India'S Exports to Japan: Problems and Issues

The emergence of Japan as one of the leading economic super powers as well as one of the trading surplus nations in the world has been possible due to an interaction between economic, social and political factors in the decade of the 1980's. There are certain vital factors namely inductive planning for the economy, restrictions on possible competition between two most important facets [firms and imports]. low interest rates and minimum controls on the firms and industry which have made Japan as a global force. In recent years, Japanese Planners have initiated a market oriented policy to deal with economic issues based upon trade liberalisation, increasing privatization and reducing fiscal deficits. As a result, Japanese manufacturers constitute one-third of the Japanese total Gross Domestic Product (GDP). This has been possible because of the ability of Japanese to adapt quickly to the fast changing business environment all over the World. In recent times it has been noticed that Japan's imports are dominated by food and raw materials [particularly minerals and fuels]. This situation is of great advantage to major producing nations of food and minerals. Added to this, Japan has also reduced some tariffs and non-tariff barriers. Hence developing economies should capitalise the existing trends and situation for enhancing their exports to Japan in a big way. India should also come forward with action oriented policy for increasing exports to Japan especially traditional items or farm exports for earning substantial amount of foreign exchange which is badly needed by India to overcome its BOP problem. With this background, the present paper reviews critically trends in Indo-Japanese Trade in the decade of the 1980's and will also suggest a strategy for increasing exports to Japanese market which has great potentials to absorb India's goods. This paper has three section. First section reviews trends in Indo-Japanese Trade in the decade of the 1980's, Second section highlights the major constraints standing in the way of increasing exports to Japan. Third section suggests an action plan or strategy for increasing exports to Japanese market.