2. 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%
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%
4. 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)
5. 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.
6. 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
7. GOVERNMENT ROLE IN ECONOMY
Government-business relations are conducted in many ways and
through 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
8. 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.
9. 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
10. 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.
• Japan's 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 world's 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.
11. 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.
12. MAJOR COMPANIES HEADQUARTERED IN
TOKYO
1 Toshiba Corporation
2 Kawasaki Heavy Industries Ltd
3 Honda Motor co. Ltd
4. Nissan Motor co. Ltd
5. Toyota Motors
6. Sony Corporation
13. EXPORTED PRODUCTS
1 Electrical Products
2. Transport Equipment
3. General machinery
4. Chemical Products
5. Metal Products
6. Electronic Products
7. Automobiles
8. Agricultural Products
14. EXPORTS DETAILS
Main 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
15. DIVERSIFICATION
Japan's 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.
17. 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.
18. TRADE BETWEEN INDIA AND
JAPAN
Year 2001 2002 2003 2004 2005 2006 2007
Trade from India to
2.2 2.1 2.2 2.6 3.2 4.1 4.1
Japan
Trade from Japan to
1.9 1.9 2.4 3.0 3.5 4.5 6.1
India
(Billions of USD)
19. 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).
