708-Chaudhari Technical Institute, Gandhinagar - Gujarat ...

A
GLOBAL / COUNTRY STUDY AND REPORT
ON
“DIFFERENT ASPECTS OF JAPAN”
SUBMITTED TO:
Gujarat Technological University
IN FULLFILLMENT OF REQUIREMENT
OF THE AWARD FOR THE DEGREE OF
MASTERS OF BUSINESS ADMINISTRATION (MBA)
UNDER THE GUIDANCE OF:
Prof. Bhumika Raval (Assistant Professor)
Prof. Megha Bakhai (Assistant Professor)
SUBMITTED BY:
(BATCH: 2011-13)
MBA SEMESTER – III/IV
CHAUDHARI TECHNICAL INSTITUTE
GANDHINAGAR.

STUDENT’S DECLARATION
We, the students of Chaudhari Technical Institute (Batch 2011-2013), hereby
declare that the report for Global/Country Study report entitled “Different Aspect Of
Japan” is a result of our own work and our indebtness to other work publications,
references, if any, have been duly acknowledged.
Place: Gandhinagar
Date:

PREFACE
“Experience is the best teacher”
Teaching gives the knowledge of theoretical aspects of management but from the
Global Country Report we get knowledge of management field in different country &
their main sector. The aim of this report is to introduce the fundamentals and the basic
principles of business in different sector of particular country Japan.
The Global Country Report gives us knowledge regarding the sector which has much
opportunity for business for India and Gujarat. From this report we get the knowledge of
particular sectors rules, law, procedures, policies, and it is very useful to us in the
development of practical skill required of a manager and an aid to prospective
employment.
This saying has played guiding role in including in global country report of curriculum of
the MBA program of the Gujarat technological University this report and study real
business environment. We are thankful to Gujarat technological University for giving us
such a valuable opportunity.
This practice learning of MBA program develops of feeling about the difficulties
challenges in the business world, only theory knowledge does not import complete
education practical knowledge to all meaning to education to fulfill this objective of
practical learning of MBA program. In this direction we have tried our level best to
present a project report as a Global Country Report.

ACKNOWLEDGEMENT
The satisfaction and the happiness that accompanies the successful completion of only
task would be incomplete without expression of appreciation and gratitude to the people
who made it possible. Thought this acknowledgement we express our sincere gratitude
towards all those people who have helped us in the preparation of this project, which
has been a learning experience.
Indeed we consider it as a pleasant duty, though equally difficult to acknowledge the
motivating efforts of several people who have helped us in bringing this dissertation
report to find its delight.
We would like to thanks Gujarat technological university for giving us such a wonderful
opportunity for studying about other country and company this experience will be
beneficial for us in future also.
We would like to thank our HOD Prof. Amit Patel, we express our deep love and thanks
to almighty to Ms. Bhumika Raval (Assistant Professor) & Ms. Megha Bakhai (Assistant
Professor) and all the staff members who have guided us in undertaking this project
also thank other faculties of Chaudhari Technical Institute who helped us directly or
indirectly during our project.

EXECUTIVE SUMMARY
The research for “Global Country Report titled “Different Aspects Of Japan” is carried
out to study the future opportunity for the business development of Japan. Japan is an
island situated in East Asia and its capital is Tokyo. The currency of Japan is Yen. It is
also known as Nippon which means “the land of the rising sun”. The Japanese flag has
a red circle in the middle which symbolizes the red sun on a white background. Japan is
made up of four main islands and over 4,000 little ones.
This report shows the geographical, economy and finance, culture, land & climate, food,
language, clothing and various industries of Japan.
Demographic profile includes Population, Age Structure, Birth rate & Death Rate, Major
Cities Population, Sex Ratio, Infant Mortality Rate, Life Expectancy At Birth, Religions,
Languages, Regions, Household Pattern, Education Level.
The PES Analysis of Japan in this report provides the theory of the analysis of the
political, social and economical climate of Japan.
The different economic sectors of Japan is related to import export of Japan’s
agriculture, banking, manufacturing, health care, retail, etc. and includes unemployment
rate, growth rate and contribution.
The trade and commerce of Japan has third largest population over the globe, so the
consumer market at a large has the opportunity for trading and commerce. It also has

the opportunity to India for trading and commerce and relation of two country for export
and import.
This report also shows the study of the economic overview of Japan and business
overview of international trade level and the trade relation & business values of
Japanese Product with Gujarat also which shows the benefits and outline about the
difference of the culture in Japan and in India.

Table of Content
SR.
NO.
PARTICULAR
PAGE
NO.
1 Introduction of Japan country 1
2 Demographic profile of Japan 4
3 PESTEL Analysis 19
4 Different Economic sector Of Japan 51
5 Overview of Industry, Trade & Commerce 64
6 Economic overview of Japan 78
7 Business overview of Japan & International trade level 95
8 Present trade relation & business volume of Japanese
product with Gujarat
9 Present trade relation & business volume of Japanese
product with India
99
113

List of Table
SR.
NO.
PARTICULAR
PAGE
NO.
1 Population 5
2 Age structure 6
3 Birth rate & death rate 7
4 Major cities - population 8
5 Sex ratio 9
6 Infant mortality rate 10
7 Life expectancy at birth 11
8 Population of students 17
9 Age Structure 28
10 Median Age 28
11 Urbanization 28
12 Major cities population 28
13 Ethnic Groups 29
14 Religion 29
15 Literacy Rate 29
16 The Lunar Calendar in Japan 41
17 Introduction of Japan economy 51
18 Economic data in Japan 52
19 Unemployment rate 53
20 Agricultural Sector Contribution in Japan 54

21 Growth in Japan 55
22 Unemployment rate 56
23 Inflation rate in Japan 57
24 Banking sector growth in Japan 57
25 Manufacturing sector growth in Japan 59
26 Manufacturing sector GDP in Japan 59
21 Health care sector GDP in Japan 61
22 Health care sector growth in Japan 61
23 Retail sector in Japan 62
24 Japan import and export 72
25 List of the largest trading partners of Japan 76
26 Japan-India Trade 92
27 Japan trade with other countries (2011-12) (Million yen) 94
28 Japanese Companies in Gujarat 99
29 Name of company in Gujarat 100
30 Maruti Suzuki India Limited 109
31 Sales of Maruti Udyog Limited 112
32 Japan's Merchandise Trade with India( Percentage
Share)
123
33 Location wise business establishment of Japan in India 125
34 FDI Flows with Respect to Japan, China and India ( 1990-
2010)
129

List of Chart
Sr.
no.
Particular
PAGE
No.
1 Population 5
2 Age structure 6
3 Birth rate & death rate 7
4 Major cities - population 8
5 Sex ratio 9
6 Infant mortality rate 10
7 Life expectancy at birth 11
8 Religions 12
9 Judicial System 21
10 Unemployment rate 54
11 Contribution in Japan 54
12 Growth in Japan 55
13 Unemployment rate 56
14 Inflation rate in Japan 57
15 Banking sector growth in Japan 58
16 Manufacturing sector growth in Japan 59
17 Manufacturing sector GDP in Japan 60
18 Health Care Sector GDP In Japan 61
19 Health care sector growth in Japan 62
20 Retail sector in Japan 63

21 Japan’s Economic Relationship 66
22 Japan’s trade in India 71
23 India’s trade in Japan 71
24 Japanese FDI in India 72
25 Share to Japanese total trade of China and of the US 93
26 Japan trade with other countries (2011-12) 94
27 State wise Japanese Business Establishment in India 113
28 Volume of world merchandise exports, 1990-2013 Indices, and
1990=100
29 Growth in volume of world merchandise trade and GDP, 2005-
13 (Annual % change)
30 Quarterly World exports of manufactured goods by product,
2008Q1-2011Q4 Year-on-year % change
31 Real GDP growth and trade of euro area economics, (2008-11)
Annualized % change over previous
114
117
124
126
32 FDI inflow and outflow 129

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INTRODUCTION OF JAPAN COUNTRY
Introduction
Japan is a country situated in Asia. It is also known as Nippon which means
“the land of the rising sun”. The Japanese flag has a red circle in the middle
which symbolizes the red sun on a white background. Japan is made up of
four main islands and over 4,000 little ones
Geography
Full country name: Japan
Population: 126,475,664 (World Fact book, 2011)
Border countries: none
Climate: Japan has four distinct seasons, with cold winters and hot
summers. The north-eastern island of Hokkaido is markedly cooler
with temperatures below zero for most of the winter. The southern
islands have a more tropical climate. June to September can be hot
and humid. It can snow in winter, but this is infrequent south of
Tokyo.
Terrain: the geography of Japan is very distinctive, with steep hills
and mountains surrounding heavily populated plains. The country
is made up of a series of over 1,000 islands. The main islands
include Hokkaido, Honshu, Kyushu and Shikoko.
Natural hazards: some active volcanoes, tsunamis, typhoons
(typhoon season is June - December). Japan's location at the
juncture of several tectonic plates means that approximately 20%
of the world's earthquakes take place in Japan. In March
2011, Japan's strongest-ever earthquake and subsequent tsunami
hit Honshu Island, causing damage to the Fukushima Daiichi
nuclear facility. The earthquake has had a damaging impact on the
country's economy and energy
1

Economy and finance
Currency: yen (¥)
Type of economy: capitalist, Western.
Health of economy: Japan is the world's third largest economy;
however, huge government debt and the cost of repairing the damage
caused by the 2011 earthquake have caused a recession in the
country. Although Japan is slowly recovering, it is also feeling the
effects of weak demand for exports and a sharp downturn in business
investment. Economic recovery will depend partly on how the economy
deals with an ageing population and the attitudes of younger
generations, many of whom do not share the same work ethic as their
parents.
Unemployment rate: 4.5% (Statistics Bureau of Japan, 2011).
Main exports: cars, electronic devices and computers.
Culture
The Japanese culture has many influences from neighbouring continents such
as Europe and North America. The traditional culture comprises of many old
customs extravagant costumes and their cuisine. The Japanese culture is
made up of many traditions some of which are Tea ceremonies, Geishas,
Cherry Blossoms, Sumos, Japanese swords, Festivals etc.
Land and Climate
Most of Japan has a humid Monsoon climate with strong winds the weather
can get very hot during the summer months and very wet and cold during the
winter months it also snows it gets up to -9 degrees Celsius. Japan has four
distinct seasons.
Japan is made up of four large islands and 4,000 little ones. The names of the
four main islands are Honshu, Shikoku, Kyushu and Hokkaido. The largest is
Honshu this is where the capital Tokyo is situated. Japan is well known for its
highest mountain mount Fuji; infact 70% of japans landscape is mountainous.
2

Food
Japans food comprises of rice as a staple, seafood such as fish and Tofu.
Japanese food is very well known around the world because of its simplicity
and tastiness. Sushi is one of the most known dishes. It is Rice wrapped in
Seaweed with various fillings from cucumbers to teriyaki chicken. Some other
examples of Japanese food would be Miso Soup( Bean soup) , Ramen (
Noodles with various vegetables), Tempura ( fish and seafood deep-fried in a
tempura batter)
Language
Japanese is the sixth most spoken the language in world. More than 99% of
Japan speak Japanese the rest either speak English etc. Japanese is written
in characters like Chinese.
Clothing
Today a typical Japanese person wear what an average person every else in
the world would were. The traditional costume for Japan is a Kimono. It is only
worn on special occasions such as weddings graduation ceremonies and
festivals. Different Kimonos are worn on different occasions. On a funeral
Japanese people were black kimonos.
3

DEMOGRAPHIC PROFILE OF JAPAN
Demography is the learning of human residents dynamic. It encompasses the
learning of the size, structure and distribution of populations, and how
populations change over time due to births, deaths, migration, and aging.
Demographic analysis can relate to whole societies or to smaller groups
defined by criteria such as education, religion, or ethnicity.
Demography is the branch of sociology that studies the characteristics of
human populations. Demography is the statistical study of all populations.
Before proposing complex theories to explain sociological phenomena (e.g.,
World Systems Theory), especially at the macro and/or societal levels,
sociologists should first turn to demographic indicators for possible
explanations. Demographic analysis is a powerful tool that can explain a
number of sociological phenomena.
For instance, in examining the elements that led to the first World War, most
people turn to political and diplomatic conflicts but fail to consider the
implications of expanding populations in the European countries involved.
Expanding populations will result in increased competition for resources (i.e.,
food, land, access to trade routes and ports, etc.). Expanding populations may
not be the primary cause of World War I, but it may have played a role in the
increased hostilities leading up to the war.
In this fashion, demographic indicators are often informative in explaining
world events and should be turned to first as explanations.
Demographic profile are includes:
1. Population,
2. Age Structure,
3. Birth rate & Death Rate
4. Major Cities Population
5. Sex Ratio
4

6. Infant Mortality Rate
7. Life Expectancy At Birth
8. Religions
9. Languages
10. Regions,
11. Household Pattern
12. Education Level
POPULATION
Some reports claim that Japan’s total population could fall by as much as 30%
to around 87 million by 2060 and the reasons, quite simply, point to a disparity
in the birth and death rates. In addition, it’s impossible to rule out the part that
the March 2011 Tsunami and Earthquake played. 19,000 people lost their
lives at the time, and it’s widely accepted that the incidents will have a ‘knock-
on’ effect of reducing overall Life expectancy.
Year 2008
2009 2010 2011 2012
Population 127,433,500 127,078,700 126,804,400 126,475,700 127,960,000
5

AGE STRUCTURE
0-14 years- 13.5% (male 8,927,803/ female 8,268,937)
15-64 years- 62.6% (male 39,850,531/ female 39,909,944)
65 years and over- 23.9% (male 13,097,558/ female 17,313,315)
(2012 est.)
100%
AGE STRUCTURE
13.50% 62.60% 23.90%
90%
80%
70%
60%
50%
40%
82689377
39909944
17313315
%
Female
Male
30%
20%
39850531
13097558
10%
0%
8927803
0-14 15-64 YEAR >65
HTTPS://WWW.CIA.GOV/LIBRARY/PUBLICATIONS/THE-WORLD-FACTBOOK/GEOS/JA.HTML
6

BIRTH RATE & DEATH RATE
Birth rate
8.39 births/1,000 population (2011 est.)
Death rate
9.15 deaths/1,000 population (July 2011 est.)
BIRTH RATE & DEATH RATE
Death Rate
52%
Birth date
48%
http://www.indexmundi.com/japan/demographics_profile.html
Interpretation
This entry gives the average annual number of deaths during a year per 1,000
populations at midyear; also known as crude death rate. The death rate, while
only a rough indicator of the mortality situation in a country, accurately
indicates the current mortality impact on population growth.
7

MAJOR CITIES - POPULATION
TOKYO (capital) 36.507 million; Osaka-Kobe 11.325 million; Nagoya 3.257
million; Fukuoka-Kitakyushu 2.809 million; Sapporo 2.673 million (2009)
36.507
MAJOR CITIES-POPULATION
11.325
Tokyo
osaka
3.257
nagoya
2.809
fukuoka
2.673
sapporo
http://www.indexmundi.com/japan/demographics_profile.html
INTERPRETATION
Tokya is a capital of japan. So people are living in the capital. Because there
are many facilities are there. In Tokyo isw a mega cities in the world. In the
lowest population in japan is Sapporo.
8

SEX RATIO
Birth: 1.06 male/female
under 15 years: 1.08 male/female
15-64 years: 1 male/female
65 years and over: 0.76 male/female
total population: 0.94 male/female (2011 est.)
Sex Ratio
>65
19%
at birth
27%
15-64
26%

INFANT MORTALITY RATE
Total: 2.21 deaths/1,000 live births
male: 2.44 deaths/1,000 live births
female: 1.97 deaths/1,000 live births (2011 est.)
INFANT MORTALITY RATE
female
45%
male
55%
http://www.indexmundi.com/japan/demographics_profile.html
Interpretation
This entry gives the number of deaths of infants under one year old in a given
year per 1,000 live births in the same year; included is the total death rate,
and deaths by sex, male and female . This rate is often used as an indicator of
the level of health in a country.
10

LIFE EXPECTANCY AT BIRTH
Total population: 83.91 years
male: 80.57 years
female: 87.43 years (2011 est.)
LIFE EXPECTANCY BIRTH
female
52%
male
48%
http://www.indexmundi.com/japan/demographics_profile.html
Interpretation
This entry contains the average number of years to be lived by group of
people born in the same year, if mortality at each age remains constant in the
future. The entry includes total population as well as the male and female
components.
11

RELIGIONS
100.00%
80.00%
RELIGIAN
Shintoism, 83.9
0% Buddhism, 71.4
0%
60.00%
40.00%
20.00%
0.00%
Cristianity, 2%
Other, 7.80%
Shintoism Buddhism Cristianity Other
http://www.indexmundi.com/japan/demographics_profile.html
Interpretation
Total adherents exceeds 100% because many people belong to both
Shintoism and Buddhism (2005)
This entry is an ordered listing of religions by adherents starting with the
largest group and sometimes includes the percent of total population.
12

LANGUAGES
Japanese, Chinese, Korean, English.
REGIONS
The regions of Japan at a glance are as follows:
Regions of Japan
HOKKAIDO
This island is the second largest of Japan's main islands. The climate is cooler
in summer and very cold in winter. Fishing and forestry are the main
occupations of Hokkaido region. Sapporo, the capital city is famous for the
Snow Festival.
13

TOHUKU
This mountainous region occupies all of northeast region. The region has
short summers and long winters. The area is primarily agriculture based.
KANTO
This region lies in the southeast part of Honshu. The climate is generally
mild. The Tokyo-Yokohama district forms the economic hub of the region and
agricultural work is on the decline.
CHUBU
The region is located in central Honshu. The climatic conditions vary greatly
according to the area. This area has some of the longest rivers of Japan. It
also has 3 industrial areas.
KINKI
This region is located in west central Honshu and is the second most
important industrial area.
CHUGOKU
This region encompasses the western tip of Honshu. The climate is
dehydrated and warm.
SHIKOKU
This is the smallest island of Japan and there is little large scale industry. The
climate is subtropical.
KYUSHU
This is the southernmost of the major islands. The climate is subtropical and
because of the warm climatic conditions, marine sports are very popular. The
Kita Kyushu Industrial Zone has many heavy industries.
14

HOUSEHOLD PATTERNS
AGRICULTURAL AGE FAMILY/HOUSEHOLD PATTERNS
Extended family: several generations living and working together on the land.
INDUSTRIAL AGE FAMILY/HOUSEHOLD PATTERNS
Nuclear family: father working, mother at home not working, and
approximately two children--for middle and upper classes in developed West.
Also nuclear family in lower class West and socialist countries--except that
women worked.
INFORMATION AGE FAMILY/HOUSEHOLD PATTERNS:
Multiple family patterns: no one model everyone must follow to be socially
accepted. Examples include: married couples with or without children;
unmarried couples living together; single parents; divorced parents with
children who remarry, making children part of different households; singleperson
households; people living in groups; gay and lesbian couples; etc.
INFORMATION/DATA ON JAPANESE FAMILY/HOUSEHOLD
PATTERNS
Japan has had a history of stressing it the importance of the "continuing family
before the individual. It was expected that the eldest son inherit the position of
head of the house. Continuity was of paramount importance and other
arrangements, such as adoption, would be made if no sons had been borne.
The rest of the children were expected to leave on marriage, girls to other
hawses, younger sons either to set up branch houses or to a house with no
son as an adopted head. It was important that a `bride or an adopted son fit
into the existing ie, because if they failed to do so, they but things have been
modified significantly. The absolute authority of the head of the house is over,
and since children now choose their future occupations freely, less is made of
an eldest son as the potential successor. Women are still the prime
15

caretakers, and much of the time give up their careers to take on childrearing
as a fulltime job. However more Japanese women now have a career and a
family. The Japanese word for child-rearing is shitsuke, a word also used for
tacking a kimono into shape and teasing rice seedlings into an upright
position. Childrearing is considered by the Japanese to be extremely
important.
EDUCATION LEVEL
The schooling years in the Japanese education system are segmented along
the lines of 6-3-3-4: 6 years of primary or elementary school; 3 years of
middle or junior high school; 3 years of high school; and 4 years of university.
However, the government has just announced (October 2005, Daily Yomiuri)
that it is intending to make changes in the Education Law to allow schools to
merge the 6-3 division between elementary and middle schools.
Many private schools, however, offer a six year programmed incorporating
both junior high school and high school. There are two options for tertiary
education: junior college (two years) and university (four years).
A school year has three terms: summer, winter and spring, which are each
followed by a vacation period. The school year begins in April and ends in
March of the following year.
An elementary school (from 6 years) and junior high school (3 years)
education, i.e. nine years of schooling are considered compulsory (see
pages on legality of homeschooling).
This system, implemented by the School Education Law enacted in March
1947 after WWII, owes its origin to the American model 6-3-3 plus 4 years
of university. Many other features of the Japanese educational system, are
however, based on European models.
16

The Japanese school year begins in April and students attend school for
three terms except for brief spring and winter breaks and a one month long
summer holiday.
SOME STATISTICS
Japan has 23,633 elementary schools, 11,134 junior high schools, 5,450
senior high schools, 995 schools for the handicapped, 702 universities,
525 junior colleges, and 14,174 kindergartens (May 2003 figures).
Enrolment of the population of students may be broken up into:
TYPES OF SCHOOL
POPULATION OF
STUDENTS
Kindergartens 1,760,442
Elementary School 7,226,911
Junior High School 3,748,319
Senior High School 3,809,801
Junior Colleges(usually
two years)
universities (four years)
and graduate schools
250,065
2,803,901
technical colleges 57,875
special training schools 786,135
other types of schools 189,570
17

EDUCATIONAL REFORM & OTHER CURRENT ISSUES
More than 90% of all students graduate from high school and 40% from
university or junior college. 100 % of all students complete elementary school
and Japan is repeatedly said to have achieved 100% literacy and to have the
highest literacy rate in the world since the Edo period.
Each academic year begins in April and comprises of two semesters. Basic
general degrees are four-year degrees, a feature adapted from the American
system. The general degree may be followed by two-year Master's degrees
and then a three year Doctorate (largely based on research) where these are
offered.
18

PESTAL ANALYSIS
POLITICAL CULTURE OF JAPAN
Introduction
• The Japanese government, a constitutional monarchy, is based on a
parliamentary cabinet system. Executive power is vested in the
cabinet, which consists of the prime minister and not more than 17
ministers of state that collectively are responsible to the Diet. The
prime minister, who must be a member of the Diet, is designated by the
Diet. In practice, the prime minister is always a member of the House
of Representatives. The prime minister has the power to appoint and
dismiss the ministers of state, all of whom must be civilians and a
majority of whom must be members of the
Diet. Japan's constitution became effective on May 3, 1947, and
consists of 103 articles.
• Unlike the American political system and the British political system
which essentially have existed in their current form for centuries, the
present Japanese political system is a much more recent construct
dating from Japan's defeat in the Second World War and its
subsequent occupation by the United States. The post-war constitution
of 1947 is an anti-militarist document which includes the renunciation of
the right to wage war and prohibits the maintenance of armed forces
although later a limited self-defence force was permitted.
System of government
• Japan is a democratic, constitutional monarchy with a parliamentary
government headed by a Prime Minister. Japan maintains an Imperial
Family, headed by the Emperor, currently Emperor Akihito. Universal
suffrage is limited to citizens of Japan aged 20 years or older; voting is
voluntary and actual voting rates vary widely.
19

• Executive power is vested in the Cabinet which is comprised of the
Prime Minister and ministers of state. There is a House of
Representatives (also known as the Lower House) and a House of
Councilors (also known as the Upper House). The Prime Minister is
selected from among members of parliament by a vote by both houses
of the Diet (parliament). The Prime Minister submits bills to the Diet,
reports to the Diet on domestic and foreign issues, and supervises and
controls administration.
• The Japanese Constitution specifies that the majority of Cabinet
members must be elected members of parliament. However, the
Prime Minister can appoint non-politicians to the Cabinet and as
Special Ministers of State. There is no term limit for prime ministers
although individual parties often have term limits in place under party
rules.
Government structure
• Japan's governmental structure has three tiers: national, prefectural
and local. There are 47 prefectures and 1788 local
municipalities. Each tier is governed by elected assemblies. Japan
does not have a federal system and the two lower tiers of government
remain to a large extent fiscally dependent on the national
government. At the lower prefectural and local levels of government,
voters regularly vote in governments of different political
leanings. Many local municipalities have merged in recent years
primarily in pursuit of improved governance and greater economic
efficiency.
Political parties
• The post-war history of political parties in Japan shows frequent splits
and mergers. The Democratic Party of Japan (DPJ) took office
following the August 2009 election after more than fifty years of almost
unbroken rule by the LDP. The DPJ was formed in 1998 through the
20

merger of a number of smaller opposition parties, and strengthened by
a further merger with the Liberal Party in 2003.
• There are 95 female Diet Members, who account for around 13 per
cent of all Diet Members.
• In the Lower House, or House of Representatives, there are 480
seats. The chart below indicates the relative strengths of the political
parties in the Lower House. The electoral term for the Lower House is
four years, although political conditions frequently see the House
dissolved earlier.
21

Japan's Economy
Before Japan's 2011 earthquake and nuclear power plant disaster, its
economy was emerging from the deepest recession since the 1970s. It
rebounded strongly in 2010, when GDP increased by a strong 3% -- the
fastest growth in 20 years. It fell off briefly during the last quarter of 2010, but
was expected to pick up again with stronger exports to fast-growing neighbors
in Asia.
However, Japan lost much of its electricity generation when it shut down
nearly all its nuclear power plants after the earthquake. The economy shrank
.5% in 2011 as manufacturing slowed due to the crisis.
If that weren't bad enough, Japan's economy is still challenged by rising
commodity prices -- the country imports most of its food and oil -- and a
shrinking labor pool, as its population ages. Japan is also challenged by
a debt-to-GDP ratio of more than 200%. Like the U.S, much of Japan's debt
resulted from efforts to stimulate its economy out of a 20-year deflationary
period and recession.
Japan's recession became official in Q4 2008 when GDP growth plummeted
12.9% from a year earlier, the worst decline since the 1974 recession. Japan's
economic collapse was a shock, since Q3 growth was only down .1%,
following a decline of 2.4% inQ2 2008. The severe downturn was a result of
slumping exports in consumer electronics and auto sales, 16% of Japan's
economy and a driving force behinds the country's economic revival from
2002-2008.
Japan's economy had only recently recovered from the deflation that hobbled
it in the 1990s. Japan's economy was up 2.1% in 2007, and 3.2% in Q1 2008,
leading many to believe it had finally grown out of its decade-long recession.
22

Japan Economy overview
In the years following World War II, government-industry cooperation, a strong
work ethic, mastery of high technology, and a comparatively small defense
allocation (1% of GDP) helped Japan develop a technologically advanced
economy. Two notable characteristics of the post-war economy were the
close interlocking structures of manufacturers, suppliers, and distributors,
known as keiretsu, and the guarantee of lifetime employment for a substantial
portion of the urban labor force. Both features are now eroding under the dual
pressures of global competition and domestic demographic change. Japan's
industrial sector is heavily dependent on imported raw materials and fuels. A
small agricultural sector is very much subsidized and protected, with crop
yields among the highest in the world. Usually self sufficient in rice, Japan
imports about 60% of its food on a caloric basis. Japan maintains one of the
world's largest fishing fleets and accounts for almost 15% of the global catch.
For three decades, overall actual economic development had been
spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a
4% average in the 1980s. Growth slowed markedly in the 1990s, averaging
just 1.7%, largely because of the after effects of inefficient investment and an
asset price bubble in the late 1980s that required a protracted period of time
for firms to reduce excess debt, capital, and labor. Measured on purchasing
power parity (PPP) basis that adjusts for price differences, Japan in 2011
stood as the third-largest economy in the world after China, which surpassed
Japan in 2001. A sharp downturn in business investment and global demand
for Japan's exports in late 2008 pushed Japan further into recession.
Government stimulus spending helped the economy recover in late 2009 and
2010, but the economy contracted again in 2011 as the massive 9.0
magnitude earthquake in March disrupted manufacturing. Electricity supplies
remain tight because Japan has temporarily shut down most of its nuclear
power plants after the Fukushima Daiichi nuclear reactors were crippled by
the earthquake and resulting tsunami. Estimates of the direct costs of the
damage - rebuilding homes, factories, and infrastructure - range from $235
billion to $310 billion, and GDP declined almost 1% in 2011. Prime Minister
Yoshihiko NODA has proposed opening the agricultural and services sectors
23

to greater foreign competition and boosting exports through membership in
the US-led Trans-Pacific Partnership trade talks and by pursuing free-trade
agreements with the EU and others, but debate continues on restructuring the
economy and reining in Japan's huge government debt, which exceeds 200%
of GDP. Persistent deflation, reliance on exports to drive growth, and an aging
and shrinking population are other major long-term challenges for the
economy.
Why Japan's Economy is Important to the India
India is close to replacing Japan as the world’s third largest ecnomy,
possibly as early as this year, says a senior economist at India credit rating
agency Crisil. Sunil Sinha, the firm’s main macroeconomist, based the
projections on India’s purchasing power parity, saying that tsunami-wracked
Japan will see a decline in GDP this year, while India’s economy will expand
as will the purchasing power of its currency, the rupee.
India is the fourth-largest economy in the globe, trailing the U.S., China and
Japan. GDP figures from 2010 show that the Japanese economy was worth
$4.31 trillion, with India at $4.06 trillion. Not far behind. The earthquake and
tsunami in March nearly shut Japan down for a month and now Japan’s
economy is expected to post no growth at all this year, at best, while India’s
economy will grow between 7% and 8% in 2011.
The International Monetary Fund’s growth forecast for India and Japan show
both country’s GDP levels about the same in constant dollar terms, but the
disaster in Japan has taken its toll on the nation’s growth. “Were it not for the
earthquake and tsunami, India would have overtaken Japan in around 2013-
14,” said Sinha.
24

Economy: The Japanese economy is one of the third largest in the world.
Only the USA and China have a higher GNP. The Japanese currency is
the Yen.
Exports: Japan's main export goods are cars, electronic devices and
computers. Most important trade partners are China and the USA, followed by
South Korea, Taiwan, Hong Kong, Singapore, Thailand and Germany.
Imports: Japan has a surplus in its export/import balance. The most
significant import goods are raw materials like oil, foodstuffs and wood. Major
supplier is China, followed by the USA, Australia, Saudia Arabia, South
Korea, Indonesia and the United Arab Emirates.
Industries: Manufacturing, construction, distribution, real estate, services,
and communication are Japan's major industries today. Agriculture makes up
only about two percent of the GNP. Most vital agricultural product is rice.
Resources of raw materials are very limited and the mining industry rather
small.
Banks: Banks in Japan operate similarly to banks in other countries. There
are a variety of institutions, ranging from large international banks to smaller
regional ones. The large domestic banks include Japan Postal Bank, Mizuho,
Tokyo-Mitsubishi UFJ, Sumitomo, Resona, Citibank and Shinsei Bank.
Furthermore, several online banks, most notably Seven Bank, have recently
gained popularity and offer their customers banking via the internet and a
network of ATMs.
Living cost: Living costs in Japan and especially in Tokyo are famous to be
among the worlds highest. However, if you live outside of central Tokyo,
adjust to a Japanese lifestyle and do not depend too heavily on food and
products from your home country, you may be surprised how inexpensive
Japan can be.
Housing: Some of the world's most expensive land can be found in
central Tokyo. Consequently, even tiny apartments in the city center are very
25

expensive. However, housing costs are distinctly lower in Tokyo's suburbs,
surrounding prefectures and in other regions and cities of Japan. Additional
commuting costs are repeatedly more than rewarded by the savings on the
rental fee, specially as many Japanese companies pay part or all of their
employees' commuting expenses.
Utilities such as gas, water and especially electricity are expensive,
and phone rates are high. For international calls, consider internet phones,
callback services and other offers for the expat community.
SOCIAL CULTURE OF JAPAN
• Japan is an island country in East Asia, situated in the Pacific Ocean, it
lies to the east of the Sea of Japan, China, North Korea, South Korea
and Russia, stretching from the Sea of Okhotsk in the north to the East
China Sea and Taiwan in the south. The characters that make up
Japan's name mean "sun-origin", which is why Japan is at times
referred as the "Land of the Rising Sun".
• Japan is an archipelago of 6,852 islands. The four largest islands are
Honshu, Hokkaido, Kyushu, and Shikoku, which together comprise
about ninety-seven percent of Japan's land area. Japan has the world's
tenth-largest population, with over 127 million people. Honshu’s
Greater Tokyo Area, which includes the de facto capital city of Tokyo
and several nearby prefectures, is the largest urban area in the world,
with over 30 million residents.
• Archaeological study indicates that people lived in Japan as early as
the Upper Paleolithic period. The first written mention of Japan is in
Chinese history texts from the 1st century AD. Influence from other
nations followed by long periods of isolation has characterized Japan's
record. From the 12th century until 1868, Japan was ruled by
successive feudal military dictatorship in the name of the Emperor.
Japan entered into a long period of isolation in the early 17th century,
which was only ended in 1853 when a United States fleet pressured
Japan to open to the West. Nearly two decades of internal conflict and
26

insurrection followed before the Meiji Emperor was restored as head of
state in 1868 and the Empire of Japan was proclaimed, with the
Emperor as a divine symbol of the nation. In 19th and early 20th
centuries, victory in the First Sino-Japanese War, the Russo-Japanese
War and World War I permitted Japan to enlarge its empire during a
period of increasing militarism. The Second Sino-Japanese War of
1937 expanded into part of World War II in 1941, which came to an end
in 1945 following the atomic bombings of Hiroshima and Nagasaki.
Since adopting its revised constitution in 1947, Japan has maintained a
unitary constitutional kingdom with an emperor and an elected
legislature called the Diet.
• A major economic power of Japan has the world's third-largest
economy by nominal GDP and by purchasing power parity. It is also
the world's fourth-largest exporter and fourth-largest importer. Even
though Japan has officially renounced its right to declare war, it
maintains a up to date military with the sixth largest military budget
used for self-defense and peacekeeping roles. After Singapore, Japan
has the lowest homicide rate (including attempted homicide) in the
world. According to Japan's health ministry, Japanese women have the
second highest life expectancy of any country in the world According to
the United Nations, Japan also has the third lowest infant mortality rate.
Social Analysis
• Demographics
The demographic features of the population of Japan include population
density, ethnicity and education level, health of the population, economic
status, religious affiliations and other aspects of the population.
27

• Population- 126,475,664 (July 2011 EST.)
• Age Structure
0-14 years 13.1% (male 8,521,571/female 8,076,173)
15-64 years 64%(male40,815,840/female40, 128,235)
65 years and over 22.9%(male12,275,829/female16,
658,016) (2011 EST.)
• Median Age
Total
Male
Female
Population Growth
44.8 years
43.2 years
46.7 years (2011 EST.)
0.278% (2011 EST.)
• Urbanization
Urban population 67% of total population (2010)
Rate of urbanization 0.2% annual rate of change (2010- 15
EST.)
• Major Cities – Population
TOKYO (capital)
Osaka
Nagoya
Fukuoka
Sapporo
36.507 million
Kobe 11.325 million
3.257 million
Kitakyushu 2.809 million
2.673 million
28

• Ethnic Groups
Japanese 98.5%
Koreans 0.5%
Chinese 0.4%
Other 0.6%
• Religions
Shintoism 83.9%
Buddhism 71.4%
Christianity 2%
Other 7.8%
• Literacy Rate
Definition age 15 and over can read and
write
Total population 99%
Male 99%
Female
99% (3.5% of GDP is spent on
education)
29

JAPANESE CULTURE – OCCUPATIONS
Geisha are famous female traditional entertainers,
who sing, dance, play traditional Japanese musical
instruments and engage their clients with
interesting conversation. Today there are still some
active Geisha in places such
as Kyoto and Kanazawa.
Samurai were a traditional warrior class in preindustrial
Japan, who were easily recognised as
they were the only men allowed to carry two
swords. Samurai were committed to a single
daimyo (normally a wealthy leader).
JAPANESE CULTURE – FASHION
Japanese fashion isn't just a set of modern fashion
trends and sub cultures. Japanese fashion includes
many traditional forms of clothing including
the kimonoand its associated accessories.
The Kimono is the most famous form of traditional
Japanese clothing for women. The Kimono is actually
a style with many different forms; from the casual to
the wedding style, all which have a particular meaning
and are wore to different events or occasions.
30

JAPANESE CULTURE – CEREMONIES
The Japanese Tea Ceremony is a highly developed
art form, with several different schools or styles
of Japanese Tea Ceremony in existence.
The Japanese Tea Ceremony is a very formal event in
which many exacting steps are followed.
Traditional Japanese weddings ceremonies are
normally based on the Japanese Shinto religion
ceremony.Traditional Japanese weddings are major
occasion with the wearing of traditional Japanese
clothing including the bride in the wedding kimono.
JAPANESE CULTURE – MUSIC
Japanese Music is a major part of Japanese culture
which spans from the traditional Japanese music and
instruments to modern Japanese music including J-
POP and Japanese Rock Music.
The Koto is one of the most refined and sophisticated
of the traditional Japanese musical instruments. To the
western ear the Koto would sound similar to a harp.
What is equally amazing about the Koto, is seeing it
carried by petite Japanese woman.
JAPANESE CULTURE – FESTIVALS
Bon-Odori Festival is a traditional Japanese summer
festival featuring Japanese drum music, dancing and
special summer food.
31

Shichi-Go-San Festival is a traditional Japanese
festival where parents celebrate on the fifteenth of
November their children growing up as they turn three,
five and seven years of age.
Japanese New Year is celebrated at same time of the
year as western countries, but is celebrated in a
distinctive style. Japanese New Year is an important
family time of the year and there are many traditions
involved.
32

Technology of Japan
Electronics
Japan is well known for its automotive and electronics industries
throughout the world, and Japanese electronic products account for a
large share in the world market, compared to a majority of other countries.
Japan has large international corporate conglomerates such as Fuji (which
developed the nation's first electronic computer, FUJIC, in 1956) and
Sony. Sony, Panasonic, Canon, Nikon, Fujitsu, Hitachi, Sharp, NEC,
Epson and Toshiba are among the best-known electronics companies in
the world. Toyota, Honda, Nissan, Mazda, Mitsubishi, Nintendo and
Subaru are too extremely well known companies in the world.
Aeronautics
Japan has also complete evolution into aerospace study and space
exploration. The Japan Aerospace Exploration Agency (JAXA) conducts
space and planetary study, aviation examine, and expansion of rockets
and satellites. It has developed a sequence of rockets, the newest and the
majority powerful of which is H-IIB. H-IIA/B rockets which have the
capability of carrying 8-ton payload to the GTO at maximum are now
administered by the private-own company Mitsubishi Heavy Industry.
Development of Battery-Free Display RFID Device by
Toppan :
Toppan Printing has successfully developed a battery-free display
RFID device capable of displaying text and images. The new 2.7 inch
33

dot-matrix electronic paper display is capable of changing its display
contents without the use of battery power.
Furthermore, since electronic paper is used for the display part,
information displayed remains on the screen without any needs for a
battery. The method of communication is compliant with ISO/IEC
15693, which is widely used in the field of RFID. Sample shipment is
from 5000 JPY per unit.
Robotics Technology
Robots can be divided into three main categories:
Industrial Robots
These robots are dedicated to performing repetitive manufacturing tasks
that are often unsafe or unpleasant for human workers. They are
designed to repeat the same process over and over without change.
Modern industrial robots can easily be programmed to perform new
applications.
Research / Service Robots
These robots are designed to assist in exploring and gathering data. They
are often used in space applications, surgeries, and household chores.
They are designed to not only interact with the environment, but react
appropriately, thus coining the term "artificial intelligence."
34

Educational Robots
These robots are occasionally considered plaything or kits and are planned to
offer an educational experience. Educational robots are used in competitions
and for learning experience. They often have the ability to simulate learned
behavior.
Latest Japan Technology
Technologists from Japan’s National Institute of Advanced Industrial Science
and Technology has recently form a 5-foot, dark haired robot in order to look
like the middling Japanese woman between the ages of 19 to 29. But unlike
middling Japanese woman this HRP-4C robot contained 30 motors inside it
for walking and moving arms and it has 8 facial motors inside for blinking,
smiling & expressing emotions.
Carbon Fibers to Trim Vehicle Weigh
Cutting a car's weight is one of the best ways to boost fuel economy.
And one way to reduce weight is to replace some of the steel in a car's
body with a material called carbon f
Carbon fiber is too expensive for widespread use—it costs at least four
times as much as steel by weight. That's why its use has been limited
to luxury vehicles such as the Audi R8 and racing cars, along with
some airplanes and golf clubs.
35

Now, researchers hope to make automotive-grade carbon fiber using a
process similar to how knitting yarn is created. The development could
lower the price of carbon fiber by as much as 25%.
These tiny filaments are wound into strands that are subsequently
turned into a fabric. The fabric is then combined with a glue-like
chemical and hardened into the final shape of a car part, such as a
hood or trunk lid.
High-Tech Agriculture in Japan
The Japanese have taken a high tech approach to agriculture as they
have with everything else. “They are ahead in biotechnology; they grow
their rice with an amazing variety of mini-machines, including
mechanical rice transplanters and harvesters, helicopter spraying, vinyl
sheeting, concrete banked paddies and massive use of chemical
fertilizer.”
The Japanese have produced a tomato plant that bears 10,000
tomatoes with the aid of a rotating-lens system that filters out harmful
sun rays and focused beneficial rays where they are needed most. One
tomato plant at the Tsukuba Science Expo in Japan produced 16,897
individual tomatoes.
The modernization of rice paddy agriculture includes consolidating
small fields into large ones, replacing open canals with underground
drainage pipes, installing pumps to pump in water and periodic draining
of the paddies. These changes have made the paddies easier for
farmers to work.
36

• Environment of Japan
Business Environment
Organizational structure
Strict & hierarchical
Interdependence
Participative management
Long-term planning
Vertical society
Private decision making
Corporate Structure
Japanese management system plays a big role in the nation’s powerful
integrated national system. Japanese management is known for lifetime
employment, seniority-based wages and promotions, consensus decisionmaking,
and enterprise unions. These factors are important for Japan’s
integrated national system and make the system what it is today.
37

Organizational Structure
38

The Cultural Environment
The Elements of Culture:
Material culture: Material culture refers to tools, artifacts and
technology. Before marketing in a foreign culture it is important to
assess the material culture like transportation, power, and
communications and so on.
Language : Language reflects the nature and values of society. There
may be many sub-cultural languages like dialects which may have to
be accounted for. Some countries have two or three languages.
Aesthetics : Aesthetics refer to the ideas in a culture concerning
beauty and good taste as expressed in the arts -music, art, drama and
dancing and the particular appreciation of colors and form. African
music is different in form to Western music. Aesthetic differences affect
design, colors, packaging, brand names and media messages.
Education: Education refers to the transmission of skills, ideas and
attitudes as well as training in particular disciplines. Education can
transmit cultural ideas or be used for change, for example the local
university can build up an economy's performance.
Religion: Religion provides the best insight into a society's behavior
and helps answer the question why people behave rather than how
they behave.
Attitudes and values: Values often have a religious foundation, and
attitudes relate to economic activities. It is essential to ascertain
attitudes towards marketing activities which lead to wealth or material
gain, for example, in Buddhist society these may not be relevant.
Social organization: Refers to the way people relate to each other, for
example, extended families, units, kinship. In some countries kinship
may be a tribe and so segmentation may have to be based on this.
Other forms of groups may be religious or political, age, caste and so
on. All these groups may affect the marketer in his planning.
39

Weather of Japan
In the winter months (December to February), cold, dry air-masses
from Siberia move down over Japan, where they meet warmer, moister
air-masses from the Pacific. The resulting precipitation causes huge
snowfalls on the side of the country that faces the Sea of Japan.
The Pacific Ocean side of Japan receives less snow but can still be
quite cold, while the big cities of Honshū like Tokyo, Osaka, Nagoya
and Kyoto have winters with highs in the single digits or even low teens
and lows a few degrees above zero (Celsius). The odd January or
February day will be colder, but these cold snaps usually don’t last.
The summer months (June to August) are dominated by warm, moist
air currents from the Pacific, and produce high temperatures and
humidity throughout most of Japan (with the blissful exception of
Hokkaidō). In the early part of summer, usually mid-May to June, there
is a rainy season lasting a few weeks that starts in the south and
gradually works its way northward.
Although it can be inconvenient, this rainy season is not usually a
significant barrier to travel. August, September and October is typhoon
season, which can make travel in Okinawa, the Izu-shotō and
Ogasawara-shotō difficult.
In contrast to the extremes of summer and winter, spring (March to
May) and autumn (September to November) in Japan are
comparatively mild. Rainfall is relatively low and the days are often
clear.
40

The Lunar Calendar in Japan
(Table-1)
Explanation: Japanese Names For Months
ENGLISH MODERN
JAPANESE
OLD NAME OLD NAME'S
MEANING
NAME
January IchiGatsu MuTsuki Harmony, Happy Spring
February NiGatsu KisaRagi Seasonal Change of Dress
March SanGatsu YaYohi Grass Grows Dense
April ShiGatsu UTzuki Summer, Plant Rice
May GoGatsu SaTsuki Rice Sprouts
June RokuGatsu MiNaTzuki Watering Month
(put water in the field)
July ShichiGatsu FuTzuki Month of Letters
August HachiGatsu HaTzuki Month of Leaves
September KuGatsu NagaTsuki Autumn Long Month
October JuuGatsu KaNaTzuki Month of Gods*
November JuuIchiGatsu ShimoTsuki Month of Falling Frost
December JuuNiGatsu ShiHasu "Poor Looking" Winter
Environmental issues and pollution in Japan
Types of Pollution in Japan
Dioxin
Because of the limited land area in Japan, securing space to dispose of
trash is a perennial issue. Japan has resorted to burning trash as a matter
of necessity. The term “dioxin” refers to the compound tetrachlorodi
benzo-p-dioxin, which has a propensity to accumulate in the body and to
cause cancer and birth defects.
41

Vehicle Emissions
As a result of the imposition of various rules and regulations, considerable
progress has been made in limiting air pollution from factory smokestacks,
but in Japan’s major cities air pollution from the nitrogen oxides and
particulate matter emitted by motor vehicles continues to cause health
problems. The majority of the particulate matter and approximately 80
percent of the nitrogen oxides emitted by motor vehicles comes from
diesel engines.
High-Tech Pollution in Japan
Another issue in Japan is environmental pollution that is caused by hightech
pollution created by cutting-edge industries, such as integrated circuit
production. Ground water pollution is caused by solvents.
Pollution caused by natural disasters
The Great East Japan Earthquake and the accompanying tsunami in
March 2011 damaged at least 270,000 buildings. The rubble and debris
left behind, including ruined boats, cars, etc., plus those washed up on the
shore, were in excess of 24 million tons. The national government took
prompt measures to collect and dispose of this waste on behalf of the
affected towns and villages, and covered the costs of the clean up by local
governments.
Air Pollution Reduction in Japan
Air pollution in Japanese cities decreased markedly between 1967 and
1985. Laws passed in 1970 helped reduce the levels of sulphur dioxide
emissions by 78 percent in 10 years.
42

• The Japanese Judicial System
overview
There are five types of courts in Japan: the Supreme Court, High Courts,
District Courts, Family Courts and Summary Courts.
Sources : http://www.courts.go.jp/english/system/system/index.html
1) Companies Act (Act No. 86 of July 26, 2005)
General Provisions
Purpose
The formation, organization, operation and management of companies shall
be governed by the provisions of this Act, except as otherwise provided by
other acts.
A Company shall be a juridical person.
Trade Name of the company
The name of a Company shall be its trade name.
A Company shall use in its trade name the words "Kabushiki-Kaisha,"
"Gomei-Kaisha," "Goushi-Kaisha" or "Goudou-Kaisha" respectively for
43

Stock Company, General Partnership Company, Limited Partnership
Company or Limited Liability Company.
Employees of a Company
Section 1 Employees of a Company
Manager
A Company may appoint manager(s) and have him/her carry out its
business at its head office or branch office.
Manager's Authority of Representation
A manager shall have authority to do any and all judicial and nonjudicial
acts on behalf of a Company in connection with its business.
A manager may elect or dismiss other employee(s).
Incorporation
o Section 2 Preparation of Articles of Incorporation
In order to incorporate a Stock Company, incorporator shall prepare articles of
incorporation, and all incorporators shall sign or affix the name and seal to it.
Articles of incorporation of a Stock Company shall specify or record the
following matters:
• Purpose
• Trade name
• Location of the head office
• Value of property to be contributed at the incorporation or the lower
limit thereof
• Name and address of the incorporator
Section 7 Formation of Stock Companies
A Stock Company shall be formed by the registration of the incorporation at
the location of its head office.
Share
Section 1 General Provisions
• Shareholders' Liabilities
44

A shareholder's liability shall be limited to the amount of the subscription price
of the shares he/she holds.
• Total Number of Authorized Shares
A Stock Company may not abolish the provisions on the Total Number of
Authorized Shares by amending its articles of incorporation.
2) Civil Code (Act No. 89 of 1896)
General provision
Common Provisions
This Code must be construed in accordance with honoring the dignity of
Individuals and the essential equality of both sexes.
Section I Capacity to Hold Rights
The enjoyment of private rights shall commence at birth.Unless otherwise
provided by applicable laws, regulations or treaties, foreign nationals shall
enjoy private rights.
Section II Capacity to Act
• Age of Majority
The age of majority is reached when a person has reached the age of 20.
• Permission for Minors to Carry on Business
A minor who is permitted to carry on one or more kinds of business shall
have the same capacity to act as a person of the age of majority as far as
such business is concerned.
Section III Domicile
• Domicile
The principal place wherein a person lives shall be his/her domicile.
45

• Residence
If a person does not have the domicile in Japan, his/her residence is deemed
to be his/her domicile, whether he/she is a Japanese or a foreign national;
provided, however, that, this shall not apply where the law of domicile controls
in accordance with the applicable provision of the Act Concerning the
Application of Laws or other laws which provide the governing law.
• Temporary Domicile
If any temporary domicile is selected for any act, such temporary domicile is
deemed to be the domicile as far as such act is concerned.
Section IV Management of Absentee Property and Adjudication of
Disappearance
• Administration of Absentee Property
In cases any person who has left his/her domicile or residence hereinafter
referred to as "absentee" did not appoint an administrator of his/her property
hereinafter in this Section referred to simply as "administrator"
• Remuneration for Administrator
The family court may grant reasonable remuneration to the administrator from
the property of the absentee with due regard to the relationship between the
administrator and absentee and other circumstances
Juridical Persons
Section I Establishment of Juridical Persons
• Establishment of Juridical Person
No juridical person can be formed unless it is formed pursuant to the
applicable provisions of this Code or other laws.
46

• Registration of Establishment of Juridical Person
A juridical person must complete its registration within two weeks from the day
of its establishment at the location of its principal office, and within three
weeks at any location of its other office.
Section II Management of Juridical Persons
Director: A juridical person must have one or more director
Representative of Juridical Person: The director shall represent the juridical
person with respect to any and all business of the juridical person
Ordinary General Meeting
The director of an incorporated association must convoke an ordinary general
meeting of the members at least once a year.
Extraordinary General Meeting
The director of an incorporated association may convoke an extraordinary
general meeting of the members whenever directors find it necessary.
3) Trademark Act (Act No.127 of April 13, 1959)
Application for trademark registration
Any person who desires to register a trademark shall submit an application to
the Commissioner of the Patent Office accompanied by the required
documents. The application shall state the following matters:
(i)The name and the domicile or residence of the applicant for trademark
registration;
(ii) The trademark for which registration is sought; and
(iii) The designated goods or designated services and the class of goods or
services provided by Cabinet Order.
Where a person desires to register a trademark consisting of a threedimensional
shape the application shall contain a statement indicating thereof.
Where a person desires to register a trademark consisting solely of characters
designated by the Commissioner of the Patent Office , the application shall
contain a statement indicating thereof.
47

Examination by an examiner
The Commissioner of the Patent Office shall direct the examination of
applications for trademark registration by an examiner.
Notification of reasons for refusal
Where the examiner intends to render a decision to the effect that an
application is to be refused, the examiner shall notify the applicant for
trademark registration of the reasons for refusal and provide the applicant
an opportunity to submit a written opinion, designating a reasonable time
limit for such purpose.
TRADEMARK RIGHT
Section 1 Trademark Right
• Duration
The duration of a trademark right shall expire after ten years from the date
of registration of establishment of such right.
Where the renewal of the duration of the trademark right is registered, the
duration shall have been renewed at the time of expiration of the duration.
Section 3 Registration Fees
A person obtaining the registration of establishment of a trademark right
shall pay as a registration fee for each trademark registration the amount
of 66,000 yen multiplied by the number of classes.
A person filing a request for the registration of renewal of the duration of a
trademark right shall pay as a registration fee for each trademark
registration the amount of 151,000 yen multiplied by the number of
classes.
Time limit for payment of registration fees
The registration fee shall be paid within 30 days from the service of a
transcript of an examiner's decision or a trial decision to the effect that a
trademark is to be registered.
48

Penal Provisions
• Person responsible for payment Amount
o Person filing an application for trademark Registration -6,000 yen per
case plus , 15,000 yen for each class.
o Person requesting the division of a trademark Right 30,000 yen per
case.
o Person filing an opposition to registration 3,000 yen per case plus
8,000 yen for each class.
o Person filing a request for a trial or retrial 15,000 yen per case plus
40,000 yen for each class.
4) Industrial Safety and Health Act (Act No. 57 of June 8,
1972)
General Provisions
• Purpose
The purpose of this Act is to secure, in conjunction with the Labor
Standards Act (Act No. 49 of 1947), the safety and health of workers in
workplaces, as well as to facilitate the establishment of comfortable
working environment.
• Measures for Preventing the Dangers or Health Impairment of
Workers
The employer shall take necessary measures for preventing the
following dangers:
o Dangers due to machines, instruments and other equipment.
o Dangers due to substances of an explosive nature, substances of a
combustible nature and substances of an inflammable nature.
Organization for Safety and Health Management
• General Safety and Health Manager
The employer shall, as provided for by the Ordinance of the Ministry of
Health, Labour and Welfare, appoint a general safety and health manager
for each workplace of the scale defined by Cabinet Order and have the
said person direct the work of safety officers, health officers, or persons in
charge of management of technical matters.
49

• Safety Committee
The employer shall establish a safety committee at each workplace of the
scale and in the industries defined by Cabinet Order, in order to have it
investigate and deliberate on the following matters and submit its opinion
to the employer:
o Matters pertaining to the basic measures for preventing dangers to
workers.
o Matters pertaining to safety among the causes of industrial accidents
and countermeasures to prevent its recurrence.
• Health Committee
The employer shall establish a health committee at each workplace of the
scale defined by Cabinet Order, in order to have it investigate and
deliberate on the following matters and state its opinion to the employer:
• Matters pertaining to the basic measures for preventing worker'
health impairment
o Matters pertaining to the basic measures for maintaining and improving
the health of workers.
o Matters pertaining to health among the causes of industrial accidents
and countermeasures to prevent its recurrence.
• Measures for Preventing the Dangers or Health Impairment of
Workers
The employer shall take necessary measures for preventing the following
dangers:
o Dangers due to machines, instruments and other equipment.
o Dangers due to substances of an explosive nature, substances of a
combustible nature and substances of an inflammable nature.
The employer shall take necessary measures for preventing
health impairment as follows:
o Health impairment due to raw materials, gases, vapors, dusts,
insufficient oxygen in air, pathogens, etc. Health impairment due to
radiation, high temperatures, low temperatures, ultrasonic waves,
noises, vibration, abnormal atmospheric pressure, etc.
50

Different Economic sector of Japan
Data Of 2011
Statistics
GDP
$5.866 trillion (2011 est.) (nominal;
3rd) $4.444 trillion (2011 est.)
GDP growth -0.7% (2011)
GDP per capita
$45,870 (2011 est.) (nominal; 12th)
$34,748 (2011 est.)
GDP by sector Agriculture: 1.2%, industry: 27.3%,
services: 71.6% (2011 est.)
Inflation (CPI) 0.3% (April 2011)
Population
below poverty line
Labour force
Labour force
by occupation
Unemployment
Main industries
Ease of Doing Business Rank
15.7%
65.93 million (2011 est.)
agriculture: 3.9%, industry: 26.2%,
services: 69.8% (2010 est.)
4.6% (2011 est.)
among world's largest and
technologically advanced producers
of motor vehicles, electronic
equipment, machine tools, steel and
nonferrous metals, ships, chemicals,
textiles, processed foods
20 th
51

ECONOMIC DATA IN JAPAN
Data Of 2011
Exports
External
$788 billion (2011 est.)
Export goods motor vehicles 13.6%;
semiconductors 6.2%; iron and steel
products 5.5%; auto parts 4.6%;
plastic materials 3.5%; power
generating machinery 3.5%
Main export partners
Imports
Import goods
Main import partners
China 19.7%, US 15.5%, South Korea
8%, Hong Kong 5.2%, Thailand 4.6%
(2011)
$808.4 billion (2011 est.)
petroleum 15.5%; liquid natural gas
5.7%; clothing 3.9%; semiconductors
3.5%; coal 3.5%; audio and visual
apparatus 2.7%
China 21.5%, US 8.9%, Australia
6.6%, Saudi Arabia 5.9%, UAE 5%,
South Korea 4.7% (2011)
FDI stock $161.4 billion (31 December 2010
est.)
Gross external debt $2.719 trillion (30 June 2011)
52

2. INTRODUCTION OF AGRICULTURE SECTOR IN JAPAN
Farming, forestry, and fly-fishing form the primary sector of industry of the
Japanese economy, organized with the Japanese mining industry, but
organized they explanation for only 1.3% of gross national product. Only 15%
of Japan's property is fit for farming, and the farming economy is extremely
maintained and protected.
Agricultural policy makers are frustrated by conflicting goals that are difficult to
resolves especially when their high costs are factored in. While making
reforms to preserve the domestic farming sector and making adoptions so that
Japan can enter free trade agreements, the government also has to enhance
this nation's food self-sufficiency rate and the international competitiveness of
its farms.
UNEMPLOYEMENT RATE OF AGREECULTURE SECTOR IN JAPAN
YEAR
UNEMPLOYEEMENT RATE(%)
ANNUAL
2008 9.2
2009 14.3
2010 13.9
2011 12.5
53

http://www.tradingeconomics.com/japan/agriculture-value-added-percent-of-gdp-wb-data.html
AGRICULTURE SECTOR CONTRIBUTION IN JAPAN
YEAR
CONTRIBUTION OF
AGREECULTURE SECTOR (%)
2008 1.14
2009 1.16
2010 1.16
http://www.tradingeconomics.com/japan/agriculture-value-added-percent-of-gdp-wb-data.html
54

AGRICULTURE SECTOR GROWTH IN JAPAN
YEAR GROWTH (%)
2008 -1.0
2009 -5.5
2010 4.4
2011 0.7
http://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG/countries
3. INTRODUCTION OF BANKING SECTOR IN JAPAN
A bank is a financial institution and a financial intermediary that accepts
deposits and channels those deposits into lending activities, either directly by
loaning or indirectly through capital markets. A bank is the connection
between customers that have capital deficits and customers with capital
surpluses.
Banks performance as fee negotiators by guiding checking or current
accounts for clients, disbursing checks pinched by clients on the bank, and
gathering payments put to clients' present accounts. Banks also enable
55

customer payments via other payment methods such as Automated Clearing
House (ACH), Wire transfers or telegraphic transfer, EFTPOS, and automated
teller machine (ATM).
Banks derive currency by accommodating capitals dropped on recent
accounts, by accepting term deposits, and by issuing responsibility safeties
such as banknotes and bonds. Banks lend currency by production advances
to clients on present financial statement, by creation installment loans, and by
investing in marketable debt safeties and other forms of currency lending.
UNEMPLOYEMENT RATE OF BANKING SECTOR IN JAPAN
YEAR UNEMPLOYEEMENT RATE(%)
ANNUAL
2008 3.987
2009 5.073
2010 5.058
2011 4.882
Unemployeement
6
5
4
3
2
1
0
2008 2009 2010 2011
Unemployee…
http://www.economywatch.com/economicstatistics/Japan/Unemployment_Rate_Percentage_
of_Labour_Force/
56

BANKING SECTOR INFLATION RATE IN JAPAN
YEAR INFLATION RATE OF BANKING
SECTOR (%)
2009 -1.3
2010 -0.7
2011 -0.3
INFLATION RATE (%)
0
-0.5
-1
2009 2010 2011
INFLATION RATE …
-1.5
http://www.gfmag.com/gdp-data-country-reports/247-japan-gdp-countryreport.html#axzz2F2RSnoxX
BANKING SECTOR GROWTH IN JAPAN
YEAR GROWTH (%)
2008 -1
2009 -5.5
2010 4.4
2011 -0.7
57

6
4
2
0
-2
-4
-6
GROWTH(%)
2008 2009 2010 2011
GROWTH(%)
http://www.gfmag.com/gdp-data-country-reports/247-japan-gdp-countryreport.html#axzz2F2RSnoxX
4. INRODUCTION OF MANUFACTURING SECTOR IN JAPAN
Lean principles are derived from the Japanese manufacturing industry. The
term was first coined by John Krafcik in his 1988 article, "Triumph of the Lean
Production System," based on his master's thesis at the MIT Sloan School of
Management.Krafcik had been a quality engineer in the Toyota-GM NUMMI
joint venture in California before coming to MIT for MBA studies. Krafcik's
research was continuous by the International Motor Vehicle Program (IMVP)
at MIT, which shaped the international greatest-seller book co-authored by
Jim Womack, Daniel Jones, and Daniel Roos called The Machine That
Changed the World. [1] A complete historical account of the IMVP and how the
term "lean" was coined is certain by Holweg (2007)
For many, Lean is the usual of "tools" that promotion in the documentation
and constant exclusion of waste. As waste is eliminated value expands while
manufacture period and price are reduced.
The variance between these two methods is not the objective itself, but
moderately the major method to attaining it. The operation of smooth flow
exposures value difficulties that already occurred, and thus waste decrease
obviously happens as a importance. The benefit demanded for this method is
that it obviously takings a scheme-extensive viewpoint, whereas a leftover
attention every so often incorrectly assumes this perspective.
58

MANUFACTURING SECTOR GROWTH IN JAPAN
YEAR GROWTH (%)
2008 0.79
2009 -17.7
2010 18.23
MANUFACTURING SECTOR GDP IN JAPAN
YEAR
GDP(%)
2008 19.79
2009 17.77
2010 19.47
59

5. INTRODUCTION OF HEALTH CARE SYSTEM IN JAPAN
The health care system in Japan provides healthcare services, including
screening examinations, prenatal care and infectious disease control, with the
patient accepting responsibility for 30% of these costs while the government
pays the remaining 70%. Payment for individual health facilities is offered via
a worldwide fitness care guarantee scheme that delivers comparative equality
of admission, with costs set by a government committee. Hospitals, by law,
must be run as not-for-profit and be succeeded by doctors. For-profit
companies are not allowable to own or control clinics. Clinics must be owned
and run by doctors.
Long Life Health Care System.
The insurance carrier then remunerates the doctor, hospital, clinic, or other
medical care provider directly for the remainder on a fee for-service basis as
determined by the Ministry of Health, Labour and Welfare. This universal
medical care insurance system gives all citizens access to adequate medical
care, thus contributing greatly to their peace of mind and to the overall level of
health in society. The percentage of Japan’s population aged 65 or over
was 7% in 1970. Just 41 years later, in 2011, it was more than 23.2%. As
of April 2011, Japan had 29.76 million elderly people. Today one in every five
people is 65 years or older, and in 2050 the ratio will likely be one in three. In
2008, medical expenditures of this group totalled 18.99 trillion yen, or 54.6%
of the total
60

HEALTH CARE SECTOR GDP IN JAPAN
YEAR
GDP(%)
2008 8.51
2009 9.51
2010 9.49
HEALTH CARE SECTOR GROWTH IN JAPAN
YEAR GROWTH (%)
2008 -1
2009 -5.5
2010 4.4
61

6. INTRODUCTION OF RETAIL SECTOR IN JAPAN
Total retail sales including food & beverages, general merchandise, and
fabrics/apparel & accessories in Japan amounted. Total Retail Sales (US$)
RETAIL SECTOR IN JAPAN
YEAR
TOTAL RETAIL SALES( US$)
2008 651215
2009 730743
2010 752572
http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Retail%20Foods_Tokyo%20ATO_
Japan_12-21-2011.pdf
62

Overview of Industry, Trade & Commerce
1. Overview of Industry Trade Commerce
Today, despite an overall stagnation on the economy for nearly two decades,
Japan’s industries are still among the most highly advanced and innovative in
the world. Japanese manufacturing products, particularly in electronics and
automobiles, are the world leaders in both production and technological
advancements in their respective fields.
In 2010, Industry was responsible for 23 percent of Japan's GDP. Major
industries are in Japan include motor vehicles, electronic equipment, machine
tools, steel and nonferrous metals, ships, chemicals, textiles, and processed
foods.
Japan’s automobile industry produces the second largest amount of vehicles
in the world behind China. However, Japanese automobile companies remain
among the most valuable and technologically advanced in the world. Japan is
home to six of the top twenty largest vehicle manufacturers in the world –
Toyota (1st), Renault-Nissan (4th), Honda (8th), Suzuki (10th), Mazda (14th),
Mitsubishi (16th). The automobile industry also managed to register a
massive 10.5 percent growth in 2009, in spite of the global financial crisis.
Japan is also the world’s largest electronics manufacturer with prominent
companies such as Sony, Casio, Mitsubishi Electric, Panasonic, Canon,
Fujitsu, Nikon, Yamaha etc. Japanese electronic products are renowned for
their innovation and quality. Backed by its high-tech industries and
companies, Japan had the 8th highest industrial production growth rate in the
world for 2010 at 15.5 percent. Simultaneously, Japan’s industrial production
growth rate was the highest among the G20 nations.
Despite the historical significance of Japanese manufacturing, Services are
the dominant component of the economy – contributing to 75.9 percent of the
GDP in 2010. Major services in Japan include banking, insurance, retailing,
transportation and telecommunications.
64

The Tokyo Stock Exchange is the third largest stock exchange in the world by
market capitalisation – with a total market capitalization of US$3.8 trillion as of
Dec 2010. Japan Post is also the world’s largest postal savings system, and
quite possibly the world’s largest holder of personal savings – at present it
holds about US$2.1 trillion of household assets in its savings account and
US$1.2 trillion of household assets in its life insurance services.
Agriculture’s contribution to Japan’s economy is fairly small when compared
to Industry and Services. In 2010, Agriculture made up only 1.1 percent of the
nation’s GDP. Although its contribution appears minute, agriculture is still a
highly important component of Japan’s economy and society.
Japan’s agricultural economy is highly subsidized and protected. Only 15
percent of Japanese land is suitable for agriculture, though any available land
is highly cultivated. As such, Japan has one of the highest per hectare crops
yields in the world. Though it has a small agriculture sector, Japan is selfsufficient
in the production of rice and fish, but relies heavily on food imports
such as wheat, corn, sorghum and soybeans from the US.
The 2011 earthquake and tsunami were catastrophic for many of Japan’s
industries. Services contracted by 6 percent since the disaster – with
dampened consumer confidence and interruptions to the economy to blame.
The five major industries that are expected to be the most affected by the
crisis are the natural gas industry, the automobile industry, the semiconductor
industry, the oil industry and the tourism industry. (1)
65

2. TRADING SYSTEM OF JAPAN
Japan’s Economic Relationship
Multilateral
Trading
System
Regional &
Bilateral Trade
policy
Graph Title: Japan Economic Relationship
TRADE & ECONOMIC POLICY ENVIRONMENT
(1) JAPAN'S ECONOMIC ENVIRONMENT
After a severe economic slowdown following the financial crisis in the autumn
of 2008, the Japanese economy began expanding in the spring of 2009,
mainly reflecting an increase in exports and the effects of a series of policy
packages. In 2010, corporate profits have been improving, and household
incomes are apparently sound and steady. However, Japan's economic
recovery recently appears to be pausing, and its economy remains in a
difficult situation as the high unemployment rate shows. In addition, judging
from the recent price trends in Japan, the Japanese economy is in a mild
deflationary phase.
In order to overcome our long-stagnant economy and remove the fear of
continuing future stagnation among the people, our administration has started
initiatives to achieve a "Strong Economy", a "Robust Public Finances" and a
"Strong Social Security System" in an integrated manner. In June 2010, the
government issued a "New Growth Strategy, Blueprint for Revitalizing Japan"
and a "Fiscal Management Strategy, for the Security and Hope of the People",
which contain concrete measures for achieving the above-mentioned three
targets.
66

(2) TRENDS IN FOREIGN TRADE
Trade statistics showed that Japan's trade surplus considerably decreased in
2008 and slightly increased in 2009. In 2008, Japan's imports dramatically
increased due to a sharp rise in the price of crude oil, thus decreasing our
trade surplus to ¥2.06 trillion. In 2009, Japan's exports and imports drastically
decreased due to the world economic crisis. A decrease in imports slightly
exceeded that of exports. As a result, the total trade surplus increased slightly
to ¥2.67 trillion (an increase of ¥0.61 trillion from 2008).
The total value of exports from Japan in 2009 amounted to ¥54.17 trillion (a
decrease of 33.1% from 2008)
-Regional trends in the total value of exports in 2009 (compared to 2008)
China down by 21.0%
NIEs(inc. Korea; Singapore; Hong Kong, China; and Chinese Taipei) down by
28.9%
Association of South East Asian Nations down by 30.1%
United States down by 38.6%
European Union (EU) down by 41.0%
Middle East down by 42.6%
The total value of imports to Japan in 2009 amounted to ¥51.49 trillion (a
decrease of 34.8% from 2008)
-Regional trends in the total value of imports in 2009 (compared to 2008)
China down by 22.9%
European Union (EU) down by 24.3%
67

NIEs (inc. Korea; Singapore; Hong Kong, China; and Chinese Taipei) down
by 29.5%
United States down by 31.4%
Association of South East Asian Nations down by 34.4%
Middle East down by 50.2%
3. TRENDS IN FOREIGN DIRECT INVESTMENT
The amount of FDI stocks steadily increased until 2008. That in CY2008 was
¥18.5 trillion (3.6% of GDP) and that in CY2009 was ¥18.4 trillion (3.9% of
GDP). As the Ministry of Internal Affairs and Communications reports, the
situation of employment in foreign companies in Japan, according to the
"2006 Establishment and Enterprise Census", approximately 750,000 regular
employees were employed by companies which have more than 1/3 of foreign
equity.
In June 2010, the Cabinet issued its "New Growth Strategy". From that
strategy, it is noted that Japan will double employment and double direct
incoming investment by inviting foreign firms which bring high value-added
products and services into Japan. Some items related to this are given below:
For the purpose of strengthening the competitiveness of companies
operating in Japan and encouraging more foreign companies to set up
business bases in Japan, the effective corporate tax rate will be
reduced to the levels of other major countries, taking into consideration
the need to secure tax revenue sources by expanding the tax base.
With the aim of enabling Japan to revive as an Asian industrial center,
an incentive system containing taxation measures will be considered to
invite foreign firms to set up their Asian head offices and R&D bases in
Japan, which are linked with the degree of their contribution to the
68

employment of highly-skilled personnel. It is aimed to put this system
into operation from the FY2011. 1
A "program for promoting Japan as an Asian industrial center and
direct investment into Japan" (tentative name) will be drawn up by the
end of 2010. This program will include reforms to systems and other
measures to ensure smooth flows of people, goods and funds, with the
aim of making Japan's business environment more appealing.
4. TRADE RELATIONS
India’s exports to Japan more than doubled from US$2.5 billion in 2005-06 to
US$5.2 billion in 2010-11, growing at the average rate of 16 per cent per
annum. However, the share of Japan in India’s global exports shrank from
2.4 per cent in 2005-06 to 2.1 per cent in 2010-11. As a result, Japan slipped
from the 10 th to 12 th position in India’s exports over the last five years. India’s
imports from Japan nearly doubled from US$4.1 billion in 2005-06 to US$8.1
billion in 2010-11,with an average rate of growth of 14.9 per cent per year.
However, the share of Japan in India’s global imports declined from 2.7 per
cent in 2005-06 to 2.3 per cent in 2010-11. Consequently, Japan’s position in
India’s imports slipped significantly from the 10 th to 16 th over the last 5 years.2
Total trade between India and Japan had been low at US$13.3 billion in 2010-
11 as against India’s trade with the US at US$43.2 billion and that with its
now, the biggest trade partner,China, at US$59.2 billion . India’s trade with
China recorded an annual average compound 1growth rate of 27.4 per cent
during 2005-96 to 2010-11 against 15.3 per cent for India-Japan trade and 10
per cent for India-US trade.
69

5. INDIA’S TRADE WITH JAPAN
In 2010 the share of Japan in India’s exports plunged to below 2 per cent.
The main items of India’s exports to Japan has been minerals such as iron
ore (constituting 36 percent in 2010), metal products (16 per cent), food
products including marine products (15 percent), raw materials (15 per cent)
and chemical products (8 per cent). It has been noted that the prices of
certain products that India exports to Japan are significantly higher than
India’s exports to other countries. This is due to a much higher cost of
certification 5 by Japanese agencies as compared to Indian agencies. It has
been suggested by India’s Agricultural and Processed Food Products Export
Development Authority (APEDA) that the Japanese government accords
Indian certification agencies an equal status as that of Japanese agencies.
This can particularly boost exports of organic products to Japan which include
basmati rice, honey, spices, tea, and dry fruits (Nataraj, Geethanjali,
2010).Japan had been a major source of India’s imports in 1995 with about 7
per cent share, just behind the US at 10 per cent and Germany at 7.6 per
cent. In 2010, Japan accounted for just a little above 2 per cent of India’s
imports. China overtook the US as the single most important source of India’s
imports in 2005 and it gained a share of nearly 11 per cent of India’s imports
in 2010 against about 6 per cent for the US in that year. India’s major item of
imports from Japan has been general machinery constituting 31 per cent of
total imports in 2010. This is followed by metal products particularly iron and
steel accounting for 23 per cent. Electrical machinery (17 per cent), chemical
products (10 per cent) and transportation machinery (8.5 per cent) are the
other important import products from Japan.
70

6. JAPAN’S TRADE WITH INDIA
Although the share of Japan in India’s trade has been falling significantly over
the years, Japan remains an important trade partner of India. However, India
has been only a marginal trade partner for Japan. India constituted just 0.6
per cent of Japan’s global exports as well as imports in 2005. It seems that a
shift has begun since then and, India’s share in Japanese trade has steadily
improved in recent years. However, this improvement can be seen more in
the case of Japanese exports to India than for her imports from India as
depicted in Table 3.
JAPAN’S TRADE IN INDIA
INDIA’S TRADE IN JAPAN
Graph Title: India Trade in Japan
71

7. JAPANESE FDI IN INDIA
Following is a table of some selected 2010 imports and
exports from Japan, the world's third largest economy.
Table Title: Japan Import and Export
Product (In billions of yen)
Exports Imports
Coal 2110.70
Computers and units 446.95 1548.03
Construction machines Iron and steel products 875.34
3675.43 761.76
Manufactures of metals Mechanical handling equip Motor vehicles Nonferrous metals 981.79
595.55
9174.07
1335.28 761.35
1522.58
595.75
1606.18
Petroleum 9405.88
Petroleum products
1592.85
Power generating machinery 2327.48 653.34
Semiconductors etc 4152.83 2136.04
Ships
Soy beans 2242.26
160.58
72

Foodstuffs 406.12 5199.42
Iron ore & concentrates 1356.58
LNG 3471.85
Machinery 13316.64 4825.71
Manufactured goods 8784.81 5378.60
Raw materials 946.15 4765.88
Source: Japan Ministry of Finance
Blanks indicate either zero values
or no directly comparable data.
8 ROLE OF GOVERNMENT
Japan’s system of economic management is probably without parallel in the
world. Though the extent of direct state participation in economic activities are
limited, the government’s control and influence over the business is stronger
and more pervasive than in most other countries with market economies. This
control is exercised primarily through the government’s constant discussion
with business and through the authorities’ deep indirect involvement in
banking. Consultation is mainly done by means of joint committees and
groups that monitor the performance of, and set targets for, nearly every
branch and sector of the economy. Japanese bureaucrats utilize broad
discretionary power rather than written directives to offer “administrative
guidance” in their interaction with the private sector in order to implement
official policies. However, since the early 1990s, efforts have been made to
limit the use of such unwritten orders, which have been castigated for creating
an atmosphere of collusion between the authorities and big business.
There are several agencies and government departments that concern
themselves with such aspects of the economy as exports, imports,
investment, and prices, as well as with overall economic growth. The most
important of these agencies is the Economic Planning Agency, which is under
the Ministry of Economy, Trade, and Industry (until 2001 the Ministry of
International Trade and Industry) and, apart from monitoring the daily running
of the economy, also is responsible for long-term planning. The practice of
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long-term planning has been a major force in the functioning of the Japanese
economy. According to the economic objectives of the government, various
policy measures have been used to shift the allocation of resources among
industrial sectors and to influence the organization of specific industries.
Control has been underpinned by the detailed regulation of business
activities, particularly in the financial sector. However, by the early 1990s
reducing government intervention in the economy had become a major
objective of the authorities. This was viewed as a way to create new business
opportunities and as a necessity for making Japanese domestic markets more
accessible to foreign business, thus revitalizing what was then a moribund
economy. A number of deregulation packages to remove and ease controls
subsequently were introduced and implemented.
In the 1980s the government relinquished to the private sector its monopolies
over the tobacco and salt industries and domestic telephone and telegraph
services, and the publicly owned Japanese National Railways was privatized
as the Japan Railways (JR) Group. Most of the remaining public corporations
are special-purpose entities (e.g., for nuclear power generation) that would be
unprofitable to operate privately or are government financial institutions. The
government also retains an interest in radio and television broadcasting. It
remains active in matters deemed to be of strategic interest, notably nuclear
power generation, which is subsidized through a major program to increase
generating capacity.
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9 JAPAN IMPORT PROHIBITIONS
Japanese Law prohibits the following goods from being imported:
• Arms & Sword (Ammunition, Cutlass, Dagger, Firearms, Guns, and
Knife.
• Drugs (Awakening, Stimulants, Marijuana, Narcotic, Opium, Poppy
Straw, Psychotropic)
• Animal Quarantine (Antibody, Bacillus, Bacon, Bacteria, Biological
Substance, Blood, Bone, Cell, Coliform, Feathers, Feed, Guts, Horns,
Jerky. Per Food, Protein, Raw Wool & Leather, Sausage, Semen,
Serum)
• Plant Quarantine (Barley, Beans, Clay, Flour, Flowers, Green Coffee,
Hay, Fresh/Dried Fruits, Grain, Herb, Leaf, Malt, Nuts, Potpourri, Rice,
Seeds, Soil, Spices, Tea (Tea bag accepted), Tobacco, Walnut,
Wheat, Wood, Vegetable)
• Toxic/Poisonous Substance
• Articles that infringe upon rights in patent, utility models, designs,
trademarks, or copyrights
• Personal Effects
• Products made in North Korea
• Movie Films (35mm & 70mm)
• *Human & Mouse Origin Antibody/Blood/Serum/Tissue can be
accepted
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10 JAPAN EXPORT PROHIBITIONS
Japanese Law prohibits the export of the following goods:
1. Drugs (narcotics, stimulants, opium, psychotropic substances) and
utensils for opium use
2. Firearms and parts, Ammunition
3. Weapon, Nuclear weapon, Chemical Weapon and their parts or
materials
4. Counterfeit money or securities
5. Pornographic or obscene material
6. Articles that infringe on patents, trademarks, copyrights, etc.
7. Goods that are supposed to be supplied to domestic Market in higher
priority than foreign market
8. Certain plants and animals that are subject to CITES (Convention on
International Trade in Endangered Species) regulations.
List of the largest trading partners of Japan
These figures do not include services or foreign direct investment, but only
trade in goods. The fifteen largest Japanese trading partners with their total
trade (sum of imports and exports) in billions of US Dollars for calendar year
2010 [1] are as follows:
Graph Title: List of the Largest Trading Partners of Japan
Country
China
United States
South Korea
Taiwan
Exports Imports Total Trade
149.1 152.8 301.9
118.2 67.2 185.4
62.1 28.5 90.6
52.2 23.0 75.2
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Country
Australia
Thailand
Indonesia
Hong Kong
Saudi Arabia
Malaysia
Germany
Exports Imports Total Trade
15.8 45.0 60.8
34.1 21.0 55.0
15.9 28.1 44.0
42.1 1.5 43.7
6.5 35.8 42.2
17.6 22.6 40.2
20.2 19.2 39.5
United Arab Emirates 7.3 29.2 36.5
Singapore
Russia
Qatar
25.1 8.1 33.3
8.0 16.1 24.1
1.1 21.6 22.8
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Overview of Japan economy
Japan's Economy:
Before Japan's 2011 earthquake and nuclear power plant disaster, its
economy was emerging from the deepest recession since the 1970s. It
rebounded strongly in 2010, when GDP increased by a strong 3% -- the
fastest growth in 20 years. It fell off briefly during the last quarter of 2010, but
was expected to pick up again with stronger exports to fast-growing neighbors
in Asia.
However, Japan lost much of its electricity generation when it shut down
nearly all its nuclear power plants after the earthquake. The economy shrank
.5% in 2011 as manufacturing slowed due to the crisis.
If that weren't bad enough, Japan's economy is still challenged by rising
commodity prices -- the country imports most of its food and oil -- and a
shrinking labor pool, as its population ages. Japan is also challenged by
a debt-to-GDP ratio of more than 200%. Like the U.S, much of Japan's debt
resulted from efforts to stimulate its economy out of a 20-year deflationary
period and recession.
Japan's recession became official in Q4 2008 when GDP growth plummeted
12.9% from a year earlier, the worst decline since the 1974 recession. Japan's
economic collapse was a shock, since Q3 growth was only down .1%,
following a decline of 2.4% inQ2 2008. The severe downturn was a result of
slumping exports in consumer electronics and auto sales, 16% of Japan's
economy and a driving force behinds the country's economic revival from
2002-2008.
Japan's economy had only recently recovered from the deflation that hobbled
it in the 1990s. Japan's economy was up 2.1% in 2007, and 3.2% in Q1 2008,
leading many to believe it had finally grown out of its decade-long recession.
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Japan Economy overview
In the years following World War II, government-industry cooperation, a strong
work ethic, mastery of high technology, and a comparatively small defense
allocation (1% of GDP) helped Japan develop a technologically advanced
economy. Two notable characteristics of the post-war economy were the
close interlocking structures of manufacturers, suppliers, and distributors,
known as keiretsu, and the guarantee of lifetime employment for a substantial
portion of the urban labor force. Both features are now eroding under the dual
pressures of global competition and domestic demographic change. Japan's
industrial sector is heavily dependent on imported raw materials and fuels. A
tiny agricultural sector is highly subsidized and protected, with crop yields
among the highest in the world. Usually self sufficient in rice, Japan imports
about 60% of its food on a caloric basis. Japan maintains one of the world's
largest fishing fleets and accounts for nearly 15% of the global catch. For
three decades, overall real economic growth had been spectacular - a 10%
average in the 1960s, a 5% average in the 1970s, and a 4% average in the
1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely
because of the after effects of inefficient investment and an asset price bubble
in the late 1980s that required a protracted period of time for firms to reduce
excess debt, capital, and labor. Measured on a purchasing power parity (PPP)
basis that adjusts for price differences, Japan in 2011 stood as the thirdlargest
economy in the world after China, which surpassed Japan in 2001. A
sharp downturn in business investment and global demand for Japan's
exports in late 2008 pushed Japan further into recession. Government
stimulus spending helped the economy recover in late 2009 and 2010, but the
economy contracted again in 2011 as the massive 9.0 magnitude earthquake
in March disrupted manufacturing. Electricity supplies remain tight because
Japan has temporarily shut down most of its nuclear power plants after the
Fukushima Daiichi nuclear reactors were crippled by the earthquake and
resulting tsunami. Estimates of the direct costs of the damage - rebuilding
homes, factories, and infrastructure - range from $235 billion to $310 billion,
and GDP declined almost 1% in 2011. Prime Minister Yoshihiko NODA has
proposed opening the agricultural and services sectors to greater foreign
79

competition and boosting exports through membership in the US-led Trans-
Pacific Partnership trade talks and by pursuing free-trade agreements with the
EU and others, but debate continues on restructuring the economy and
reining in Japan's huge government debt, which exceeds 200% of GDP.
Persistent deflation, reliance on exports to drive growth, and an aging and
shrinking population are other major long-term challenges for the economy.
Japan's Importance to the Global Economy:
Japan is the world's fourth largest economy (after the EU, U.S. and China), so
its decline would drag down the global economy, as well. Japan also hires
temporary workers from nearby South Asian countries, who are now being
laid off in droves.
To combat recession in the 1990s, the Bank of Japan had lowered interest
rates to 0% and bought U.S. Treasuries, keeping the yen low which made
exports competitively priced.
The low yen caused investors to borrow money in yen at a low interest rate
and invest it in higher-paying currencies, such as the dollar. This was known
as the yen carry trade, and created much liquidity in the global marketplace.
Last year, the yen carry trade collapsed, and the yen skyrocketed. The
stronger yen made Japanese exports less competitive at a time
when demand had fallen in the U.S.
Why Japan's Economy is Important to the India:
India is close to replacing Japan as the world's third largest economy,
possibly as early as this year, says a senior economist at India credit rating
agency Crisil. Sunil Sinha, the firm's main macroeconomist, based the
projections on India's purchasing power parity, saying that tsunami-wracked
Japan will see a decline in GDP this year, while India's economy will expand
as will the purchasing power of its currency, the rupee.
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As it stands now, India is the fourth-largest economy in the world, trailing the
U.S., China and Japan. GDP figures from 2010 show that the Japanese
economy was worth $4.31 trillion, with India at $4.06 trillion. Not far behind.
The earthquake and tsunami in March nearly shut Japan down for a month
and now Japan's economy is expected to post no growth at all this year, at
best, while India's economy will grow between 7% and 8% in 2011.
“India should overtake Japan in 2011 to become the third-largest economy in
the world at purchasing power parity,” Sunil Sinha, head of research and
senior economist at Crisil was quoted saying in The Economic Times of India
on Tuesday.
The International Monetary Fund's growth forecast for India and Japan show
both country's GDP levels about the same in constant dollar terms, but the
disaster in Japan has taken its toll on the nation's growth. “Were it not for the
earthquake and tsunami, India would have overtaken Japan in around 2013-
14,” said Sinha.
Economy:
The Japanese economy is one of the third largest in the world. Only the USA
and China have a higher GNP. The Japanese currency is the Yen.
Exports: Japan's main export goods are cars, electronic devices and
computers. Most important trade partners are China and the USA, followed by
South Korea, Taiwan, Hong Kong, Singapore, Thailand and Germany.
Imports: Japan has a surplus in its export/import balance. The fundamental
import goods are raw materials such as oil, foodstuffs and wood. Major
supplier is China, followed by the USA, Australia, Saudia Arabia, South
Korea, Indonesia and the United Arab Emirates.
Industries: Manufacturing, construction, distribution, real estate, services,
and communication are Japan's major industries today. Agriculture makes up
only about two percent of the GNP. The largest part essential farming product
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is rice. Resources of raw materials are very limited and the mining industry
rather small.
Banks:
Banks in Japan operate similarly to banks in other countries. There are a
variety of institutions, ranging from large international banks to smaller
regional ones. The large domestic banks include Japan Postal Bank, Mizuho,
Tokyo-Mitsubishi UFJ, Sumitomo, Resona, Citibank and Shinsei Bank.
Furthermore, several online banks, most notably Seven Bank, have recently
gained popularity and offer their customers banking via the internet and a
network of ATMs.
Living cost
Living costs in Japan and especially in Tokyo are famous to be among the
world's highest. However, if you live outside of central Tokyo, adjust to a
Japanese lifestyle and do not depend too heavily on food and products from
your home country, you may be surprised how inexpensive Japan can be.
Housing
Some of the world's most expensive land can be found in central Tokyo.
Consequently, even tiny apartments in the city center are very expensive.
However, housing costs are distinctly lower in Tokyo's suburbs,
surrounding prefectures and in other regions and cities of Japan. Extra
commuting costs are often more than compensated by the savings on the
rent, especially as many Japanese companies pay part or all of their
employees' commuting expenses. If you prefer to live close to city
centers, gaijin houses are an inexpensive option to consider.
Utilities such as gas, water and especially electricity are expensive,
and phone rates are high. For international calls, consider internet phones,
callback services and other offers for the expat community.
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Japan's economic growth
It is a matter of pride for Japan that it houses one of the most educated,
skilled and healthy human populations in the world. Boasting the highest life
expectancy in the world, the country successfully offset the disadvantages of
having limited natural resources and arable land. While the unparalleled
economic recovery of Japan after World War II was propelled by the
manufacturing sector, primarily by the automobile and the consumer
electronics industry, the economy progressively became more broad-based,
shifting to a services-centered economy.
Exports have always been one of the critical drivers of the Japanese
economy. Not surprisingly, this robust trade performance enabled Japan to
have the second largest stock of foreign exchange reserves in the world, after
China. However, Japan's external demand is still driven by manufacturing, as
over 65% of its exports are comprised of transport equipment, electrical
machinery, and general machinery.
Japan also emerged as a global financial center, with the Tokyo Stock
Exchange becoming one of the most important stock exchanges in the world.
A global leader in innovation and quality, Japan has made ground-breaking
contributions in automotive technology and design.
Japan's economic growth took a dive because of the natural disasters, but
2012 will clearly be a bounce-back year, fueled by rebuilding as well as the
general economic strength of the areas not directly affected by the earthquake
and tsunami. In subsequent years, growth is likely to taper down to Japan's
sustainable long-term growth rate of just over one percent. The IMF forecast,
which is typical of many private sector outlooks, reflects this. However, there's
significant uncertainty surrounding this view of the future.
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GDP (purchasing power parity):
$4.389 trillion (2011 est.) country comparison to the world: 5
$4.41 trillion (2010 est.)
$4.242 trillion (2009 est.)
GDP (official exchange rate):
$5.855 trillion (2011 est.)
GDP - real growth rate:
-0.5% (2011 est.)
country comparison to the world: 202
4% (2010 est.)
-6.3% (2009 est.)
GDP - per capita:
$34,300 (2011 est.) country comparison to the world
$34,600 (2010 est.)
$33,300 (2009 est.)
GDP - composition by sector:
Agriculture: 1.4%
Industry: 24%
Services: 74.6% (2011 est.)
Labor force:
62.74 million (2011 est.) country comparisons to the world
84

Labor force - by occupation:
Agriculture: 3.9%
Industry: 26.2%
Services: 69.8% (2010 est.)
Unemployment rate: 4.8% (2011 est.) country comparison to the world:
445% (2010 est.)
Population below poverty line:
15.7% (2007)
Investment (gross fixed):
20.9% of GDP (2011 est.)
Budget:
revenues: $1.984 trillion
expenditures: $2.483 trillion (2011 est.)
Taxes and other revenues:
33.9% of GDP (2011 est.)
Budget surplus (+) or deficit (-):
-8.5% of GDP (2011 est.)
Public debt:
208.2% of GDP (2011 est.) country comparison to the world: 2199.7% of
GDP (2010 est.)
Inflation rate (consumer prices):
0.4% (2011 est.)
-0.7% (2010 est.)
Commercial bank prime lending rate:
1.4% (31 December 2011 est.)
1.475% (31 December 2010 est.)
85

Stock of narrow money:
$6.696 trillion (31 December 2011 est.)
$6.047 trillion (31 December 2010 est.)
Stock of broad money:
$16.46 trillion (31 December 2010)
$15.43 trillion (31 December 2009)
Agriculture - products:
rice, sugar beets, vegetables, fruit; pork, poultry, dairy products, eggs; fish
Industries:
among world's largest and technologically advanced producers of motor
vehicles, electronic equipment, machine tools, steel and nonferrous metals,
ships, chemicals, textiles, processed foods
Industrial production growth rate:
-1.5% (2011 est.)
Natural gas - proved reserves:
20.9 billion cu m (1 January 2011 est.)
Current account balance:
$122.8 billion (2011 est.)
$195.8 billion (2010 est.)
Exports:
$800.8 billion (2011 est.)
$730.1 billion (2010 est.)
Exports - commodities:
transport equipment, motor vehicles, semiconductors, electrical machinery,
chemicals
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Exports - partners:
China 19.4%, US 15.7%, South Korea 8.1%, Hong Kong 5.5%, Thailand 4.4%
(2010)
Imports:
$794.7 billion (2011 est.)
$639.1 billion (2010 est.)
Imports - commodities:
machinery and equipment, fuels, foodstuffs, chemicals, textiles, raw materials
Imports - partners:
China 22.1%, US 9.9%, Australia 6.5%, Saudi Arabia 5.2%, UAE 4.2%, South
Korea 4.1%, Indonesia 4.1% (2010)
Reserves of foreign exchange and gold:
$1.063 trillion (31 December 2010 est.)
$1.024 trillion (31 December 2009 est.)
Debt - external:
$2.719 trillion (30 June 2011)
$2.441 trillion (30 September 2010)
Stock of direct overseas investment - at home:
$146.7 billion (31 December 2011 est.)
$199.4 billion (31 December 2010 est.)
Stock of direct overseas investment - abroad:
$880 billion (31 December 2011 est.)
$795.7 billion (31 December 2010 est.)
Exchange rates:
yen (JPY) per US dollar -
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79.67 (2011 est.)
87.78 (2010 est.)
93.57 (2009)
103.58 (2008)
117.99 (2007)
Fiscal year- 1 April - 31 March
88

Regional differences
The region of Japan are not official administrative units, but have been
traditionally used as the regional division of Japan in a number of
contexts. For instance, maps and geography textbooks divide Japan into the
eight regions, weather reports usually give the weather by region, and many
businesses and institutions use their home region as part of their names
(Kinki Nippon Railway, Chūgoku Bank, Tōhoku University, etc.). While Japan
has eight High Courts, their jurisdiction do not correspond to the eight region
below.
Beginnings north to south, the traditional region are:
• Hokkaidō (the island of Hokkaidō and nearby islands, population:
5,507,456, largest city: Sapporo)
• Tōhoku region (northern Honshū, population: 9,335,088, largest
city: Sendai)
• Kantō region (eastern Honshū, population: 42,607,376, largest
city: Tokyo)
• Nanpō Islands: part of Tokyo Metropolis
• Chūbu region (central Honshū, together with Mt. Fuji, population:
21,714,995, largest city: Nagoya), sometimes divided into:
o Hokuriku region (northwestern Chūbu, largest city: Kanazawa)
o Kōshin'etsu region (northeastern Chūbu, largest city: Niigata)
o Tōkai region (southern Chūbu, largest city: Nagoya)
• Kansai or Kinki region (west-central Honshū, population: 22,755,030,
largest city: Osaka)
• Chūgoku region (western Honshū, population: 7,561,899, largest
city: Hiroshima)
• Shikoku (island, population: 3,977,205, largest city: Matsuyama)
• Kyūshū (island, population: 14,596,977, largest city: Fukuoka) which
includes
Ryukyu Islands (Nansei-shotō)
Satsunan Islands: part of Kagoshima Prefecture
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Ryukyu-shotō and Daitō Islands: Okinawa
Each contain several prefectures, except the Hokkaidō region, which covers
only Hokkaidō.
Import and Export in Japan
Japan is the 5 th largest importer and exporter in the world.
Japan's Import and Export Indicators and Statistics at a Glance (2010)
Total value of exports: US$765.2 billion
Primary exports - commodities: transport equipment, motor vehicles, semi
conductors, electrical machinery, chemicals
Primary exports partners: China (18.88 percent of total exports), US (16.42
percent), South Korea (8.13 percent), Taiwan (6.27 percent), Hong Kong
(6.27 percent)
Total value of imports: US$636.8 billion
Primary imports - commodities: machinery and equipment, fuels,
foodstuffs, chemicals, textiles, raw materials
Primary imports partners: China (22.2 percent of total imports), US (10.96
percent), Australia (6.29 percent), Saudi Arabia (5.29 percent), UAE (4.12
percent), South Korea (3.98 percent), Indonesia (3.95 percent)
Japan's imports from India up 21.5% in last fiscal
Japan's imports from India jumped 21.5 per cent to ¥54 billion in the financial
year that ended on March 31. Mr. Mitsuo Kawaguchi, Consul General of
Japan, said this at an interaction with EEPC India (formerly Engineering
Export Promotion Council) members here.
The Indian engineering industry appears poised for better access to the
Japanese market and more Japanese companies are willing to set up joint
90

ventures with their Indian counterparts. Mr Kawaguchi said after the signing of
the Comprehensive Economic Partnership Agreement (CEPA) in February
last year that there has been a visible change in the two-way trade.
Under the CEPA, Japan eliminated tariffs on 87 per cent of its tariff lines. Over
the next decade, it would remove import tariffs in a phased manner on nearly
97 per cent of the tariff lines. Iron, steel, zinc, aluminum and copper items
from India can pass through with zero duty into Japan.
Industrial and automotive components form a substantial part of the exports to
Japan.
“Japan is looking for outsourcing opportunity in India,” he said. Japanese
company be as well keen to set up manufacturing basis in India.
91

Business overview of Japan & International trade level
Japan Business in Indian Context
The Indian Navy and the Japanese Maritime Self Defense Force conducted
their first ever bilateral naval exercise during a visit of four Indian Navy
ships to Japan from June 5 to 9 as part of the scheduled Overseas Fleet
Deployment. The exercise was conducted off the coast of Japan on 09-10
June, 2012.
The conduct of the bilateral naval exercises between both countries was
decided during the visit of Defense Minister A.K. Antony to Japan in
November 2011.
Units of the Japanese Maritime Self Defense Force (JMSDF) participated and
included assets such as two destroyers, one maritime patrol aircraft, and a
helicopter. Indian Naval units participating are INS Rana, INS Shivalik, INS
Karmukh and INS Shakti.
India’s four ships entered Tokyo on 05 Jun 12 after visiting Singapore,
Vietnam, Philippines and Republic of Korea. The three day stay in Tokyo
coincides with commemoration of 60 years of diplomatic relations between
India and Japan.
Topic: India-Japan Trade From 2004-2010
Japan-India Trade (Yen: billion)
YEAR 2004 2005 2006 2007 2008 2009 2010
TREDE EROM
INDIA TOJAPAN
TREDE FROM
JAPAN TO INDIA
283 352 472 491 544 348 A97
329 388 518 723 819 591 792
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Share to Japanese total trade of China and of the US
Outlook for 2012
The Chinese government has been intensifying efforts towards easing
its monetary policies to avoid further economic slowdown. However,
they are cautious about implementing large-scale stimulus measures to
create domestic demand, and any increase in demand resulting from
such economic measures is expected to be limited. In addition, China’s
slowing industrial production is forecasted to continue, thus Japan’s
exports to China are likely to decline.
Imports from China are expected to see a modest rise, fueled by the
increasing imports of smart phones.
In view of the circumstances, Japan-China trade throughout 2012 is not
expected to see a large increase, but could possibly set a new record
high with a modest increase over the previous record set in 2011.
The trade deficit is likely to surpass the previous record of US$28.8
billion set in 2005.
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Japan trade with other countries (2011-12) (Million yen)
Sr. No. Countries name Export Import
1 China 10,70,244 10,41,013
2 Iran 1,36,103 10,27,380
3 Taiwan 3,67,236 1,53,383
4 Bahrain 37,303 57,374
5 Hong Kong 34,19,761 1,22,979
6 Saudi Arabia 5,17,243 40,25,783
7 Viet Nam 7,63,796 9,19,857
8 Kuwait 1,07,372 10,44,215
9 Thailand 29,88,515 19,53,163
10 Qatar 81,078 23,95,410
11 Singapore 21,70,069 6,90,941
12 Oman 2,22,645 4,09,686
13 Malaysia 14,96,147 24,25,671
14 Israel 1,73,630 86,096
15 United Arab Emirates 5,92,258 34,13,092
16 Philippines 8,94,085 71,52,066
17 European Union (EU) 76,19,252 64,11,009
18 Indonesia 14,12,322 27,15,956
19 Denmark 39,585 1,92,674
20 India 8,82,081 5,43,290
21 U.K. 13,04,442 5,78,622
22 Pakistan 1,35,255 36,563
23 Ireland 71,136 3,33,191
24 Netherlands 14,28,942 4,55,220
25 Belgium 5,41,975 2,67,438
26 France 6,37,658 9,43,602
27 Germany 18,71,403 18,56,156
28 United state 59,31,422 7,09,362
29 Canada 7,09,362 10,31,567
94

Business overview of Japan
Trade policy of Japan
• Export policy of Japan
• Import policy of Japan
Export policy of Japan
For many years, sell to other countries promotion was a large issue
in Japanese government course of action. Government official acknowledged
that Japan required importing to grow and grow, and it needed to generate
exports to pay for those imports. After 1945, Japan had complication export
enough to pay for its imports until the mid-1960s, and resulting deficits were
the justification for sell to other countries endorsement programs and import
restrictions.
The belief in the need to promote export is early strong and part of Japan's
self-image as a "processing country A dealing out nation must import raw
materials but is capable to pay for the imports by adding importance to them
and exporting some of the output. Nations develop stronger economically by
affecting up the industrial hierarchy to produce products with superior value
added to the basic inputs. Rather than letting markets get done this
movement on their own, the Japanese control felt the economy should be
guide in this way all the way through industrial policy.
Japan's methods of promote exports have taken two paths. The first was to
build up first-class industries that can firstly substitute for imports and then
fight in international markets. The second was to provide incentives for firms
to export.
During the first two decades later than World War II, export incentives took the
form of a join up of tax support and government assistance to construct export
industries. After joining the International Monetary Fund (IMF) in 1964,
however, Japan had to drop its main export incentive — the whole exclusion
of export income from taxes — to fulfill with IMF procedures. It did keep into
95

the 1970s, however, extraordinary tax action of costs for market development
and export endorsement.
Once chronic trade deficits came to an end in the mid-1960s, the require for
export promotion policies diminished. Virtually all export tax incentives were
eliminated over the track of the 1970s. Even JETRO, In the 1980s, Japan
constant to use industrial policy to support the growth of new, more complex
industries, but direct export promotion measures were no longer division of
the policy package.
The 1970s and 1980s saw the future out of policies to restrain exports in
certain industries. The great achievement of some Japanese export industries
formed a criticism in other countries, either because of their success per se or
because of allegations of unjust aggressive practices. Under General
Agreement on Tariffs and Trade (GATT) course of action, nations have been
reluctant to raise tariffs or compel import quotas. quota violate the guidelines,
and raising tariffs goes against the common trend connecting industrial
nations. Instead, they have resorted to persuasive the exporting country to
"voluntarily" hold back exports of the offending product. In the 1980s, Japan
was quite willing to carry out such export restraints. Among Japan's exports to
the United States, steel, color television sets, and automobiles all were topic
to such restraints at a variety of times.
Import policy of Japan
Japan began the postwar period with heavy import barrier. practically
all products were topic to government quotas, many faced high tariffs,
and MITI had power over the portion of the foreign exchange that companies
needed to pay for any import. These policies were acceptable at the time by
the weaken condition of Japanese industry and the country's regular trade
deficit.
The main impulsion for change throughout has been worldwide
commitment that is, response to foreign, rather than domestic, and force. The
result has been a lengthy, reluctant process of reducing barriers, which has
irritated many of Japan's trade partners.
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Japan has been a partaker in the major rounds of tariff cutting negotiations
under the GATT framework — the Kennedy Round complete in 1967,
the Tokyo Round completed in 1979, and the Uruguay completed in 1993. As
a result of these agreements, tariffs in Japan fell to a low level on average.
Upon complete performance of the Tokyo Round agreement, Japan had the
lowest average tariff level among industrial countries—2.5 percent, compared
with 4.2 percent for the United States and 4.6 percent for the European Union
1980s
Japan's quotas also dropped. From 490 items under quota in 1962, Japan
had just twenty-seven items under quota in the mid-1980s, and that number
dropped again late in the decade to 22 with further agreements programmed
to move toward into effect in the early 1990s, which would reduce the number
again. But those products still under allocation proved to be highly able to be
seen and were the purpose of complaints by exporting countries. The
reduction of restricted items in the late 1980s resulted from Japan's failure of
a GATT case brings by the United States about import limitations on 12
farming products. In addition, heavy force from the United States led to an
agreement that Japan would end import quotas on beef and citrus fruit in
1991.
1990s to 2010
The collapse of the Japanese asset price bubble in the early 1990s and the
following Lost Decade helped matters. price cut markets opened the supply
chains, and several companies curved to foreign trade and savings to avoid
losses and even insolvency. Products of Japanese companies that were
Produced in South-Asian countries were reimported at lower prices. The
Japanese consumer also changed: Economic problems forced many
Japanese to look for cheap prices first and care about national pride or
superior quality later
97

Documentation for international trade
• Key Documents:-
A pro forma invoice: - is an invoice, like letter of intent, from the exporter to
the importer that outlines the selling terms, price, and delivery if goods are
actually shipped .if the importer likes the terms and condition, it will send a
purchase order and arrange for payment. At that point, the exporter can issue
a commercial invoice.
A commercial invoice:- is a bill for goods from buyer to seller. It contains a
description f the goods, the address of buyers and sellers, the delivery and
payment terms .many government use this forms to assess duties.
A bill of lading: is a receipt for goods delivered to the common carrier
transformation, a contract for the service rendered by the carrier, and a
document of title.
A consular invoice: is something required by countries as a mean of
monitoring import .governments can use a consular invoice to monitor a price
of import and a generate revenue for the embassies that issue the consular
invoice
A certificate of origin: - it indicates where the product originated and is
usually validated by an external source, such as the chamber of commerce. It
helps Countries determine the specific tariff schedule of imports.
A shipper’s export declaration: - is used by the exporter’s government to
monitor exports and compile trade statistics.
An export packing list: - itemize the material in each individual package,
indicate the type of package, and is attached to the outside of the package.
The shipper or freight forwarder, and sometimes customs officials, use the
packaging list to determine the nature of the cargo and whether the correct
cargo is being shipped.
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PRESENT TRADE RELATION & BUSINESS VOLUME OF
JAPANESE PRODUCT WITH GUJARAT
Japanese Companies in Gujarat
Japanese company Indian company Product/sector/area
Kowa Company Ltd. Adani port Ltd. Cargo Handling & Port
Infrastructure.
Chiyoda Corporation L&T Engineering
Matsushita Electric
Matsushita Lakhanpal
battery India
Dry Cell Battery
C.ITOH & co.Ltd. Reliance industries
Ltd.
Refining Of Crude Oil &
Organic Chemicals
Hitachi Life & Home
Solution Inc.
Hitachi Life & Home
Solutions India Ltd.
Air Conditioners.
Hitachi Displays JCT Electronics Electronics
Ricoh Company Ltd. Ricoh India Ltd. Facsimile,Transceiver,photoco
piers
Japan Metal Gasket
Company
Banco product
Automobile cylinder Gasket
Kyoto Machinery Texprint Engineers Industrial Machinery
Nippon
Corporation
Sanso
Indox India Ltd. Technology For Cryogenic
Tanks
Seiki Kogyosho
Power Build Elecon
Gears Ltd.
Geared Motors And Reducers
Nichimen India Gelatine
andChemicals
Chemicals
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Name of company in Gujarat
No Company name Industry City
1 Asahi Songwon Industries Manufacturing of inks Ahmedabad
2 Dentsu Marcom
Pvt. Ltd.,
Ahmedabad Branch Advertising
Ahmedabad
3 DIC India Ltd., Ahmedabad Factory
Manufacturing & sales of printing
inks
Ahmedabad
4 Erbis Engineering
Co
5 IFFCO-Tokio
General Insurance
Co. Ltd
6 IL & FS Education
& Technology
Service Ltd
7 JTB Jupiter
Express Services
Pvt. Ltd
Ahmedabad Branch Sales &
service for medical& other
professional equipment
Ahmedabad Branch on-life
insurance
Ahmedabad Branch Education
services
Ahmedabad Branch Forwarding
Ahmedabad
Ahmedabad
Ahmedabad
Ahmedabad
8 JUKI INDIA Pvt. Ltd Ahmedabad Service Center
Import and re-sell of machinery
Ahmedabad
9 Kintetsu World
Express (India)
Pvt.Ltd
10 Mitsui O.S.K. Lines
(India) Pvt.Ltd.,
Ahmedabad BranchI nternational
freight forwarding
Ahmedabad Branch Shipping
Ahmedabad
Ahmedabad
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11 ORIX Auto
Infrastructure
ServicesLtd
Ahmedabad BranchAuto leasing
Ahmedabad
12 Ricoh India Ltd. Ahmedabad Branch Photocopying
machines &printers
Ahmedabad
13 Tata Teleservices
Limited
Gujarat Office Mobile
telecommunication services
Ahmedabad
14 Terumo Penpol Ltd. .Ahmedabad Sales Office
Production of blood packet
Ahmedabad
15 Yokohama India
Pvt. Ltd
16 IFFCO-Tokio
General Insurance
Co. Ltd
17 Indo Japan Pen
Mfg. Co. Pvt. Ltd
18 L&T-MHI Turbine
Generators Pvt.Ltd
19 Span Nihon
Kohden
DiagnosticsPvt. Ltd
Ahmedabad Branch Sales of
passenger cartyres
Surat Branch Non-life insurance
Surat Factory Manufacturing of
pen
., Head Office Manufacturing and
sales of steam turbine & generator
Production of hematoro gictest
medicine
Ahmedabad
Surat
Surat
Surat
Surat
20 Ricoh India Ltd., Gandinagar Branch Photocopying
machines &printers
Gandinagar
21 L & T Chiyoda Ltd Plant design Vadodara
22 L&T-MHI Boilers
Pvt. Ltd
Vadodara Branch Manufacturing
and sales of coal firing boiler
Vadodara
101

Japanese Interested In Gujarat
Japanese investment in the state is poised to rise in the coming years,
members of the delegation who accompanied chief minister on the Japan
tour, said on Saturday.
“A large number of Japanese companies have evinced interest in coming to
Gujarat. We are confident that massive investments will be made by
Japanese companies in Gujarat in the coming years,” MaheshwarSahu,
principal secretary, industries department, told media persons.
Japanese investment in Gujarat would be mainly in automobiles, auto
ancillary, solar panel manufacturing and in textiles to a certain extent, he said.
“The Japanese government and industry are very serious on expanding ties
with Gujarat. Currently, only 29 Japanese companies have presence in
Gujarat. This number is poised for a big jump in the next couple of years,” he
added.
Sahu said that the visit was a highly successful one and would open doors for
enhanced co-operation between Gujarat and Japan in various sectors.
ZydusCadila CMD, Pankaj Patel, who was one of the delegation members,
too said that Japanese businessmen had shown a lot of interest in Gujarat.
“There were fruitful discussions on enhancing investment, tourism and cultural
activities during the tour,” Patel said.
ParimalNathwani of Reliance Industries said that Gujarat occupies an
important place in the scheme of things of Japanese companies.
“The treatment given to the CM during the tour was similar to that given to a
PM. It seems that the Japanese have full trust in the chief minister’s
leadership,” he said.
Sudhir Mehta, CMD of Torrent Group, said that chief minister Modi’s visit to
Japan in 2007 is now bearing fruit.
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Japan-Gujarat: potential
Scope for Japanese companies in Gujarat
• Infrastructure, including real estate Devalopment
• Transport infrastructure project such as Mass Rapid Tansit systems for
Rail and bus
• Ports, including port & cargo management ,integrated Solution in
Marine Logistics.
• It, ICT, ITES, Hogh-end Electronics
• Japan companies Can set up IT and Electronics Industrial Park
• Engineering-Jointly develop an auto –ancillary industrial park for export
of auto components
• Chemical and Allied industries-technology Transfer
• Tourism –Theme Park, Tourist Trails, Special Entertainment Zones.
Gujarat is celebrating 2006 as tourism year
• Healthcare-Gujarat accounts for 31% of the country’s Medical Tourism.
• Biotechnology, Nano-Science, Electronics, Communication
Technology, etc.
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Japanese Companies Turnover In Gujarat Manufacturers
1] Plasto processors
Export of sesame seeds7) export of garbage bags/jumbo bags. Our group
turnover exceeds 200 corer Rs.We interested in offering salt for industrial and
consumer use in any form and in quantity of about 10,000 m. T. Per
month.We are also been awarded internaional price for quality of our salt.
Busi.
Telephone: 91-2836-253382,Address: Shed No 306, Kasez, Gandhidham,
Gujarat, India.
2] UMA OFFSET
Uma offset of Business : Manufacturer, Exporter Number of Employees : Upto
10 People Turnover : Upto US$ 0.25 Million (or upto Rs. 1 Crore
Approx.)BusinessType: Manufacturer Product/Service: gift bag,children
book,paper bag,calendar,Annual report-books,Printed flyers,educational
book,poster,leaflates,box,br.
Telephone: 91-79-25626324Address: G-4, Madhavpura Market, Shahibaug,
Ahmedabad, Gujarat, India.
3] Pushpak Metals
Company PUSHPAK METALS was established in the year 1986 having
current turnover of Rs. 4 Crore appx. Let us introduce ourselves with some
important information. Pushpak Metals, the company is engaged in Indenting
of Metal and Scrap of all kinds and cater to the respective Industry & trade.
Havin.
Telephone: 91-0-9879158417Address: OPP. Bhidbhanjan Hanuman Mandir,
Ahemdabad, Gujarat, India
104

4] Airolam Limited
Airolam isA 100 crore rupees turnover group is now into laminate industry with
a vision to satisfy increasing demand of decorative laminate in various
sectors. Airolam limited is located at Gujarat which is 70 kilometers away from
Ahmedabad. However, with a proper infrastructure and humid less wheth.
Telephone: 91-2770-240572Address: Dalpur Village, Ananpur Approach
Road, Ta. : Pratij, Dist.
5] SHREE MARUTI TIMBERS
ASTRUCTURE6 COMPNY Profile(1) Business Type manufacturer &
supplier(2) Turnover 1.2 crore per year3) Primary competitive advantages
world class quality,reasonable price Business Type: Manufacturer, Trading
Company,Distributor/WholesalerProduct/Service:PALLETS,BOXES,CAREAT
S,PLYW.
Telephone: 91-02646-223127 Address: PLOT NO 88 / 1, TIMBERMARKET,
G. I. D. C, ANKLESHWAR, Gujarat,
Trade policy of Japan
Export policy of Japan
For many years, export promotion was a large Problems in Japanese
government policy. Government officials known that Japan needed to import
to produce and develop, and it needed to produce exports to pay for
those imports. After 1945, Japan had complexity exporting enough to pay for
its imports until the mid-1960s, and resultant deficits were the reason for
export support programs and import restrictions.
The trust in the need to promote exports is early strong and part of Japan's
self-esteem as a "processing nation." A meting out nation have to import raw
materials but is capable to pay for the imports by accumulation value to them
and exporting some of the output. Nations grow stronger economically by
moving up the industrial ladder to produce products with greater value added
to the basic inputs. Rather than letting markets accomplish this movement on
105

their own, the Japanese government felt the economy should be guided in this
direction through industrial policy.
Japan's methods of promoting exports have taken two paths. The first was to
develop world-class industries that can originally substitute for imports and
then competition in international markets. The second was to provide
incentives for firms to export.
During the first two decades after World War II, export incentives took the
form of a mixture of tax release and government support to build export
industries. After joining the International Monetary Fund (IMF) in 1964,
however, Japan had to go down its major export motivation — the total
exception of export income from taxes — to comply with IMF procedures. It
did maintain into the 1970s, however, special tax handling of costs for market
development and export promotion.
Once constant trade deficits came to an end in the mid-1960s, the need for
export promotion policies diminish. In effect all export tax incentives were
eliminate over the lessons of the 1970s. In the 1980s, Japan continued to use
industrial policy to promote the growth of new, more complicated industries,
but direct export promotion measures were no longer part of the rule package.
The 1970s and 1980s saw the manifestation of policies to control exports in
certain industries. The great success of some Japanese export industries
created a reaction in other countries, either because of their success per se or
because of allegations of unjust competitive practices. Under General
Agreement on Tariffs and Trade (GATT) rule, nations have been averse to
raise tariffs of import quotas. Quotas violate the guidelines, and raise tariffs
goes beside the general trend among industrial nations. Instead, they have
resorted to realistic the exporting country to "freely" restrain exports of the
wrong product. In the 1980s, Japan was to a certain extent willing to bring out
such export chains. Among Japan's exports to the United States, steel, color
tube sets, and automobiles all were subject to such chains at a variety of
times.
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Import policy of Japan
Postwar era
Japan begins the postwar period with heavy import barrier. In effect all goods
were subject to government quotas, many face high tariffs, and MITI had
authority over the part of the foreign exchange that companies needed to pay
for any import. These policies were justified at the time by the weakened
position of Japanese industry and the country's unrelieved trade deficits.
The main force for change during has been international obligation that is,
reply to foreign, rather than domestic, and force. The result has been a
extensive, unwilling process of reducing barriers, which has irritated many of
Japan's trade partners.
Japan has been a participant in the major rounds of tariff cutting discussions
under the GATT structure — the Kennedy Round completed in 1967,
the Tokyo Round completed in 1979, and the Uruguay done in 1993. As a
outcome of these agreements, tariffs in Japan cut down to a low level. Upon
complete accomplishment of the Tokyo Round agreement, Japan had the
lowest regular tariff level amongst industrial countries—2.5 percent, compared
with 4.2 percent for the United States and 4.6 percent for the European
Union (known as the European Community before November 1993).
1980s
Japan's quotas also drop. From 490 items under quota in 1962, Japan had
only twenty-seven things under quota in the mid-1980s, and that number drop
again late in the decade to twenty-two with proceed agreements planned to
come into result in the early 1990s, which would reduce the number again.
But those products unmoving under quota prove to be highly visible and were
the object of complaint by exporting countries. The drop of controlled things in
the late 1980s resulted from Japan's loss of a GATT case brought by the
United States regarding import limitations on twelve agricultural products. In
adding, heavy weight from the United States led to an agreement that Japan
would end import quotas on beef and citrus fruit in 1991.
107

1990s to 2010
The stop working of the Japanese asset price bubble in the early 1990s and
the following Lost Decade helped matters. Discount markets opened the
sharing chains, and several company turned to foreign trade and investment
to avoid losses and even insolvency. Products of Japanese companies that
were manufactured in South-Asian countries were reimported at lesser prices.
The Japanese consumer also changed: Economic problems forced many
Japanese to look for cheap prices first and care about national pride or better
quality later.
Most popular companies in Gujarat
INDO NISSIN FOODS LIMITED
Indo Nissin Foods, the manufacturers of the internationally popular Brands of
Instant Noodles, 'Top Ramen' and 'Cup Noodles' was established in India with
the financial and technical collaboration of Nissin Food Products Company
Limited, Japan, a 3 Billion US $ Company which has based its growth on
anticipating and meeting consumer needs since it created the instant noodle
market in 1958.
Indo Nissin formulated the 'Smooth Noodles' - Smoodles, which has become
a catch phrase with the youth. It has its production facilities in Haryana from
where it rolls out Top Ramen in stylishly packed, four out-of-the-world flavors -
Masala, Chicken, Tomato and Curry and Cup Noodles in Spicy Veg, Tangy
Chicken and Mast Masala flavors.
Indo Nissin Foods Limited, a subsidiary of Nissin Food Products Company
Limited, Japan, was incorporated in 1988 and is committed to developing
brands that communicate the wholesome taste, satisfaction and FUN of
instant noodles along with food safety and customerenjoyment.
It is 50 years since we pioneered Instant noodles, but our eyes are still set on
the future, wondering what will be the next new product, and the next, and the
one after that.
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Panasonic Energy India Company Limited
Vadodara, Gujarat Product
Dry Battery
Panasonic eyes 70% growth in state
Consumer durables major Panasonic India is eyeing a turnover of Rs 500
crore from Gujarat this financial year, which would be a growth of 70 per cent
over last fiscal.
The company’s subsidiary Panasonic India Ltd is confident of doubling sales
turnover this fiscal to Rs 4,500 crore from Rs 2,200 crore last year and
gaining market shares in key categories that it is present in, Daizo Ito, chief
executiveWork force: - 12650 people in India
Turnover: Panasonic India registered sales of Rs 5,500 crore (USD 1042
million) in FY 2011 and an estimated turnover of Rs 10,000 crores (USD 1940
million) in FY 2012. The company has recently invested USD 300 million in
the country to set up an R&D and manufacturing facility and on various
marketing initiatives.
Maruti Suzuki India Limited
Type
Public
Traded as BSE: 532500
NSE: MARUTI
BSE SENSEX Constituent
Industry
Automotive
Predecessor(s) Maruti Udyog Limited
Founded 1981
Headquarters
New Delhi, India
109

Key people
Products
Revenue
Shinzo Nakanishi
(CEO & MD)
Automobiles
37,522 crore (US$6.83 billion) (2010-11
Net income 2,288 crore (US$416.42 million) (2010-11
Employees 6,903 (2011)
Parent
Website
Suzuki Motor Corporation
www.marutisuzuki.com
About Maruti Suzuki
• Maruti Suzuki is India and Nepal's top automobile producer and the
market leader in the car part, both in terms of volume of vehicles sold
and income earned. Awaiting recently, 18.28% of the company was
owned by the Indian government, and 54.2% by Suzuki of Japan. The
BJP-led government held an initial public offering of 25% of the
company in June 2003. As of 10 May 2007, the government of India
sold its full share to Indian financial institutions and no longer has any
chance in Maruti Udyog.
• Maruti Udyog Limited (MUL) was establish in February 1981, though
the real make commenced in 1983 with the Maruti 800, based on the
Suzuki Alto kei car which at the time was the only modern car on hand
in India, its only competitor- the Hindustan Ambassador and Premier
Padmini were both around 25 years out of date at that point. Through
2004, Maruti Suzuki has produced over 5 Million vehicles. Maruti
Suzuki is sell in India and various countries, depending upon export
orders. Models similar to Maruti Suzukis (but not affected by Maruti
Udyog) are sold by Suzuki Motor Corporation and manufactured in
Pakistan and other South Asian countries.
• The company export more than 50,000 cars annually and has an
actually large domestic market in India selling over 730,000 cars
110

annually. Maruti 800, till 2004, was the India's leading selling solid car
ever since it was launched in 1983. More than a million units of this car
have been sold international so far. now, Maruti Suzuki Alto tops the
sales charts but Maruti Suzuki's speedy has taken over this titles by
19000 models in April 2012.The company imports diesel engines for all
maruti Suzuki cars from the fiat motors the great Italian company.The
German car company Volkswagen has a 19.9% non-controlling
shareholding in Suzuki Motor Corporation.
• To be paid to the large number of Maruti 800s sold in the Indian
market, the term "Maruti" is generally use to refer this solid car model.
Its built-up services are placed at two services Gurgaon and Manesar
south of Delhi. Maruti Suzuki’s Gurgaon facility has an installed
capacity of 900,000 units per annum. The Manesar services, launched
in February 2007 include a vehicle gathering plant with a capacity of
550,000 units per year and a Diesel Engine plant with an annual ability
of 100,000 engines and transmission. Manesar and Gurgaon services
have a combined capability to produce over 14,50,000 units annually.
More than part the cars sell in India are Maruti Suzuki cars. The
company is a supplementary of Suzuki Motor Corporation, Japan,
which own 54.2 per cent of Maruti Suzuki. The rest is owned by public
and financial institutions. It is listed on the Bombay Stock Exchange
and National Stock Exchange of India
Industrial relations
• Since its founding in 1983, Maruti Udyog Limited experienced few
problems with its labour force. The Indian labour it hire readily received
Japanese work culture and the new built-up process. In 1997, there
was a change in ownership, and Maruti became predominantly
government controlled. Shortly thereafter, conflict between the United
Front Government and Suzuki started. Labour unrest started under
management of Indian central government. In 2000, a major industrial
relations issue began and employees of Maruti went on an indefinite
111

strike, demanding among other things, major revisions to their wages,
incentives and pensions
• Employees used slowdown in October 2000, to press a revision to their
incentive-linked pay. In parallel, after elections and a new central
government led by NDA alliance, India pursued a disinvestments
policy. Beside with many other government own companies, the new
management planned to sell part of its stake in Maruti Suzuki in a
public contribution. The worker's union oppose this sell-off plan on the
ground that the company will lose a major business benefit of being
subsidised by the Government, and the union has superior safeguard
while the company remains in control of the government.
• The standoff between the union and the management continued
through 2001. The management refused union demands citing
increased competition and lower margins. The central government
prevailed and privatized Maruti in 2002. Suzuki became the majority
owner of Maruti Udyog Limited
(Rs. in Million)
Year Net Sales Year Net Sales
2006-07
1,45,922
2009-10
3,01,198
2007-08
1,78,603
2010-11
3,58,490
2008-09
2,03,583
2011-12
3,47,059
• Hansalpur (Gujarat), Aug. 25:
• Japan’s Suzuki Motor Corp (SMC) Chairman Osamu Suzuki today
visited the site here where its subsidiary Maruti Suzuki India plans to
set up a new manufacturing unit at an investment of Rs 4,000 crore.
112

PRESENT TRADE RELATIONS AND BUSINESS
VOLUME OF DIFFERENT PRODUCTS WITH INDIA
TRADE VOLUME OF JAPAN AND INDIA
Chart 1: State wise Japanese Business Establishment in India
113

Chart 2: Volume of world merchandise exports, 1990-2013 Indices, and
1990=100
Figures for 2012 and 2013 are projections. Source: WTO Secretariat
Chart 3: Japan’s Trade in India
Source: http://www.icrier.org/pdf/takahiro_sato.pdf
114

Chart 4: India’s Trade in Japan
Source: http://www.icrier.org/pdf/takahiro_sato.pdf
TRADE RELATIONS
India’s exports to Japan more than doubled from US$2.5 billion in 2005-06
to US$5.2 billion in 2010-11, growing at the average rate of 16 per cent per
annum. However, the share of Japan in India’s global exports shrank from
2.4 per cent in 2005-06 to 2.1 per cent in 2010-11. As a result, Japan
slipped from the 10 th to 12 th position in India’s exports over the last five
years. India’s imports from Japan nearly doubled from US$4.1 billion in
2005-06 to US$8.1 billion in 2010-11, with an average rate of growth of 14.9
per cent per year. However, the share of Japan in India’s global imports
declined from 2.7 per cent in 2005-06 to 2.3 per cent in 2010-11.
Consequently, Japan’s position in India’s imports slipped significantly from
the 10 th to 16 th over the last 5 years.
115

Total trade between India and Japan had been low at US$13.3 billion in
2010-11 as against India’s trade with the US at US$43.2 billion and that
with its now, the biggest trade partner, China, at US$59.2 billion. India’s
trade with China recorded an annual average compound growth rate of 27.4
per cent during 2005-96 to 2010-11 against 15.3 per cent for India-Japan
trade and 10 per cent for India-US trade
FOREIGN RELATION OF JAPAN
Japan is the world's 3 rd -largest economy and a major economic power both in
Asia and globally. Japan has diplomatic relations with nearly all independent
nations and has been an active member of the United Nations since 1956.
Japanese foreign policy has aimed to promote peace and prosperity for the
Japanese people by working closely with the West and supporting the United
Nations.
In recent years, the Japanese public has shown a substantially greater
awareness of security issues and increasing support for the Self Defense
Forces. This is in part due to the Self Defense Forces' success in disaster
relief, including the 2004 Indian Ocean tsunami; its participation in
peacekeeping operations in Cambodia in the early 1990s and
reconstruction/stabilization efforts in Iraq in 2003-2008; and its response to
Japan’s 2011 Tohoku disaster. However, there are still significant political and
psychological constraints on strengthening Japan's security profile. Although a
military role for Japan in international affairs is highly constrained by its
constitution and government policy, Japanese cooperation with the United
States through the 1960 U.S.-Japan Security Treaty has been important to the
peace and stability of East Asia. In recent years, there have been domestic
discussions about possible reinterpretation or revision of Article 9 of the
Japanese constitution. All postwar Japanese governments have relied on a
close relationship with the United States as the foundation of their foreign
policy and have depended on the Mutual Security Treaty for strategic
protection.
116

Japan has pursued a more active foreign policy in recent years, recognizing
the responsibility that accompanies its economic strength, and has expanded
ties with the Middle East, which provides most of its oil. In 2006, Japan's
Ground Self Defense Force completed a successful 2-year mission in Iraq.
The Air Self-Defense Force's (ASDF) airlift support mission in Iraq formally
ended in December 2008. In January 2010, the Diet also ended the Anti-
Terrorism Special Measures Law that allowed for Japan's Maritime Self
Defense Force refueling activities in support of Operation Enduring Freedom
in the Indian Ocean. Since 2009, Japan has been an active partner in
international counter-piracy efforts off the Horn of Africa.
Japan increasingly is active in Africa and Latin America--concluding
negotiations with Mexico, Chile, and Peru on Economic Partnership
Agreements (EPAs)--and has extended significant support to development
projects in both regions. Japan's economic engagement with its neighbors is
increasing, as evidenced by the conclusion of EPAs with Singapore, the
Philippines, Thailand, Malaysia, Indonesia, Brunei, Vietnam, and India.
Chart 5: Growth in volume of world merchandise trade and GDP, 2005-
13 (Annual % change)
Figures for 2012 and 2013 are projections. Source: WTO Secretariat
117

Economy
The Japanese economy is one of the third largest in the world. Only the USA
and China have a higher GNP. The Japanese currency is the Yen.
Exports
Japan's main export goods are cars, electronic devices and computers. Most
important trade partners are China and the USA, followed by South Korea,
Taiwan, Hong Kong, Singapore, Thailand and Germany.
Imports
Japan has a surplus in its export/import balance. The most important import
goods are raw materials such as oil, foodstuffs and wood. Major supplier is
China, followed by the USA, Australia, Saudia Arabia, South Korea, Indonesia
and the United Arab Emirates.
Industries
Manufacturing, construction, distribution, real estate, services, and
communication are Japan's major industries today. Agriculture makes up only
about two percent of the GNP. Most important agricultural product is rice.
Resources of raw materials are very limited and the mining industry rather
small.
Economic climate
Japan is currently experiencing an unprecedented period of political and
economic turmoil. The Global Economic Downturn has exposed Japan’s
continuing heavy reliance on export led growth. Net exports and corporate
capital expenditure are sharply down. Domestic consumption is less affected;
however, buoyed also by government stimulus packages, as elsewhere.
The current upheaval, which has mostly been driven by external factors, is
now starting to have far-reaching effects on certain sectors of the
manufacturing economy and society in general. Most affected are the bluecollar
and technical workers, as is common around the globe. This is likely to
118

have a significant impact in terms of changes in social values, behavior and
consumption patterns.
The Japanese Government has spent several hundred trillion yen on
economic stimulus packages in an effort to encourage a recovery. However,
the success of these packages is still in doubt as stagnation continues and
Japan’s banks continue to hold large non-performing loans.
Changes that are evidence of the ‘new economy’ emerging in Japanese
business practices include:
• High interest in IT-based solutions
• Demand for innovative cost effective business solutions which can include
imported product and services
• Breakdown of traditional interlinked business relationships
• Introduction of business-to-business (B2B) and business-to-consumer
(B2C) e-commerce ventures
• Speeding up of the business decision making processes
• Introduction of Western management practices
Japan faces a number of challenges going forward, some economic and
some structural. Many of these longer term drivers for change also favor
Australia. Japan’s ongoing reliance on imported minerals and energy, and
growing concerns over food safety and food security (with food self-sufficiency
hovering at around 40 per cent) are priorities for them.
119

TRADE POLICY OF JAPAN
Export policy of Japan
For many years, export promotion was a large issue in Japanese
government policy. Government officials recognized that Japan needed to
import to grow and develop, and it needed to generate exports to pay for
those imports. After 1945, Japan had difficulty exporting enough to pay for its
imports until the mid-1960s, and resulting deficits were the justification for
export promotion programs and import restrictions.
The belief in the need to promote exports is early strong and part of Japan's
self-image as a "processing nation." A processing nation must import raw
materials but is able to pay for the imports by adding value to them and
exporting some of the output. Nations grow stronger economically by moving
up the industrial ladder to produce products with greater value added to the
basic inputs. Rather than letting markets accomplish this movement on their
own, the Japanese government felt the economy should be guided in this
direction through industrial policy.
Japan's methods of promoting exports have taken two paths. The first was to
develop world-class industries that can initially substitute for imports and then
compete in international markets. The second was to provide incentives for
firms to export.
During the first two decades after World War II, export incentives took the
form of a combination of tax relief and government assistance to build export
industries. After joining the International Monetary Fund (IMF) in 1964,
however, Japan had to drop its major export incentive — the total exemption
of export income from taxes — to comply with IMF procedures. It did maintain
into the 1970s, however, special tax treatment of costs for market
development and export promotion.
Once chronic trade deficits came to an end in the mid-1960s, the need for
export promotion policies diminished. Virtually all export tax incentives were
eliminated over the course of the 1970s. Even JETRO, whose initial function
is to assist smaller firms with overseas marketing, saw its role shift toward
import promotion and other activities? In the 1980s, Japan continued to use
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industrial policy to promote the growth of new, more sophisticated industries,
but direct export promotion measures were no longer part of the policy
package.
The 1970s and 1980s saw the emergence of policies to restrain exports in
certain industries. The great success of some Japanese export industries
created a backlash in other countries, either because of their success per se
or because of allegations of unfair competitive practices. Under General
Agreement on Tariffs and Trade (GATT) guidelines, nations have been
reluctant to raise tariffs or impose import quotas. Quotas violate the
guidelines, and raising tariffs goes against the general trend among industrial
nations. Instead, they have resorted to convincing the exporting country to
"voluntarily" restrain exports of the offending product. In the 1980s, Japan was
quite willing to carry out such export restraints. Among Japan's exports to
the United States, steel, color television sets, and automobiles all were
subject to such restraints at various times.
Import policy of Japan
Postwar era
Japan began the postwar period with heavy import barriers. Virtually all
products were subject to government quotas, many faced high tariffs,
and MITI had authority over the allocation of the foreign exchange that
companies needed to pay for any import. These policies were justified at the
time by the weakened position of Japanese industry and the country's chronic
trade deficits.
The main impetus for change throughout has been international obligation
that is, response to foreign, rather than domestic, and pressure. The result
has been a lengthy, reluctant process of reducing barriers, which has
frustrated many of Japan's trading partners.
Japan has been a participant in the major rounds of tariff cutting negotiations
under the GATT framework — the Kennedy Round completed in 1967,
the Tokyo Round completed in 1979, and the Uruguay Round completed in
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1993. As a result of these agreements, tariffs in Japan fell to a low level on
average. Upon complete implementation of the Tokyo Round agreement,
Japan had the lowest average tariff level among industrial countries—2.5
percent, compared with 4.2 percent for the United States and 4.6 percent for
the European Union (known as the European Community before November
1993).
1990s to 2010
The collapse of the Japanese asset price bubble in the early 1990s and the
following Lost Decade helped matters. Discount markets opened the
distribution chains, and several companies turned to foreign trade and
investment to avoid losses and even bankruptcy. Products of Japanese
companies that were manufactured in South-Asian countries were imported at
lower prices. The Japanese consumer also changed Economic problems
forced many Japanese to look for cheap prices firs and care about national
pride or superior quality later.
JAPAN-INDIA TRADE IN GOODS
Table 1: Japan's Merchandise Trade with India
( Percentage Share)
Year Export Imports
2004 0.5 0.6
2005 0.6 0.6
2006 0.7 0.7
2007 0.9 0.7
2008 1.0 0.7
2009 1.1 0.7
2010 1.2 0.8
Source: JETRO (Japan External Trade Organization).
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Bilateral Trade
In 2007-08, Japan ranked third amongst India’s trading partners.
Bilateral trade between Japan and India has been rising steadily since 2003.
From $4.37 billion in2003-04, it raised to $6.5 billion in 2005-06, $7.45 billion
in 2006-07 and to $10.17billion in 2007-08. The growth rate during this fiveyear
period was 35.56 per cent. The Confederation of Indian Industry (CII)
estimates that the trade volume could touch $15 billion by 2010 if issues like
trade facilitation and non-tariff barriers were addressed.
Exports
Exports from India to Japan touched $3.85 billion in 2007-08, an increase of
34.73per cent over the $2.86 billion registered in 2006-07. In the first quarter
of the Indian fiscal year 2008, India exported goods worth $786.10 million.
India’s exports to Japan consist largely of raw materials, minerals such as
raw iron ore, agricultural products, marine products, pearls, semi-precious
stones and imitation jewelry. In 2007- 08, Japan imported $1276.24 million
worth of minerals from India, an increase of185.883per cent from 2006-07.
This was followed by $451 million worth of natural pearls, semi-precious
stones and imitation jewelry. Other items exported to Japan include
agricultural products, handicrafts, cotton, carpets, leather garments and
goods, fresh fruits/juices and dried fruits, spices and herbs. Japan is also the
largest importer of Indian shrimps .In an attempt to boost exports of organic
products to Japan, the Agricultural and Processed Food Products Export
Development Authority (APEDA) has suggested that the Japanese
government accord equal status to Indian certification agencies. The step will
go a long way in reducing the cost of these products in the Japanese market.
At present, the prices of products exported to Japan are significantly high ET
that hose exported to other countries. This is because the cost of certification
by Japanese agencies is much higher than that charged by Indian agencies.
Once Indian agencies get equivalence of standards and certification with
their Japanese counterparts, the former, accredited by APEDA, can certify
organic products. Organic products that are exported by India include
basmati rice, honey, spices, tea, garments and some dry fruits.
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Chart 6: Quarterly World exports of manufactured goods by product,
2008Q1-2011Q4 Year-on-year % change
Source: WTO Secretariats estimates based on mirror data for available reporters in the
Global Trade Atlas database, Global Trade Information Systems.
Imports
According to data provided by the Indian commerce ministry, India’s import
from Japan were worth $6.32 billion in 2007–08, up by 37.70 per cent from
the 2006-07 level of $4.59 billion. For the period April to June 2008, imports
from Japan were worth $2.196 billion. India’s imports from Japan have been
increasing because of the rising import volumes of commodities like heavy
machinery, iron and steel, mineral fuels and mineral oils, surgical equipment,
organic chemicals, plastic, rubber etc.
India imported $2.17 billion worth of heavy machinery from Japan in 2007-
08Thiswas followed by $814 million worth of electrical machinery and
equipment. The figure below presents India’s trade with Japan from 2000-
2007. India's Exports to Japan India's Imports from Japan
Source: CMIE, India Trades
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STATE WISE BUSINESS VOLUME OF JAPAN
Table 2: Location wise business establishment of Japan in India
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JAPAN'S EXPORTS TO INDIA
JAPAN'S IMPORTS FROM INDIA
Overview of Japan’s FDI At the end of 2007, Japan’s overseas investments
stood at $543 billion1, up from $450billion at the end of 2006 and $387 billion
at the end of 2005. Japan’s outward FDI stock at the end of 2007 accounted
for 3.5 per cent of the world’s outward FDI stock and 4.2 per cent of the
outward stock of developed countries. The inward FDI stock values were
$100.3 billion at the end of 2005, $97.3 billion at the end of 2004 and$89.8
billion at the end of 2003. In 2007, the inward FDI stock of Japan stood at
$132billion.FDI outflows from Japan have risen consistently, especially during
2005-2007. In2005, FDI outflows stood at $457 billion; it increased to $502
billion in 2006 and further to $736 billion in 2007. Hence, Japan ranked high
on the outward FDI performance index with a rank of 44 in 2007. In terms of
the inward performance index, however, it ranked a low 135.In 2006 and
2007, there was a surge in FDI flows into Japan, reflecting a revival of interest
in the Japanese economy. Investment inflows into Japan rose from $2.8billion
in 2005 to $6.5 billion in 2006 and further to $22.5 billion in 2007. However,
the story is vastly different in 2008 and 2009 because of the global economic
crisis and Japan’s descent once again into a major recession.
Chart 7: Real GDP growth and trade of euro area economics, 2008-11
Annualized % change over previous quarter
Source: OECD Quarterly national accounts.
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JAPANESE INVESTMENT IN INDIA
With growing economic strength, India has adapted its foreign policy to
increase its global influence. Consequently, Indo-Japanese relations have
under paradigm shift and there is now an ongoing effort to build a strategic
and global partnership between the two countries. According to a survey
conducted by the Japan Bank for International Co-operation (JBIC) in 20082,
India has become the most favored investment destination for long term
Japanese investments.
In the portion of the survey dealing with promising countries (including
quantifications of countries viewed as promising for business expansion),
China maintained the top position, but the number of companies viewing
China as promising is declining. On the other hand, more companies are
viewing India, Russia, Brazil, and other emerging countries as promising.
The number of companies that view India as promising has increased to a
level on par with China.
The “growth potential of the local market” was listed as the top reason for
India being a promising destination, a response revealing the hopes placed
on the future growth of the Indian market. Listed third is the presence of
“qualified human resources”, for which India got relatively higher marks than
other countries. The biggest issue for India remains its “underdeveloped
infrastructure”. Infrastructural improvements are believed to be making
progress, but the demands of companies seeking to make forays into India
also appear to be on the rise. India’s robust economic growth in recent years
has not gone unnoticed in Japan.
Japan is now the sixth-largest FDI investor in to India. Cumulative FDI
inflows from Japan touched $2,324 million during 2000-08. This includes
investments in acquisition of existing shares, RBI’s NRI schemes, stocks
swapped and advance pending issue of shares etc. Though Japan has
remained one of the top ten investors into India since the 1990’s, its
contribution to India’s FDI inflow was only 4.29 per cent of total FDI inflows
between 1991 and 2007. Investment volumes have also fluctuated. FDI
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inflows from Japan increased during 2000-2002 but declined thereafter until
2006, only to rise again in 2007.
Japanese FDI in India
Japan’s foreign direct investment (FDI) into India had been low till very
recently with the cumulative FDI inflows from Japan during the ten-year
period from April 2000 to March 2010 at just US$3.7 billion. This constituted
just 3.4 per cent of total FDI inflows India received during that period and
Japan’s ranking had been 7 th in this regard. A significant change happened
since then with the cumulative FDI inflows from Japan shooting up to 7.1
billion by September 2011. With this, Japan’s share in cumulative FDI inflows
to India during April 2000 to September 2011 jumped to 4.8 per cent and
Japan’s rank improved to the 5 th position2. This may be compared to
Singapore, which is now the second largest foreign direct investor in India
with a share of over 10 per cent during April 2000 to September 2011.
Although South Korean companies like Hyundai, LG and Samsung have
made their high-profile presence in India, the share of South Korea in the
cumulative FDI inflows to India had been below one per cent till September
2011.
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Table3 : FDI Flows with Respect to Japan, China and India ( 1990-2010)
1990 1995 2000 2005 2006 2007 2008 2009 2010
FDI Inflows (US$ Million)
Japan 1 806 41 8 323 2 775 - 6 507 22 550 24 426 11 939 - 1 251
China 3 487 37 521 40 715 72 406 72 715 83 521 108 312 95 000 105 735
India 237 2 151 3 588 7 622 20 328 25 350 42 546 35 649 24 640
FDI Inflows as a percentage of gross fixed capital
formation
Japan 0.2 0.0 0.7 0.3 - 0.6 2.2 2.1 1.1 - 0.1
China 3.5 15.0 10.0 7.7 6.4 6.0 5.8 4.3 4.1
India 0.3 2.2 3.3 2.9 6.6 6.2 9.7 8.2 4.5
Source: UNCTAD.
Chart 8: FDI inflow and outflow
Chart 9: FDI inflow and outflow
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INDIA-JAPAN RELATIONS: A PARTNERSHIP FOR
PEACE AND PROSPERITY
In 1949, Prime Minister Jawaharlal Nehru donated an Indian elephant named
Indira to the Ueno Zoo in Tokyo. He hoped that Indira would bring joy into the
lives of Japanese children, still suffering from the after math of World War II.
That gesture is typical of the exchanges between these two Asian nations.
Because India’s and Japan’s relationship faces no structural impediments,
their interactions are generally marked by goodwill. From 2000 on, the two
countries have come closer together, and their ties have expanded beyond
economics to security. A close India-Japan link could affect the strategic
configuration of Asia, provided the two countries overcome the bureaucratic
and political factors that still inhibit their relationship. Expanding Economic
Cooperation: Until the early 1990s, economic relations between India and
Japan revolved primarily around aid. The focus of the bilateral relationship
began to expand after 2000. Aid remained a central component of the
relationship, however, with India becoming the largest beneficiary of
development loans from Japan in 2003. Between 2005 and 2006, India
received approximately $1.5 billion dollars from Japan to improve
infrastructure and eradicate poverty. In June 2006, the Japanese and Indian
governments released a report of the India-Japan joint study group that
encouraged comprehensive economic cooperation, including increasing trade
and investment flows. The report’s release signified the expansion of the
bilateral economic relationship beyond official development assistance and
aid. 2007 was India-Japan friendship year, with 120 trade events and a
40percent increase in Japanese foreign direct investment in India.
Infrastructure and Industry: India views a strengthened economic relationship
with Japan as a way to increase investment in its infrastructure. In the next few
years, India needs to invest at least $300 billion in its infrastructure to sustain
its high growth rates. Without this investment, the nation will be unable to lift a
third of its population out of poverty. The governments of Japan and India
have successfully partnered on infrastructure projects in the past. The Delhi
Metro, their best-known, recent project, stunned Indians grown cynical about
publicly financed infrastructure by finishing on time and on budget. Japan
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views economic cooperation with India as an opportunity to diversify its
commercial relations beyond those concentrated in China and the United
States. A nation with a rapidly aging population, Japan can use investments in
India to benefit from India’s highly educated and growing workforce. Japanese
officials have also expressed admiration for India’s IT, pharmaceutical, and
biotech industries. Tokyo has pledged to provide Delhi with a soft loan of $4.5
billion to fund the first leg of the Delhi-Mumbai railway freight corridor, which
will connect India's northern states with ports in the country's west. It also
committed to supporting the rest of the corridor, which if completed would cost
$90 billion and span six states. The Japanese government has also promised
to encourage five Japanese companies to set up industrial bases along the
corridor. The recent economic crisis has slowed the project and created talk of
Japan revising its financial commitments downward. However, the rapid
construction of the freight corridor would enhance India’s manufacturing
industry while creating a real and enduring foundation for the India-Japan
economic partnership. Private Sector Ventures: Beyond government
initiatives, the India-Japan bilateral economic relationship is being enhanced
by the integration of the nations’ private sectors. Japanese companies have
made substantial investments in Indian industry. Mitsubishi financed a
petrochemical plant in Haldia (near Calcutta). In June 2008, Japanese
pharmaceutical company was due mainly to: increase substantial investments
in Indian industry. Mitsubishi financed a petrochemical plant in Haldia (near
Calcutta). In June 2008, Japanese pharmaceutical company Daiichi Sankyo
bought a 34.8 percent controlling stake in India’s largest pharmaceutical firm,
Ranbaxy Laboratories. A few months later, Japanese telecom giant NTT Do
Como bought a 26 percent stake in Tata Teleservices Ltd. (TTSL).The flagship
Japanese investment in India is stilcar manufacturer Maruti-Suzuki, which is
celebrating its 25th year in India. The company sells one of every two cars
sold in India, exemplifying the success of Japanese investors in India. More
than 80 percent of Japanese companies in India are profitable and more than
90 percent have expansion plans. According to Japanese embassy figures,
the number of Japanese companies operating in India has increased from 260
to 560 over the last two years. The Japan Bank of International Cooperation
(JBIC) recently listed India as the number one country for strategic long-term.
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CONCLUSION
The Global Country Research Report titled on “Different Aspects of Japan”
is carried out to study it and also to know the business growth and
opportunities for India with Japan.
The supportive data is the collection which covers the different systems of
Japan like demographic profile, Pestal analysis, different economic sectors,
overview of Industry, trade & commerce, economic overview, business
overview, trade level and the trade relation & business volume of different
product with Gujarat.
From the demographic profile of Japan it has been known their population,
sex ratio, education level, unemployment rate, age wise distribution of
population, religions, languages and household pattern.
From the political profile, Japan's constitution became effective on May 3,
1947 and the legal system is strict as the prime minister has the authority to
appoint and dismiss the ministers of the states. In 2011 Japan stood third
largest economy of the world. It has also been concluded that Japan uses the
latest technology like the robotics technology used in industries and for
educational purpose and well known for the electronics in the world.
The environment of Japan in organizations is strict & hierarchical,
interdependent, participative management, long-term planning, vertical
society, private decision making. The primary agriculture sector of Japan is
formed of farming, foresting and fly-fishing. The GDP of manufacturing in
2010 was 19.47%.
From this study the import & export prohibition and the role of government in
the trade & commerce has also been known. The Economy of Japan in the
last quarter of 2010 went down and before the earthquake in 2011 it had an
emerging economy.
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A large number of Japanese companies have evinced interest in coming to
Gujarat. There are many companies in the Gujarat and have trade relations
with the Japanese companies, which prove to be beneficial to Gujarat as well
as to India. There are many scopes for Japanese companies in Gujarat
market.
It has also been concluded that in the 22 states of India, Japan has
established its business which shows the present trade relation & business
volume of Japanese product with India as well as with Gujarat.
Japan is the sixth largest FDI investor in India. The relation of Japan & India is
the partnership for peace & prosperity.
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