Japan Offers Subsidy Worth Rs 1,615 Crore to Companies Shifting From China To India

New Delhi : In the wake of the Corona epidemic, to strengthen its economy, Japan is now seeing India and Bangladesh as a major market recovering from the epidemic. In view of this, Japan has offered incentives to companies shifting from China to India. Japan wants to reduce supply dependency from China in this regard.

According to Nikki’s report, Japan’s goal of expanding the scope of the subsidy program is to reduce its dependence on a particular region and develop a system that can provide a sustainable supply of medical supplies and electronic equipment in an emergency.

The Government of Japan has allocated 23.5 billion yen in the 2020 Supplementary Budget for subsidies to encourage companies to expand their manufacturing sites in the ASEAN region. India and Bangladesh have also been included in the list of relocation sites for projects, bringing flexibility to the ASEAN-Japan supply chain with the second phase of applications commencing on 3 September.

Nikki says the subsidy being given by Japan to companies moving their manufacturing sites from China to India amounts to several billion yen. At present, the supply chain of Japanese companies mostly depends on China. But supplies were cut during the Corona epidemic.