Effects of the earthquake in Japan for the Indian economy and world

Japan has experienced an earthquake of magnitude 8.9 on 11 Taken in March. This earthquake in Japan has caused great human tragedy, killing more than 30,000 people, leaving many people injured and many others are still missing. The earthquake and tsunami has also affected nuclear power plants in Fakushima Dai-chi-power station. Due to the interruption of power, cooling can not be delivered to the nuclear reactors in the necessary amount, which increases the risk of radiation leaks. Even traces ofRadiation found in some of the food and water in Tokyo, which is 220 miles south of Fakushima.

Impact on the Japanese economy - Japan Since about 30% of its electricity from nuclear energy is plant-based power to provide electricity to much of the country affected, resulting in closure of many factories. He also severe damage to infrastructure, for which there was an interruption of supplies from many of the critical raw materials are alreadyComponents. Most car manufacturers like Toyota, Honda and Nissan have closed their plants due to lack of raw materials and supply reduction. Semiconductor manufacturers have LCD displays, batteries, etc., also shut down their plants for at least the next 2-3 weeks. Some of the largest ports in Japan from the crisis that affects both exports and imports hit industries in the country. According to one estimate, the cost of rebuilding expected to cross $ 300Billion €. Japan will be difficult to design because of its high debt to fund the already 200% of GDP. The country has experienced slow growth over the past two decades, the earthquake caused the crisis could push the Japanese economy continues a downward spiral.

Earthquake & Tsunami In Japan

Impact on the world economy - Japan is the third largest economy in the world after the United States and China. It is also the second largest buyer of U.S. funds. Japan needed the money to finance the reconstruction,could cash in U.S. Treasuries. This will force the Fed to buy these bonds, which induce a liquidity crisis in the U.S. market. Japanese companies also have many investments in international capital markets. Could lead to the withdrawal of Japanese funds to fall short in the stock prices in these markets. The other major influence on the Japanese earthquake will be the crude oil. Then it went offline are more nuclear power plants in Japan, Japan will always dependThe crude oil to meet its energy needs. Japan has many oil-fired plants and power to meet its energy needs, could buy more oil from the world market. Crude prices, which were already increasing, will see another peak accordingly. The increase in crude oil prices, the global economy in the short term. Japan is the largest producer of many products, including components for the automotive, semiconductor, LCD, etc. interruptions in the production of these important objectsbring the noise in the supply of these items on the world market. This production of high-end devices such as smartphones, iPads, LCD TV, laptops etc., and vehicle delay. So that a dent will benefit producers.

Impact on the economy of India - Indian stock market was down 0.8% on news of the earthquake in Japan. But the market rallied the next day. Killer earthquake in Japan, will likely have a limited impact on the economy of India. The most direct impactthe withdrawal of Japanese investment in Indian capital market. Japanese investment firms to withdraw money from the Indian market for the reconstruction of Japanese Finance. This will have a negative effect on stock market short-term available. Japanese have also made investments may be delayed in several major infrastructure projects in the country like Delhi Metro, Delhi Mumbai corridor, etc. These projects due to lack of availability of funds to be seen. Soaring oil prices because ofincrease in oil demand in Japan for the Indian economy, which is already faltering under the inflation. Car manufacturers will be negatively affected by the crisis because of Japan for the supply of many of its critical components for the automotive industry. Even for the increase in the value of the yen (yen as a result of lack of supply), there will be an increase in the cost of these components for the automotive industry. Japan's refining capacity is also affected by the earthquake. This is a positiveImpact on Indian companies like Reliance Petrochemicals. Indian IT industry will be somewhat influenced 'by the crisis, because most IT companies are only 1-2% of their turnover from the Japanese market. He just IT companies, high exposure to the Japanese market, Nucleus Software Exports, 30% of revenues from the land. Crisis little impact on Indian exports, since Japan for less than 3% of total Indian exports. Thus, the recent earthquakes in Japanlittle impact on the economy of India

Effects of the earthquake in Japan for the Indian economy and world