Impact of Japans Earthquake on Globe and Indian Economy Japan was hit by an earthquake of magnitude 8.9 on March 11.

This massive earthquake led to major human tragedy in Japan killing much more than 30000 people, leaving numerous injured, and many other still missing. The earthquake and the tsunami also struck nuclear installations in Fakushima Dai-chi energy plant. Due to disruption within the energy supply, the coolant cant be supplied to the nuclear reactors in the required quantity, which raises the risk of radiation leak. Already traces of radiations have already been detected in some of the food items and also the water in Tokyo, which is situated 220 KM south with the Fakushima. Impact on Japanese Economy Because Japan meets about 30% of its energy from nuclear based power plant, energy supply to most of the parts in the country has been affected leading to closure of numerous factories. There has also been widespread harm to the infrastructure because of which there has been supply disruptions of numerous with the crucial raw material components. Most of the automakers including Toyota, Honda, and Nissan have closed their plants for the lack of raw supplies, and also the decreased energy supply. Producers of semiconductors, LCD displays, batteries etc have also shut down their plants for a minimum of next 2-3 weeks. A few of the main ports of Japan have been affected by the crisis impacting each the exports and imports based industries within the nation. According to one estimate, price of reconstruction is expected to cross $300 Billion. Japan will find it challenging to fund this construction due to its high debt which is already 200% of its GDP. Also the nation has witnessed lacklustre growth more than last two decades, and this earthquake triggered crisis may further push Japanese economy in downward spiral. Impact on Worlds economy Japan is the third largest economy within the World, following US and China. It is also the second largest buyer of US funds. Since Japan will require cash to fund its reconstruction, it may money within the US bonds. This may force US fed to purchase these bonds, and which will induce liquidity crunch in the US market. Similarly Japanese investment firms have made lots of investment across worlds capital markets. The pullout of the Japanese fund might result in fall in stock costs in these markets in brief term. The other main impact of Japans earthquake will probably be on the crude oil. Since most of the nuclear power plants of Japan have went offline, Japan will depend more and much more on crude oil to meet its power requirements. Japan has number of oil fired power plants, and to meet its power needs, it might purchase much more oil from the globe marketplace. The crude oil costs, which had been already on upward trend, will see a further spike as a result of this. The rise in crude oil costs will impact the worlds economy in brief term. Japan will be the main producer of numerous with the items such as auto components, semiconductors, LCD displays and so on. Disruptions to the

production of these major items will result in the supply chain disruptions of these items in the world marketplace. This will delay the production of high end gadgets like smart phones, iPads, LCD Television, laptops etc and vehicles. This may make a dent within the manufacturers' profit. Impact on India economy Indian stock marketplace dropped by 0.8% on the news of Japanese earthquake. But the marketplace recovered next day. Killer earthquake which hit Japan is expected to have a marginal impact on the Indian economy. Most direct impact will be the pull out of Japans investments within the Indian capital market. Japanese investment firms will draw cash from the Indian marketplace to fund the Japanese reconstruction. This will have a negative impact on the stock market in brief term. Japanese have also created investment in number of essential infrastructure projects within the country like Delhi Metro, Delhi Mumbai corridor and so on. These projects might see delay because of lack of availability of funds. Surge within the crude oil costs due to increased demand of oil in Japan will also impact the Indian economy which is already reeling below inflation. Automobile businesses will probably be negatively affected by the crisis, because they depend on Japan for the supply of many of their critical auto components. Also due to boost in the value of Yen (as a result of lack of yen supply), there will be an boost in the price of these auto components. Japans refinery capacities have also been affected by the quake. This will have positive effect on Indian petrochemical firms like Reliance. Indian IT industry will be marginally impacted by the crisis, because a lot of the IT firms derive only 1-2% of their revenue from Japanese marketplace. Only IT firm which has high exposure to Japan marketplace is Nucleus Software Exports which derives 30% of its revenue from the nation. Crisis will have a minor impact on Indian exports, since Japan accounts for much less than 3% of total Indian exports. Therefore the recent earthquakes which hit Japan will have marginal impact on Indian economy By on One Piece