The March 11 disaster in Japan will hit Indo-Japanese trade at least in the short-run, even though reconstruction activity in affected cities may lead to increased demand for Indian steel, experts say. “In the short-term, delivery of goods in transit will be affected...it would also have impact on exporters’ payments,” President of the Federation of Indian Export Organisations (FIEO) Ramu S Deora said.
The tourism industry also fears that the disaster may impact its revenues. “Japan recently identified India has a preferred tourism destination. However, this incident will definitely have an impact on tourism at least for the next two-three months,” STIC Travel Group Chairman Subhash Goyal said.
Operations at the Narita International Airport in Tokyo, which is a major hub for airlines and the only airport that connects Japan to India, areunlikely to start in full swing anytime soon, experts say.
Inbound business from Japan is going to take a huge hit as during the school holidays (March-April) thousands of Japanese tourist visit nearby Asian countries, he added.
According to industry estimates, about one lakh people travel between India and Japan every year, which is split almost equally between outbound and inbound travellers.
India-Japan bilateral trade stood at over $10 billion in 2009-10. India's exports to Japan comprise steel, iron ore, chemicals, while imports include machinery, mechanical parts, auto components and chemicals. With a desire to give a quantum jump to trade in goods, services and investment, the two countries had last month signed Comprehensive Economic Partnership Agreement.
“For a couple of weeks, sea cargos would be affected but air cargos will not be really impacted,” Justin Paul, formerly Professor with Nagoya University said. — Agencies
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