A BRIEF ANALYSIS OF INDIA-JAPAN BILATERAL TRADE: A TRADE INTENSITY APPROACH

Bilateral trade between India and Japan have maintained over a period of time. But the volume of trade between them is at a low level, relative to the size of their economies. This paper is an attempt to measure strength and nature of bilateral trading relationship between India and Japan. Several statistical indices can be used to measure trade relations between two nations. This paper has used one such index such as trade intensity. Trade intensity indices have been calculated for the period from 2001 to 2011. Both countries ` bilateral trade relationship described in terms of intensity indices helps to identify how intensively the countries are trading with each other. Thus, this study found that intensity between two countries is low. However, from the analysis made it is obvious that both countries have much trade potential to reap between them