Japan offers ¥ 23. Billion of subsidies to Japanese companies to transfer to India
Japan's Ministry of Economy, Trade & Industry said it would provide subsidies in excess of Rs 1,615 crore to Japanese manufacturers shifting their manufacturing facilities from China, stressing India
By extending the reach of the subsidy program, Japan aims to minimize its reliance on a given region and develop a system that can provide a reliable supply of medical materials and electronic components even in an emergency, reports Nikkei Asian Analysis.
Japan also aims to decentralize its supply chain by reducing its supply of medical and electronic products reliance on a single country. In its supplementary budget for 2020, the Japanese government has allocated $221 million (or Rs 1,615 crores) as a subsidy to enable companies to relocate and migrate to India and across the ASEAN region.
Japan is the latest in a rising list of countries actively finding ways to de-couple China's economies and firms. Taiwan introduced a structured strategy in 2019, aimed at attracting investment from China.