Contents

Chapter 1
India and the World----------------------------------------------------------------------------------

1

Chapter 2
Indo-Japanese Economic Relations --- Japanese Companies Seek to Catch Up---------------------------------------------------------------------------------- 17

Chapter 3
Sino-Indian Relations --- From Hostility to Mutual Cooperation and Complementation---------------------------------------------------------------------------------- 27

Chapter 4
US-Indian Relations --- A Multifaced Partnership Under Construction---------------------------------------------------------------------------------- 41

Chapter 5
Relation Between India and Europe, Russia, the Middle East, and Africa--- From Traditional Friendly Countries to the Frontiers---------------------------------------------------------------------------------- 53

Chapter 6
Relations with Northeast Asia (South Korea and Taiwan) --- South Korean Companies Take theLead, Taiwanese Corporations also Start Active Deployment---------------------------------------------------------------------------------- 67

Chapter 7
India-ASEAN Relations --- The Formation of a Production Network---------------------------------------------------------------------------------- 79

Chapter 8
Trade & Investment Relations between India and the Countries of South Asia--- EPAs are Effective in Facilitating---------------------------------------------------------------------------------- 91

Japan Center for Economic Research “Asia Research” ReportJapan Center for Economic Research “Asia Research” ReportTables
Table 1.1 The state of India’s omnidirectional diplomacy ------------------------------------------

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Table 1.2 India’s main export items (FY2010) -------------------------------------------------------

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Table 1.3 India’s main trade partners and export/import ratio ------------------------------------- 10
Table 2.1The number of locations of Indian expansion by Japanese Corporations (As ofOctober 2011)----------------------------------------------------------------------------------- 21
Table 3.1 The state of Sino-Indian bilateral trade ---------------------------------------------------- 34
Table 4.1 Breakdown of primary products in Indian trade with the US (FY2010) -------------- 46
Table 4.2 Breakdown by country of FDI to India ---------------------------------------------------- 47
Table 5.1 Trade between the Middle East and India (FY2010) ------------------------------------ 59
Table 6.1 India-Korea CEPA ---------------------------------------------------------------------------- 71
Table 6.2 Comparison of liberalization rate for India of the Japan-India EPA and theIndia-Korea CEPA ---------------------------------------------------------------------------- 71
Table 6.3 Consumer electronics share in the Indian market (FY2009) --------------------------- 74
Table 7.1 India’s export destinations ------------------------------------------------------------------- 81
Table 7.2 India’s import sources ------------------------------------------------------------------------ 81
Table 7.3 Direct investment in India (2010) ---------------------------------------------------------- 82
Table 7.4 Direct investment in ASEAN (2010, net basis) ------------------------------------------ 82
Table 7.5 India’s import of machinery from ASEAN, top ten items ------------------------------ 85
Table 7.6 Export destinations from Singapore and Malaysia of “semiconductors, thermionicvalves and tubes” (2010) -------------------------------------------------------------------- 86
Table 7.7 Export destinations from Singapore and Malaysia of “parts for office machines”(2010) ------------------------------------------------------------------------------------------ 87
Table 7.8 Export destinations from Singapore and Thailand of “electrical machinery andapparatus not elsewhere specified” (2010) ------------------------------------------------ 88
Table 7.9 Export destinations from Thailand and the Philippines of “parts for tractors andmotor vehicles” (2010) ---------------------------------------------------------------------- 88
Table 7.10 Export destinations from Thailand and Singapore of “internal combustion engines”(2010) ------------------------------------------------------------------------------------------ 89
Table 8.1 The economic situation for South Asian Countries (2010) ----------------------------- 92
Table 8.2 Comparative advantage commodities in three South Asian countries ---------------- 97
Table 8.3 Trade between India and Three South Asian countries: Commodity breakdown
comparison (2007, %) ------------------------------------------------------------------------ 99
Table 8.4 South Asian nations and FTAs -------------------------------------------------------------- 100
Table 8.5 Trade complementarity index among South Asian countries --------------------------- 101

Japan Center for Economic Research “Asia Research” ReportFiguresFigure 1.1 India’s export trend --------------------------------------------------------------------------

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Figure 1.2 Indian inward/outward investment -------------------------------------------------------- 13
Figure 2.1 The trend of Japan-India trade ------------------------------------------------------------- 17
Figure 3.1 The GDP share of the tertiary sector ------------------------------------------------------ 33
Figure 3.2 Direct investment between India and China --------------------------------------------- 36
Figure 4.1 India’s primary trade partners -------------------------------------------------------------- 45
Figure 5.1 India’s trade with major countries/regions ----------------------------------------------- 55
Figure 5.2 Trade between India and Africa ----------------------------------------------------------- 62
Figure 6.1 India’s external trade ------------------------------------------------------------------------ 69
Figure 6.2 The direction of India’s trade with South Korea and Taiwan -------------------------- 69
Figure 7.1 India’s exports to ASEAN, fraction by item----------------------------------------------- 83
Figure 7.2 India’s import from ASEAN, fraction by item -------------------------------------------- 83
Figure 8.1 Economic growth rates for South Asian countries -------------------------------------- 93
Figure 8.2 South Asian exports ------------------------------------------------------------------------- 94
Figure 8.3 Domestic direct investment (flow) for South Asian countries ------------------------ 94
Figure 8.4 Proportion of exports to India from Three South Asian countries -------------------- 95
Figure 8.5 Export intensity for three South Asian countries relative to India -------------------- 96
Figure 8.6 Export intensity for India in relation to three South Asian countries ----------------- 96

Japan Center for Economic Research “Asia Research” Report