How trade, investment and infrastructure relations between India and Japan are mutually beneficial to each other?

October 31, 2018

The trade, investment and infrastructure relations form the foundation of the strategic relationship.

Trade

  • Primary exports of India to Japan have been petroleum products, chemicals, elements, compounds, non-metallic mineral ware, fish & fish preparations, metalliferous ores and scrap, clothing and accessories, iron and steel products, textile yarn, fabrics and machinery.
  • The exports of Japan to India are machinery, transport equipment, iron and steel, electronic goods, organic chemicals, machine tools, etc.
  • The trade structure is such that they are mutually complementary. This complementary nature is mutually beneficial for both India and Japan.

Investments and infrastructure

  • Japan had pledged Rs 33,800 crore in government and private sector investments following the first Modi-Abe meeting in 2014.
  • Japan is the biggest sources of investment flows into India, accounting for $28.16 billion in FDI between April 2000 and June 2018.
  • There are 1,305 Japanese companies registered in India, an increase of 76 companies (6% growth) as compared to 1,229 in October 2015.
  • India is one of the greatest recipients of the Japan’s ODA programme.
  • Japan is a big ticket infrastructure projects like Mumbai-Ahmedabad bullet train project, Delhi-Mumbai Industrial Corridor, Delhi Mass Rapid Transit System, Chennai Metro and Dedicated Freight Corridor.
  • Japan is capital surplus state and India is capital deficient. India is providing avenues for the investments for Japan.

The trade, investment and infrastructure relations between India and Japan are mutually beneficial to each other. This mutually beneficial relationship is giving vast avenues for cooperation and collaboration.

   

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