Japan is again preparing to give such a blow to China in business matters, which is a matter of benefit for India. In fact, Japan is preparing to give subsidy to these companies to shift the manufacturing base of two companies from China to India.
These two companies are Toyota-Tsusho and Sumida. Toyota-Tsusho is in the process of setting up a rare earth metal unit in India, while Sumida company will do business of spare parts for automobiles.
Japan showed generosity
According to a Times of India report, government sources said that there was only such effort from India to bring these companies to India, but Japan also gave subsidy to these companies to make this deal more attractive. Has decided.
What did Commerce Minister Piyush Goyal say
Sharing this news, Commerce and Industry Minister Piyush Goyal tweeted, “Japan will provide financial assistance to two companies shifting their manufacturing base from China to India. We will continue to work closely with Japan and Australia to ensure a transparent trade and investment environment under the supply chain initiative.
What is Japan’s initiative
Japan had announced an incentive in the form of subsidy to companies shifting their factories from China to ASEAN countries in September this year.
Japan has said that it will provide subsidies to those Japanese companies that manufacture their goods in ASEAN countries instead of China. Japan has also included India and Bangladesh in this list, where Japanese companies can make their products.
The Government of Japan has allocated 23.5 billion yen in the supplementary budget of 2020 as a subsidy to encourage companies to set up or expand their manufacturing plants in the ASEAN region. Japan has taken this step to reduce its dependence on China in view of the increasing tension with China.
In the latest development, Japan has also been asked to help about $ 2 billion for those companies, which will set up their business in other markets as well. Most of the help is for companies that will bring their business back to Japan from China. At the same time, companies that go to India or Bangladesh will also be provided subsidy from Japan.