Comparing Two Economies

vs.

Presented to :Dr. Kesari Singh

Presented by : Ankusha
1971401149
Overview- India
• It is the world's fifth-largest economy by nominal GDP and the third-largest by purchasing power
parity (PPP)
• The economy slowed in 2017, due to shocks of "demonetisation" in 2016 and introduction of
Goods and Services Tax in 2017.
• Nearly 60% of India's GDP is driven by domestic private consumption and continues to remain the
world's sixth-largest consumer market.
• India is officially called as the Republic of India and lies in South Asia.
• India's GDP is also fueled by government spending, investment and exports.
• India's largest trading partners are China, USA, UAE, Saudi Arabia, Switzerland, Germany, Hong
Kong, Indonesia, South Korea, and Malaysia.
• The service sector makes up 55.6% of GDP and remains the fastest growing sector, while the
industrial sector and the agricultural sector employs majority of the labor force.[
• Nearly 70% of India's population is rural whose primary source of livelihood is agriculture, and
contributes about 50% of India's GDP.
Overview - Japan
• Highly developed free-market economy.
• Japan, which is officially called as Nippon, is an island country that lies in East Asia.
• Japan is smaller in area compared to India.
• It is world's second largest developed economy.
• Japan is the world's third largest automobile manufacturing country.
• World's largest electronics goods industry.
• Japan is the world's largest creditor nation.
• Japanese manufacturing and industry is very diversified, with a variety of advanced industries
that are highly successful and accounts for 24% of the nation's GDP.
• Japanese economy faces considerable challenges posed by a declining population, which peaked
at 128 million in 2010 and has fallen to 126.5 million as of 2019.
• Japanese agricultural sector accounts for about 1.4% of the total country's GDP , only 12% of
Japan's land is suitable for cultivation.
• The Tokyo Stock Exchange is the third largest stock exchange in the world by market
capitalization, as well as the 2nd largest stock market in Asia, with 2,292 listed companies
Comparing two currencies
• 1 United States Dollar =70.76 Indian Rupee
• 1 United States Dollar =109.38 Japanese Yen On 13th December , 2019
• 1 Indian Rupee = 1.55 Japanese Yen

Comparison of area
Japan is about 9 times
Japan = 377,973 km² smaller than India.
India = 3,287,263 km²
Comparison of Cost of living

Japan is 2.9 times more

expensive than India.
Comparison of Cost of living
QUALITY OF LIFE COMPARISON
If you lived in India instead of Japan, you would:
Country Japan India
Tokyo is the financial center . Mumbai is the financial center.

Currency Japanese yen (JPY, ¥) Indian rupee (INR, ₹)

Fiscal year 1 April – 31 March 1 April – 31 March

Country group Developed/Advanced Developing/Emerging

High-income economy Lower-middle income economy

Population 126,529,100 (2018) 1.353 billion (2018)

Population below poverty line 16.1% (2013 est.) 60.4% on less than $3.20/day (2011)

Main industries Motor vehicles Textiles , chemicals , food processing

electronic equipment ,agribusiness ,handicrafts ,petroleum ,
machine tools petrochemicals , gems and jewellery ,
steel non ferrous metals ships leather , iron , ore , steel , aluminium ,
chemicals cement ,mining , metals , retailmachinery
textiles ,information technology ,construction ,
processed foods . financial services , electric power ,
consumer goods , pharmaceuticals ,
automotive , telecommunications , real
estate , paper , transportation equipment
Country Japan India
Labour force 69.08 million (August, 2019) 519,469,299 (2019)
60.9% employment rate (August, 45.4% employment rate (2018)
2019)
Labor force by occupation Agriculture: 3% Agriculture: 44%
Industry: 25% Industry: 25%
Services: 72% Services: 31%

GDP $5.154 trillion (nominal, 2019 est.) $2.936 trillion (nominal; 2019 est.) $11.326
$5.747 trillion (PPP, 2019 est.) trillion (PPP; 2019 est.)

GDP rank 3rd (nominal; 2019) 5th (nominal; 2019)

4th (PPP; 2019) 3rd (PPP; 2019)

GDP by sector Agriculture: 1.1% Agriculture: 15.4%

Industry: 30.1% Industry: 23%
Services: 68.7% Services: 61.5%
(2017 est.) (2017 est.)

Population below poverty line 60.4% on less than $3.20/day (2011) Population below poverty line
3.7% in extreme poverty (December 16.1% (2013 est.)
Country Japan
GDP by component Household consumption: 55.5%
Government consumption: 19.6%
Investment in fixed capital: 24%
Investment in inventories: 0%
Exports of goods and services: 17.7%
Imports of goods and services: −16.8%
(2017 est.)
Exports $697.2 billion (2017)
Export goods Motor vehicles 14.9%
Iron and steel products 5.4%
Semiconductors 5%
Auto parts 4.8%
Power generating machinery 3.5%
Plastic materials 3.3%
Imports $670.97 billion (2017)
India
Household consumption: 59.1%
Government consumption: 11.5%
Investment in fixed capital: 28.5%
Investment in inventories: 3.9%
Exports of goods and services: 19.1%
Imports of goods and services: −22%
(2017 est.)
$330 billion (2018–19)
Agricultural products 12.8%
Fuels and mining products 13.8%
Manufacturers 70.5%
Others 2.9%
$514 billion (2018–19)
Country Japan India
Main export partners United States 20.2% Arab League 17.37%
China 17.6% European Union 17.34%
European Union 11.4% United States 15.88%
South Korea 7.2% ASEAN 11.38%
Taiwan 6.1% China 5.08%
Other 37.4% Hong Kong 3.94%
Japan 1.47%
South Korea 1.43%
Other 26.11%
Import goods Petroleum 16.1% Agricultural products 8.1%
Liquid natural gas 9.1% Fuels and mining products 30%
Clothing 3.8% Manufacturers 51.7%
Semiconductors 3.3% Other 10.2%
Coal 2.4%
Audio and visual apparatus 1.4%

Main import partners China 25.8% Arab League 19.88%

European Union 12.4% China 13.68%
United States 11.4% ASEAN 11.53%
Australia 5% European Union 11.35% ,United States
South Korea 4.1% 6.92% ,Hong Kong 3.50% ,South Korea 3.26%
Other 41.3% ,Japan 2.48% ,Other 27.4%
Country Japan India
Budget > Revenues $1.99 trillion $172.10 billion
Ranked 2nd. 12 times more than India Ranked 23th.
Budget surplus > deficit -10% of GDP -5% of GDP
Ranked 171st. Twice as much as India Ranked 143th.
Budget > Expenditures $2.58 trillion $263.80 billion
Ranked 2nd. 10 times more than India Ranked 17th.

Consumer spending 59.59 57.31

Ranked 83th. 4% more than India Ranked 90th.

Government spending 912.39 billion 98.9 billion

Ranked 3rd. 9 times more than India Ranked 13th.

Innovation 26.4 18.9

Ranked 12th. 40% more than India Ranked 36th.

GDP deflator 92.88 125.5

Ranked 169th. Ranked 121st. 35% more than Japan
INDIA- Monetary policy JAPAN- Monetary policy
The Reserve Bank of India, the central banking institution of Bank of Japan controls the monetary policy of the
India, controls the monetary policy of the Indian currency. Japanese currency.

Current repo rate is 5.15%. -

The reverse repo rate is 4.90% -

Current Bank Rate is 5.40%. Current Bank Rate is -0.10

The current CRR is 4% p.a. -

Current SLR is set at 18.50% p.a. -

Forign exchange reserves US $451billion Forign exchange reserves US $1371billion

Japan- International trade
Top exports
• Vehicles: US$154.1 billion (20.9% of total exports)
• Machinery including computers: $148 billion (20.1%)
• Electrical machinery, equipment: $109.4 billion (14.8%)
• Optical, technical, medical apparatus: $41.3 billion (5.6%)
• Iron, steel: $29.9 billion (4.1%)
• Plastics, plastic articles: $26.1 billion (3.5%)
• Organic chemicals: $18.9 billion (2.6%)
• Mineral fuels including oil: $13.3 billion (1.8%)
• Ships, boats: $12.6 billion (1.7%)
• Gems, precious metals: $12 billion (1.6%)
Top imports
• Mineral fuels including oil: US$174.6 billion (23.3% of total imports)
• Electrical machinery, equipment: $101 billion (13.5%)
• Machinery including computers: $72.9 billion (9.7%)
• Optical, technical, medical apparatus: $27.6 billion (3.7%)
• Pharmaceuticals: $25.5 billion (3.4%)
• Vehicles: $24.6 billion (3.3%)
• Ores, slag, ash: $22.4 billion (3%)
• Organic chemicals: $18.2 billion (2.4%)
• Plastics, plastic articles: $16.9 billion (2.3%)
• Clothing, accessories (not knit or crochet): $14.7 billion (2%)
India-International trade
Top Exports
• Mineral fuels including oil: US$48.3 billion (14.9% of total exports)
• Gems, precious metals: $40.1 billion (12.4%)
• Machinery including computers: $20.4 billion (6.3%)
• Vehicles: $18.2 billion (5.6%)
• Organic chemicals: $17.7 billion (5.5%)
• Pharmaceuticals: $14.3 billion (4.4%)
• Electrical machinery, equipment: $11.8 billion (3.6%)
• Iron, steel: $10 billion (3.1%)
• Cotton: $8.1 billion (2.5%)
• Clothing, accessories (not knit or crochet): $8.1 billion (2.5%)
Top imports
• Mineral fuels including oil: US$168.6 billion (33.2% of total imports)
• Gems, precious metals: $65 billion (12.8%)
• Electrical machinery, equipment: $52.4 billion (10.3%)
• Machinery including computers: $43.2 billion (8.5%)
• Organic chemicals: $22.6 billion (4.4%)
• Plastics, plastic articles: $15.2 billion (3%)
• Iron, steel: $12 billion (2.4%)
• Animal/vegetable fats, oils, waxes: $10.2 billion (2%)
• Optical, technical, medical apparatus: $9.5 billion (1.9%)
• Inorganic chemicals: $7.3 billion (1.4%)
Japan- International trade India-International trade

Japan Exports to : India Exports to: India imports from :

• China: (19.5% of Japan’s total exports) • USA(15% of total exports) • China (16.46% of total
• United States: (19%) • UAE(11.46%) imports)
• South Korea (7.1%) • Hongkong (4.90%) • USA (5.6% of total imports)
• Taiwan: (5.7%) • China (3.6% of total exports) • UAE(5.5%)
• Hong Kong: (4.7%) • UK(3.19%) • Saudi Arabia (5.1%)
• Thailand: (4.4%) • Singapore(3.10%) • Switzerland (4.2%)
• Singapore: (3.2%) • Germany(2.67%) • Indonessia(3.4%)
• Germany: (2.8%) • Vietnam(2.43%) • Korea Republic (3.3%)
• Australia: (2.3%) • Bangladesh(2.42%) • Germany (3.08%)
• Vietnam: (2.2%) • Belgium(2.03%) • Iraq (3.01%)
• Indonesia: (2.1%) • Australia (2.7%)
• United Kingdom: (1.9%)
• Malaysia: (1.9%)
• Netherlands: (1.7%)
• Mexico: (1.6%)
References
• https://en.wikipedia.org/wiki/Economy_of_India
• https://en.wikipedia.org/wiki/Economy_of_Japan
• https://www.mylifeelsewhere.com/cost-of-living/japan/india
• https://www.google.com/search?q=indian+rupee+symbol&rlz=1C1CHBF_enIN85
8IN858&sxsrf=ACYBGNSs9Qu80_O4filwiTFi2zuI5xqw4g:1576253066452&source=
lnms&tbm=isch&sa=X&ved=2ahUKEwjTluiggLPmAhWpyzgGHbl9BaQQ_AUoAXoE
CBgQAw&biw=1536&bih=754#imgrc=3hbnVp22bpLLZM:
• https://www.mylifeelsewhere.com/compare/japan/india
Thank You.