The recent statistics of the world trade reveals a sharp swing in international trade flows over few years. According to the recent survey report, India is accounted to be the most significant trading center with Japan. Among the south Asian Countries, India is the significant trading country with Japanese market.
India’s imports ratio from Japan increased from US $ 1364 million to US $ 2669 million in the year 1999 while the total exports declined 9.25 per cent to 5.25 per cent. The statistics in the year 2000 also depicts almost the similar import/export trend with Japan.
The composition of Indo Japan trade has undergone significant change in the recent times. There has been a shift in the primary goods to the manufacturer goods. Major India’s exports to Japan comprises of about 24 per cent of marine products, 23 per cent of gems and jewellery, 12 per cent of iron ore and about 41 per cent comprised of other products like castor oil, cashew, metals, raw cotton, semi-processed iron & steel, garments, cotton yarn fabric made-ups, etc.
As per the International Trade and recent development statistics, India’s exports to Japan of different commodity groups indicate that there has been relative increase in the percentage share in India’s total exports to Japan market from the period 1990-91 to 1998-99 in areas such as Live animals; animal products, Vegetable products, Animal or vegetable fats & oils, Prepared foodstuff; beverages, Product of the chemical, Plastics & articles thereof, Pulp of wood or of other fiber. Textile & textile articles of stone plaster, Machinery & mechanical appliances Vehicles, aircraft, vessels Optical, photographs, cinematography other manufactures articles and Works of art collector's pieces.
During that period certain commodity groups are found declining share in India’s total exports to Japan in different HS Sections, i.e. Mineral products, raw hides & skins, leather Wood & articles of wood; wood, Footwear, headgear, Umbrellas Natural or cultured pearls, Base metals & articles of base.
On the other hand, India’s total imports comprises of about 16.6 per cent of capital goods, 24.5 per cent of fuel, 6.6 per cent of food commodities and about 35.9 per cent of bulk items.
In the current situation, India and Japan are obtaining trade policies towards formation of bilateral trading agreements along with other countries of the world. Recently, India has signed bilateral free trade agreement with Sri Lanka, and is finding out to have bilateral free trade arrangements with other major trading partners in Asia.