Another twist has risen in the world scenario, soon after this announcement from Japan.
Japan has planned to offer subsidies of about Rs.1,615 crore to companies shifting their base from China to India and Bangladesh.
The Japanese government has allocated Rs.1,615 crore worth $221 million in its 2020 supplemental budget for the subsidy to encourage companies to shift their base to India and across the ASEAN region. The prime idea of this is to expand the Japanese government programme aimed at diversifying the supply chain. By expanding the scope of subsidy programme, Japan aims to reduce its dependence on a particular region and build a system for stable supply of medical or electronic equipment even during an emergency.
China was Japan’s biggest trading partner before the times of lockdown due to COVID 19. But, during the lockdown the imports have been reduced to half in February. This greatly affected the supply chain. Thus, Japan has come up with this new concept. There opens another phase for the global production companies.
