President’s Message

Inauguration of IJCCI Centre of Excellence

Dear Friends,
My warm greetings to allof you.
IJCCI Centre of Excellence
is picking up momentum.
You have in your hands
the second issue of ourNewsletter as also a copyof the Resource Paper.
Committees have been constituted to activate various
Cells: Manufacturing & Engineering; IT & Electronics;
Infrastructure; Legal & Corporate Affairs. Our Think
Tank is coming out with the first White Paper, aquarterly publication from our Centre ofExcellence. And, the kingpin of all the activities, theCentre for Japanese Studies, the nucleus of a
Research Body on Japan for promoting andco-ordinating our future activities on Indo-Japan
educational, cultural and economic activities,will be inaugurated soon.
The aim of IJCCI, as all members are aware is tofurther our one and only aim of strengthening
Indo-Japan cooperation in every possible way and I
seek your support in making IJCCI a very useful andvibrant bilateral Chamber.
I have a special request to make to all our members.
All these activities involve a lot of resources not onlyin number of members but also in terms of financial
resources. Each issue of Newsletter costs overRs.15,000 besides the cost of other publications. I
would therefore appeal to all the members tocontribute liberally to the coffers of IJCCI andstrengthen its financial muscle.

On 15th May 2015, an event was organised by IJCCI toinaugurate the IJCCI Centre of Excellence. Hon’ble Mr. Seiji
Baba, Consul General of Japan in Chennai, was the Chief
Guest. Dr. Pon Kothandaraman, former Vice Chancellor –Madras University, and Mr. B.S. Raghavan, former Chief
Secretary – West Bengal-Tripura, were the Guests of Honour.

During the event, Gateway, the bi-monthly newsletter of IJCCI,
and a Resource Paper on Japan were released by Mr. Seiji Baba.

I am confident that I would receive full support fromevery one of you in this noble cause of building ourChamber.
With warm regards,N Kumar
A cross-section of the audience at the function.

Know JETROJETRO (Japan Exter nal Trade Organisation), a Japanese
Government organisation promoting trade and investment, offersa host of services for doing business with Japan. Foreigncompanies planning to start business in Japan will be provided
free consultation services, market entry information andassistance to identify a business partner in Japan by JETRO.

U

nder the Invest Japan BusinessSupport Center, (IBSC), JETRO
offers office space with minimum
required infrastructure to run theoffice such as desk, chair, telephone,
fax and broadband connection. It
also provides common facilities suchas conference rooms, multipurpose
hall and business library. These
services can be used for up to 50
days without any fee, giving
adequate time for foreign companies
to establish their own office setupin Japan.
IBSCs are conveniently located near
major government offices in Tokyo,Yokohama, Nagoya, Osaka, Kobeand Fukuoka. IBSCs can be accessedat https://www.jetro.go.jp/en/invest.

J E T R O C h e n n a i p ro v i d e s f re e
consultation facilities for Indianbusinessmen to establish office inJapan. Mr. Hidehiro Ishiura, DirectorGeneral, heads the Chennai JETRO
Office.
JETRO invites you to SUWA Area
Industrial Messe 2015
A high precision industrial
technology exhibition will be
conducted in Nagano Prefectureduring October 15-17, 2015. Suwaregion in Nagano Prefecture is
known for supply of computer andelectronic components, opticaldevices, medical devices, automotiveparts, semiconductor processingequipment,environmentalequipment, etc. There are over 2000
SME manufacturers and distributors
located in this region.
JETRO is extending invitation tointernational businessmen interested
in visiting the exhibition. JETRO will
also help organise one-to-one
business meetings between theparticipants and the Japanesecompanies besides organising
visits to companies in Suwa
region. Business houses keen toestablish business links with theJapanese companies through thisexhibition can contact Mr. Veera
Babu Veerla (INC@jetro.go.jp, Tel:044-3927-0100) of Chennai JETRO
office for guidance. Visit http://www.suwamesse.jp for more details.

India-Japan Macroeconomic and Development Indicators – A Comparison
Japan, in spite of being bereft of muchnatural resources and dependent on
imports, has a global portfolio of exports
and has evolved into a global powerhousein electronics, naval, automotive androbotics to mention a few. The famed
Japanese manufacturing processes havebeen transported globally. Japan needs
India today as much as India needs Japan.

2Recent trends are refreshing to hear:
Comprehensive Indo-Japan co-operationagreements have been signed in
Infrastructure, Bullet Trains, IndustrialCorridors, Defense, etc. Japan has
committed USD 40 billion over the next
5 years subject to caveats where India has
to deliver on her promises. All this augurs
well for the relationship between the two
great nations, subject to India keeping her
end of the bargain and Japan ensuring asustained flow of resources and knowhow.
The key once again lies in friendship andmutual respect for each other in thesincerest of terms.

Indicators (2013 Figures)
Surface Area (sq.km)
Land Description
Population
Population Growth (%)
Population Density
GDPGDP Growth
Per Capita Income (PPP Method)
Inflation
Exports (% of GDP)
Imports (% of GDP)
Cash Surplus / Deficit
Sectorwise GDP Contribution[a] Agriculture (% of GDP)[b] Industry (% of GDP)[c] Services (% of GDP)
Poverty headcount (% of Pop.)
Governance
Major Religions
Adapted from: data.worldbank.org

JapanIndia

0.37 Million
Archipelago
127.3 Million
0%349/sq.km
4.9 Trillion2%
USD 37,550-1%
16%19%–

3.2 Million
Peninsula1.2+ Billion
1%421/sq.km
1.9 Trillion
7%
USD 5,350
6%
25%
28%
-4%

1%
26%
73%
0Constit. Monarchy
Shinto, Buddhism

18%
31%
51%
22%
Parliamentary System
Hinduism, Islam, Christianity,Jainism, Sikhism,Zorastrianism, Buddhism

The Samurai, the famous warrior
class of ancient Japan, went on
to become the ruling military elite,
thus occupying one of the highest
status in society. They were fierce
warriors who served a master fromthe nobility or shogunate. They lived
and died by a strict way of life called
the Bushido. The philosophy ofBushido integrated the best elementsof Confucianism and Zen Buddhism.
Trained from a young age, theyobserved strict rules of engagement
in any battle and were loyal to theirmasters. For the Samurai death waspreferable to dis-honour and it was
not uncommon for a disgraced
Samurai to take his own life througha process of ritual suicide that wascalled Seppuku. Sometimes a
Samurai was ex-communicated andand he had to live his life as anomad without a master. Such a
Samurai was called Ronin. They
practised and mastered the martial
arts and their choice of weapons
were swords known as Katanas
Daggers and Bows. The legend of
the Samurai is immortalised by thevirtues of courage, loyalty, discipline

and the pursuit of an honourable
life. It is perhaps reasonable to saythat the romance of the Samurai wasexported to the world by the famous
D i r e c t o r- A c t o r p a i r o f A k i r a
Kurosawa and Toshiro Mifune.
Although, a historical vignette today,
the life of Samurai and the lessons
one can learn from them are to thisday a guide to a virtuous life.
Samurai gear today is a much sought
after museum collection. One of thebest collections in the world ishoused in the Ann and Gabriel
Barbier Mueller Museum in Dallas,Texas, USA.
Please do see http://samurai
collection.org/mac/index_web.html

Japan’s summer is famous for its heat, humidity andrain. The season roughly lasts from June to August.
When the rain ends (by mid-July), this country lights
up with the summer festivals. Two of the moresignificant festivals are Hanabi and Obon.

Hanabi or the fireworks festival is held in the summer months
in various parts of Japan. Each area has it on a different day.
The famous Hanabi Taikai or firework displays are in Tokyo’s
Sumidagawa River on the last Saturday of July, Miyajima andNagaoka in early August. Fireworks were traditionally lit toward off evil spirits and bad luck.
Obon (or Bon), a festival of more gravity and a time forfamily reunions, is believed to be the time when the ancestral
spirits return to this world and visit their dear ones. Families
return to their native places during the Obon week and get
ready to receive the spirits of their ancestors by visiting familygraves. The house is cleaned and flowers and special food areoffered at the Buddhist Altar (Butsudan) within the house.
Beautiful lanterns or Chochin are lit at the Altars. On the firstday of Bon, Mukae Bon, the spirits are welcomed home. On
the last day, Okuri Bon, the spirits are guided back to the graves. Both days see beautiful lanterns or fires lit at the entranceof houses to guide the spirits, with the custom of Toro Nagashi, where lanterns are set afloat on the river, signifying the sendoff to the spirits. The Bon Odori or folk dance associated with the festival is a magnificent and lively sight! Bon is observed in
mid-July and mid-August.

3Goods and Services TTaxax (GST)The Central Government is pushinghard to meet the deadline of 1st April,2016 for the rollout of Goods andServices Tax (GST). GST is undoubtedly
the most significant tax reform thatIndia is carrying out. It has thepotential to push India’s GDP growth
by a few notches. Here is what you
need to know about the gamechanging proposal.

Proposed structure of GST
GST, also known as VAT in somejurisdictions like the UK, is a single
unified tax on goods and services
administered by the Federal
Government in most countries.
The GST proposed to be implemented
in India is a dual GST in thatevery supply of goods and services
would be subject to State GST (SGST)
and Central GST (CGST). Interstate
supply of goods and services would
be subject to Integrated GST (IGST)

which is the sum of SGST andCGST rate.
The broad contours of the GST
proposed to be implemented are:Central Government would levy CGST
which would subsume Central Excise
Duty, Additional Excise Duties, Excise
Duty levied (Medicinal and ToiletriesPreparation), Service Tax, AdditionalCustoms Duty, commonly CVD, Special
Additional Duty of Customs – SAD andSurcharges and Cess.
State Governments would levy SGST
which would subsume VAT / Sales Tax,Entertainment Tax (unless it is leviedby the local bodies), Luxury Tax,
Taxes on lottery, betting and gambling,
State Cess and Surcharges in so far as
they relate to supply of goods andservices and Entry Tax not in lieu ofOctroi.
Levies not subsumed in GST are Tax
on Alcoholic Beverages, State Excise
Duties, Tax on Petroleum Products likeExhibition on Indian Buddhist Art
Mr. Rajnath Singh,
Hon'ble Minister for
Home Affairs of Indiaand Mr. Kosaburo
N i s h i m e, H o n ' b l eState Minister ofInternal Affairs andCommunications ofJapan inaugurated theexhibition on IndianBuddhist Art on 16thMarch, 2015 at Tokyo
National Museum.

Crude, Motor Spirit (including ATF),
HSD and Natural Gas – as at present
Central and State levies would
continue. Petroleum Products would
be subsumed later as may be decided
by the GST Council. The levy of SGST,CGST would be concurrent on thesame tax base and would therefore
be not cascading.
Customs duty would continue to belevied as at present. Imports would be
subject to IGST. CGST and SGST rateof tax is not yet decided.
The GST credit setoff mechanism is
proposed as follows:
SGST and CGST can be set off only
against the respective levy andcross utilisation of CGST and SGST
would not be allowed except in thecase of inter-State supply of goods
and services.
IGST Credit may be used to set off
against IGST, CGST and SGST inthat order.

(Continued in the next issue)

Global Investors Meetin Chennai in September
The Tamil Nadu Govt is organising a
Global Investors Meet on September
9 & 10, 2015.
Seven countries including Japan are
participating in the Meet.
IJCCI is very appreciative of the Govt’se ff o r t s t o w a rd s g e t t i n g J a p a n e s einvestments into the State.

Mr. Rajnath Singh, Minister for Home Affairs of India, studying adisplay at the exhibition on Indian Buddhist Art, with the IndianAmbassador looking on.

International Yoga Day in TokyoAs the Hon'ble Prime Minister of India, Mr. Narendra Modi started the International
Day of Yoga in New Delhi on 21st June, 2015, India's Ambassador to Japan,Ms. Deepa Wadhwa flagged off the event in Japan.

I n r e c e n t d a y s , Ta m i l N a d u h a s
been attracting a number of Japanesecompanies. With the dynamic
efforts of the Hon’ble Chief Minister,
D r. J . J a y a l a l i t h a , t h e p l a n n e d
Global Investors Meet in September is
expected to spur Tamil Nadu’s economyto great heights. It is a good opportunity
for Japanese businessmen toe x p l o r e a n d e x p l o i t Ta m i l N a d u ’s
investment potential.
Visit www.tamilnadugim.com for details.

EDITORIAL BOARD: N Kumar, President, IJCCI; N Krishnaswami, Chairman, IJCCI; Krishna Prasad, Managing Director, Mot Juste Communication
Services Pvt. Ltd.; P S Suman, Partner, A K Mylsamy & Associates LLP; Hufriz Wadia, Partner, Kochhar & Co.; Arjun Balakrishnan, Founder, Dharmic Solutions;
Suguna Ramamoorthy, Secretary-General, IJCCI. For Private Circulation Only.
Editor: Suguna Ramamoorthy; Publisher: IJCCI; Designing & Printing: Mot Juste Communication Services Private Limited, 98410 15081.
This issue ofis sponsored by Avalon Technologies Private Limited.

Indo-Japan Chamber of Commerce & Industry (IJCCI): No. 21, Kavignar Bharathidasan Road, Teynampet, Chennai 600 018, Tamil Nadu, India.
Phone: 044-24352010 / 044-24354779. Email: indo-japan@ijcci.com. Web: ijcci.com