as follows.1. 2247 Heavy-machinery and machine-parts makers.2. 10550 Electrical equipment makers.3. 1457 Steel companies.4. 3016 paper mills.
MAJOR COMPANIES HEADQUARTERED INTOKYO1 Toshiba Corporation2 Kawasaki Heavy Industries Ltd3 Honda Motor co. Ltd4. Nissan Motor co. Ltd5. Toyota Motors6. Sony Corporation
EXPORTED PRODUCTS1 Electrical Products2. Transport Equipment3. General machinery4. Chemical Products5. Metal Products6. Electronic Products7. Automobiles8. Agricultural Products
EXPORTS DETAILSMain Exports Partners: China – 18.8% USA – 16.42% South Korea – 8.13% India – 6.4% To USA – Agricultural Products To India – Automobile Products To China – Electronic Products Total Exports – US $ 756.2 Billion
DIVERSIFICATIONJapans Rapid Evolution to an Industrialized Country :• During the post-war era, Japan has experienced a drastic change in its economic status and in the role of agriculture in the society.• Its economy has grown to the second largest in the world. This change has been accompanied by social changes in the area of agriculture and food systems in Japan.
CONTI..• Technological Diversification of Japanese Industry• Petroleum and diversification• Electricity generation• Nuclear sectors diversification
INDIA AND JAPAN RELATION• The establishment of the Strategic and Global Partnership between India and Japan in December 2006 elevated relations to a new level.• Political, Defense and Security Cooperation; Comprehensive Economic Partnership; Science & Technology Initiative; People- to-People exchanges and cooperation in Regional/Multilateral flora.• There are several dialogues between India and Japan at senior official level covering specific issues of foreign policy, economic cooperation, urban development, ICT cooperation, energy cooperation, high technology trade etc.
TRADE BETWEEN INDIA ANDJAPAN Year 2001 2002 2003 2004 2005 2006 2007Trade from India to 2.2 2.1 2.2 2.6 3.2 4.1 4.1JapanTrade from Japan to 1.9 1.9 2.4 3.0 3.5 4.5 6.1India (Billions of USD)
CONTD..Japan currently ranks sixth largest in cumulative foreign direct investment flows into India. Japanese companies have made actual investments of US$ 4.63 billion (4% of total FDI inflows into India in US$) between April 2000 and November 2010. Japanese companies, like Sony, Toyota, and Honda have manufacturing unit houses in India and with India’s economic development Some of the Japanese flagship investment projects to India include the Dedicated Freight Corridor (DFC) Project, the Delhi- Mumbai Industrial Corridor (DMIC) Project and cooperation to establish the Indian Institute of Technology, Hyderabad (IITH).
DOUMO ARIGATOUGOZAIMASU………. (THANK YOU VERY MUCH)