* ‡ Language ± Japanese ‡ Religion ± Shinto & Buddhism ‡ Literacy Rate ± 99% ‡ Japanese are familiar with the culture of the

people with whom they are dealing.

* ‡ Losing Face concept ± Not to be too direct with Japanese. ‡ Concept of time ± No of years they spend in company. Long term relationship is preferred. ‡ Japanese purchasing behaviour is centered more on the vendors selling the product than on product itself.

* ‡ Risk taking ability is low in Japanese. ‡ While addressing the Japanese it is better to inquire about the well being of their family. ‡ Decision making takes time & they have hierarchy of management to do so.

* ‡ Japanese are extremely group oriented & community based people. ‡ Many Japanese are not comfortable with shaking hands, so it is best to take the cue from them before offering your own hand. ‡ Japanese prefer the use of title & first name should be avoided.

* ‡ Most Japanese do not say ³no´ directly. They phrase it more politely such as ³we will think about it´. ‡ Japanese men are more involved in Business environment as compared to women.

* ‡ Value of Time ± A meeting that may take 3 days to conclude in US will probably take 2 weeks in Japan. ‡ If after signing a contract something goes wrong, then they try to resolve it by mutual agreement. Instead of approaching court in case of disputes they prefer to approach persons who are familiar with similar problems & situations.

‡ Prime Minister Junichiro Koizumi of Japan visited New Delhi for talks with Prime Minister Manmohan Singh in April,2005. ‡ He said: "Japan and India need each other as strong, prosperous and dynamic partners." He described the objective of his visit as "to reinforce the Japan-India ties with a new strategic orientation in a new Asian era."

‡ Addressing an Asian Security conference at New Delhi on January 29,2005, Shri Pranab Mukherjee, the Indian Defence Minister, said: ‡ Indo-Japan relations, which plummeted after India's 1998 nuclear tests, are now positive and robust. ‡ The fillip to Indo-Japanese relations was provided by the August 2000 visit of Prime Minister Yoshiro Mori, the first by a Japanese Prime Minister to South Asia in a decade. ‡

‡ Shri Pranab Mukherjee, the Indian Defence Minister, said: ‡ In his speech he declared, "today IndoJapanese relations also have a strategic importance, which is quite obvious when we glance at the world atlas". Despite the geographical distance between the two, there is a growing acceptance that India and Japan share a certain affinity on a number of issues. India and Japan have a convergence on energy issues and have joint concerns about the security of sea-lines of communications and vital choke points in the Indian Ocean.

‡ Both India and Japan are energy-importing countries. They are dependent on external supplies for keeping their economies sustained and growing. How they could co-operate and help each other in this task? While they have agreed that energy security should be an important component of the bilateral relationship, no concrete action has been taken so far at the governmental and nongovernmental levels to translate this agreement into action on the ground. Such action has to be in the form of brainstorming between the experts of the two countries, the drawing-up of a joint or co-ordinated plan of implementation and giving effect to it.

‡ Indian iron ore is still an important item of export to Japan, but not to the same extent as in the past. The Indian export basket to Japan is still small---iron ore, sea food, textiles and jewellery being the main items. A drive for the expansion and the diversification of the bilateral trade was undertaken after the visit of former Prime Minister Mori in August 2000. Information Technology (IT) products and services were identified as an item, which could have a trigger effect. ‡

‡ Japan-India IT Promotion and Cooperation Initiative was launched and a Japan-India IT summit was held in Japan. Japan liberalised rules for the issue of multiple-entry visas for IT experts from India. It has been estimated that about 50 Indian IT companies have already set up offices in Japan. Despite all these measures, the total value of the export of Indian software products and services to Japan was estimated in the financial year 2002-2003 at an insignificant three per cent of the total value of India's global exports of software products and services. ‡

‡ India has some showcase examples of Indo-Japanese economic collaboration. One could cite in this connection the Maruti car project, the Haldia petrochemical complex and the Delhi Metro presently under construction.

‡ Among the reasons cited for the poor flow of Japanese investments into India are the unpredictability and sluggishness of the Indian decision-making and implementation process; the tendency to unduly politicise the economic decision-making process which often results in each Government reviewing and sometimes reversing the economic decisions of its predecessor; the poor state of infrastructure as compared to China; the inadequate and erratic power supply; the high cost of power supply as compared to China; and the restrictions (now being removed) on foreign investments in the retail and real estate sectors.

India's exports (In US$ million)
IndJapan Exports 1997-98 1998-99 1999-00 2000-01 2001-02


Tot Ind Exports %age 5.41 Exp/tot

1898. 43 2144. 90 35049

1651. 87 2465. 72 33211 4.97

1702. 91 2355. 32 36760 4.63

1794. 48 1842. 19 44147 4.06

1510. 44 2146. 45 43976 3.43

Source: Federal ministry of Commerce, India

India's exports (In US$ million)
Ind-Japan 2003-04 Exports Imports 2004-05

1709 2667 63842 2.67

1977 3005 79247 2.49

Tot Ind Exports %age Exp/tot

Source: Federal ministry of Commerce, India

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