Trade relations


Since 1952, Japan and India have maintained diplomatic relations and enjoyed cordial relations based on trade and economic and technical cooperation. The focus of Japan's economic relations with India switched from the pre-world war-II import of cotton to the import of iron ore. The relations developed steadily as Japan's imports of ore and exports of manufactured products increased. Japan participated in the Consortium Meeting of India's creditor countries hosted by the World Bank in the year 1958, and embarked on the full-scale assistance to India that has continued to the present.

The relations between India and Japan have been quiet good since the fiscal 1986. The number of Jaanese nationals residing in India was 2,050 (Oct., 1999) while the number of Indian nationals residing in Japan: 9,067 (Dec., 1999) is a good indicator of cooperation between the two nations.

Economic Cooperation between the two nations has been buoyant with Japan's total loans to India amounting to $4,239.0 million in 2004, grant aid were of the order of $ 399.2 million, while technical cooperation totalled to an amount of $ 179.5 million.

With India's push towards greater economic liberalization policies, Japanese corporations' interest in India has risen, and private-sector investment has increased dramatically and it is expected to rise further in future. Official Developmental Assistance(ODA ) is provided to infrastructural sectors like telecommunication, power and transport. Of course, over the years ODA has expanded beyond infrastructure. Example: Recent ODA packages include: Delhi Metro Railway, Yamuna Action Plan and some projects in the Power sector. Japan's assistance under ODA since fiscal 1990-91 to 2001-02 cumulates at ¥ 977.14 bn. Majority of the Japanese companies surveyed said that they are making profits and are "positively considering further expansion of their operations".

is rated as world's second largest market. Japan has provided approximately Yen 2193 billion on commitment basis as ODA to India. The foreign companies that are doing business in Japan have posted high profits. The corridor will allow multimodal. investing in Japan is pretty alluring. The project will be under Japan’s “Special Terms for Economic Partnership” (STEP) scheme. Till the FY 2003-04. to run from one end of the country to another. the joint declaration of Dec 2001 has provided the base for the things to shape up Japanese PM has agreed to give financial support in build $ 5 billion rail corridor between New Delhi and Mumbai and Delhi and Hawrah to speed up infrastructure in India. As far as the infrastructure back-up is Japan. with a fully computerized traffic control.04 million for projects in FY 2003.economywatch. india is still planning for basic reforms. The drawback of Indian economy is that while Japan is planning for the structural reforms. Apart from highly skilled human resources. Japan offers innovative technologies.html . high axle load freight trains.SOCIAL CULTURE: Impact of FDIs For Indian investors. the transportation network is rated as one world's bests. in which India became the largest recipient of the Japanese ODA. Source: http://www.The Government of Japan provided Yen 1250.