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JAPAN'S EXPORTS TO INDIA<br />

JAPAN'S IMPORTS FROM INDIA<br />

Overview of Japan’s FDI At the end of 2007, Japan’s overseas investments<br />

stood at $543 billion1, up from $450billion at the end of 2006 and $387 billion<br />

at the end of 2005. Japan’s outward FDI stock at the end of 2007 accounted<br />

for 3.5 per cent of the world’s outward FDI stock and 4.2 per cent of the<br />

outward stock of developed countries. The inward FDI stock values were<br />

$100.3 billion at the end of 2005, $97.3 billion at the end of 2004 and$89.8<br />

billion at the end of 2003. In 2007, the inward FDI stock of Japan stood at<br />

$132billion.FDI outflows from Japan have risen consistently, especially during<br />

2005-2007. In2005, FDI outflows stood at $457 billion; it increased to $502<br />

billion in 2006 and further to $736 billion in 2007. Hence, Japan ranked high<br />

on the outward FDI performance index with a rank of 44 in 2007. In terms of<br />

the inward performance index, however, it ranked a low 135.In 2006 and<br />

2007, there was a surge in FDI flows into Japan, reflecting a revival of interest<br />

in the Japanese economy. Investment inflows into Japan rose from $2.8billion<br />

in 2005 to $6.5 billion in 2006 and further to $22.5 billion in 2007. However,<br />

the story is vastly different in 2008 and 2009 because of the global economic<br />

crisis and Japan’s descent once again into a major recession.<br />

Chart 7: Real GDP growth and trade of euro area economics, 2008-11<br />

Annualized % change over previous quarter<br />

Source: OECD Quarterly national accounts.<br />

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