India

India is a country which has been developing since 1947, when it got independence
from British rule. In its path, India have faced many problems like Resource
management, Employment, Health services and even fulfilling the basic needs which
are Food, Shelter and Clothes.

When British people left India, the country was down on its knees and adopted various
methods to come up with the solutions to the challenges faced. Agricultural
development, Employment, Industrialization and other Government measures were
taken into consideration in the beginning and gradually the country became what it is
today.

Japan
World War II left about 3 million dead and many cities in ashes from U.S. fire bombings.
Close to 9 million people were homeless. The country named Japan did not lose hope
and did everything to make it what it was before the bombings. Whole nation stood up
and worked day and night to make Japan one of the greatest and fasted growing
countries ever.

With the same energy, commitment and discipline that characterized the process of
modernization in the Meiji period, the Japanese pulled themselves up by their
bootstraps after World War II and transformed their nation into a strong democracy and
an economic dynamo.
Indian Economy VS Japanese Economy
India and Japan lying on two geographical areas have much difference between them.

Though India and Japan might show some similarities in certain aspects like family life,

both countries have a lot of differences.

India is officially called as the Republic of India and lies in South Asia. Japan, which is

officially called as Nippon, is an island country that lies in East Asia. While India is

divided into many states, Japan is divided into prefectures. In area, Japan is very much

smaller to India.

While Japan is an archipelago, India is part of a larger subcontinent. Japan comprises

of a single race. On the other hand, India consists of many races. Unlike Japan, one

can come across a lot of religions in India. Moreover, In India, caste system is very

much prevalent, which is not seen in Japan society.

When comparing the economy, Japan is more economically stable than India. Japan is

also more industrialized than India. It can also be said that Japanese people are more

hardworking than Indians.

India and Japan cannot be compared in any sense as they are totally different in all

aspects. One can come across differences in all walks of life. Though India and Japan

are poles apart, they have some similarities also. For example, both Indians and

Japanese give much importance to family.

Difference on Economic Terms in past few years

Japan India
Terms Year Amount

Annual GDP 2018 4,971,930M.$ 2,716,750M.$

GDP per capita 2018 39,228$ 2,029$

Debt 2017 11,425,494 1,896,129

Debt (%GDP) 2017 234.98% 69.79%

Debt Per Capita 2017 90,145$ 1,416$

Deficit (M.$) 2017 -154,022 -181,573

Deficit (%GDP) 2017 -3.17% -6.68%

Expenditure (M.$) 2017 1,819,296.3 741,300.7

Education Expenditure (M.$) 2016 170,830.3 71,384.8

Education Expenditure (%Bud.) 2016 9.13% 14.05%

Gov. Health Exp.(M.$) 1998 213,704.0 21,299.1

 Economic Challenges in 2019
India
Population Growth
India ranks second after China in total population. Its population has grown 20% per
decade, leading to problems that include food deficits, sanitation deterioration, and
pollution. Although economic growth numbers look promising, the living standards of
most citizens are not changing.

China, the United States, and India are the three most egregious environmental
polluters in the world in that order. India uses coal for 75% of its power requirements,
and it has been slow to transition to cleaner energy sources. New Delhi and other cities
in India are among the most polluted in the world, and car emissions in these urban
areas are creating breathing and other health problems.

Deteriorating Infrastructure
India has struggled to improve its deteriorating infrastructure in business, education,
and healthcare. India's power grid is overstressed, and power failures have been daily
occurrences in the most developed areas of Delhi, Mumbai, and Bangalore. The need
for generators to provide power and air conditioning during power failures results in
additional costs that businesses must subsume.

Public transportation and roadways have not kept pace with population growth, and the
education infrastructure is backward with a literacy rate of 72%. India's healthcare
infrastructure is in need of reform. India provides healthcare to all its citizens, but the
90% who must use public health services and don't have private insurance through an
employer receive poor care in substandard facilities.

Corruption
The Corruption Perceptions Index (CPI) ranks 180 countries and territories by their
perceived levels of public sector corruption among experts and businesspeople. It
rendered India the 78th most corrupt country in the world in 2018.

The CPI states that efforts to curb corruption in the Asia-Pacific are having little effect,
and countries in the region are experiencing decreasing press freedoms and shrinking
civil society. Transparency International found India to be one of the worst offenders.

Doing business in a corrupt country is difficult because there is little respect for the rule
of law, there are competing government bureaucracies, and there are often unclear and
unfair regulatory and taxation systems.

Japan
Wage Growth
Since he became prime minister, Abe has pressured Japanese companies to
raise wages for workers, which he believes will create a virtuous circle of
increased consumer spending resulting in higher corporate profits that will create
room for further wage increases. His policies finally seem to be showing some
positive results. In June 2018, real wages marked their fastest annual increase in
more than 21 years with a 2.8 percent year-over-year increase. Household
income also marked its fastest gain in three years with a 4.4 percent rise over the
same time period. Signs of rising wages are encouraging for Bank of Japan
policymakers, who have long been struggling to accelerate inflation to an elusive
2% annual target.

Value-Added Tax
Consumer spending has struggled recently, in part, due to the 2014 increase in
Japan's Value-Added Tax (VAT), from 5 to 8 percent. Japan's national debt is
enormous as a percentage of Gross Domestic Product (GDP), at nearly 250
percent, and the government needs to raise revenue where it can. The VAT
was scheduled to increase further in 2017 to 10 percent, but that increase was
postponed until October 2019 as consumers struggled mightily with the
original 2014 increase.

International Monetary Fund chief Christine Lagarde is urging measures to

ensure that VAT tax hike does not hurt the country’s economic growth. “We
believe that the higher consumption tax will help fund growing health and pension
expenses, and support fiscal consolidation,” she said. "However, we also
recommend that the 2019 consumption tax increase be accompanied by carefully
designed mitigating measures to protect near-term reflation and growth
momentum. We believe that the fiscal stance should certainly remain neutral at
least for the next two years."

The Value of the Japanese Yen

From 2012 to 2016, the value of the yen against the U.S. dollar declined
approximately 30 percent, which was a boon for corporate profits. Japanese
manufacturing competes primarily with Korean, Taiwanese and Chinese
companies, and the value of the yen is a significant factor in the price
competitiveness of those products. The weaker yen made Japanese products
more compelling overseas, and profits earned in U.S. dollars or euros convert
back into greater amounts of yen, boosting locally denominated profits.
 Overview
India

India is developing into an open-market economy, yet traces of its past autarkic policies

remain. Economic liberalization measures, including industrial deregulation, privatization

of state-owned enterprises, and reduced controls on foreign trade and investment,

began in the early 1990s and have served to accelerate the country's growth, which

averaged under 7% per year since 1997. India's diverse economy encompasses

traditional village farming, modern agriculture, handicrafts, a wide range of modern

industries, and a multitude of services. Slightly more than half of the work force is in

agriculture, but services are the major source of economic growth, accounting for nearly

two-thirds of India's output, with less than one-third of its labor force. India has

capitalized on its large educated English-speaking population to become a major

exporter of information technology services, business outsourcing services, and

software workers. In 2010, the Indian economy rebounded robustly from the global

financial crisis - in large part because of strong domestic demand - and growth

exceeded 8% year-on-year in real terms. However, India's economic growth began

slowing in 2011 because of a slowdown in government spending and a decline in

investment, caused by investor pessimism about the government's commitment to

further economic reforms and about the global situation. High international crude prices

have exacerbated the government's fuel subsidy expenditures, contributing to a higher

fiscal deficit and a worsening current account deficit. In late 2012, the Indian

Government announced additional reforms and deficit reduction measures to reverse

India's slowdown, including allowing higher levels of foreign participation in direct

investment in the economy. The outlook for India's medium-term growth is positive due
to a young population and corresponding low dependency ratio, healthy savings and

investment rates, and increasing integration into the global economy. India has many

long-term challenges that it has yet to fully address, including poverty, corruption,

violence and discrimination against women and girls, an inefficient power generation

and distribution system, ineffective enforcement of intellectual property rights, decades-

long civil litigation dockets, inadequate transport and agricultural infrastructure, limited

non-agricultural employment opportunities, inadequate availability of quality basic and

higher education, and accommodating rural-to-urban migration.

Japan

In the years following World War II, government-industry cooperation, a strong work

ethic, mastery of high technology, and a comparatively small defense allocation (1% of

GDP) helped Japan develop a technologically advanced economy. Two notable

characteristics of the post-war economy were the close interlocking structures of

manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of

lifetime employment for a substantial portion of the urban labor force. Both features are

now eroding under the dual pressures of global competition and domestic demographic

change. Japan's industrial sector is heavily dependent on imported raw materials and

fuels. A small agricultural sector is highly subsidized and protected, with crop yields

among the highest in the world. While self-sufficient in rice production, Japan imports

about 60% of its food on a caloric basis. For three decades, overall real economic

growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s,

and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just

1.7%, largely because of the after effects of inefficient investment and an asset price

bubble in the late 1980s that required a protracted period of time for firms to reduce
excess debt, capital, and labor. Modest economic growth continued after 2000, but the

economy has fallen into recession three times since 2008. A sharp downturn in

business investment and global demand for Japan's exports in late 2008 pushed Japan

into recession. Government stimulus spending helped the economy recover in late 2009

and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude

earthquake and the ensuing tsunami in March disrupted manufacturing. The economy

has largely recovered in the two years since the disaster, but reconstruction in the

Tohoku region has been uneven. Newly-elected Prime Minister Shinzo ABE has

declared the economy his government's top priority; he has pledged to reconsider his

predecessor's plan to permanently close nuclear power plants and is pursuing an

economic revitalization agenda of fiscal stimulus and regulatory reform and has said he

will press the Bank of Japan to loosen monetary policy. Measured on a purchasing

power parity (PPP) basis that adjusts for price differences, Japan in 2012 stood as the

fourth-largest economy in the world after second-place China, which surpassed Japan

in 2001, and third-place India, which edged out Japan in 2012. The new government will

continue a longstanding debate on restructuring the economy and reining in Japan's

huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on

exports to drive growth, and an aging and shrinking population are other major long-

term challenges for the economy.

 India Since 1947 - I

Submitted By: Submitted To:

Bhavna Kandari SLJ-579 Mrs. Ramanpreet Kaur

Himanshu Verma. SLJ- 577

Aparna Bhaunthiyal SLJ-582

Anjali Bisht SLJ -594