Japan subsidy boost for companies exiting China to pick India
Modi and outgoing Japanese PM Shinzo Abe are slated to hold their last virtual summit on September 1..
Modi and outgoing Japanese PM Shinzo Abe are slated to hold their last virtual summit on September 10
NEW DELHI: A week before an India-Japan summit, Japans ministry of economy, trade and industry (METI) announced it would add India and Bangladesh to a list of Asean countries to qualify for subsidies for Japanese manufacturers moving out of China. The METI announcement comes days after India, Japan and Australia decided to advance cooperation on building trusted, resilient supply chains.
PM Narendra Modi and Shinzo Abe, the outgoing Japanese prime minister, will hold their last virtual summit on September 10. The two countries are expected to sign the ACSA (Acquisition and Cross Servicing Agreement) which will allow military services of both countries to share logistics. (India signed a similar pact with Australia in June). It will be a fitting note to Modi's last meeting with Abe before the Japanese leader steps down given their rapport and the big steps in bilateral cooperation taken during their tenures.
The summit also comes at a time when both India and Japan are locked in separate tensions with China. In fact, foreign minister S Jaishankar will be in Moscow on that day, for an SCO foreign ministers meeting where he is expected to also meet his Chinese counterpart Wang Yi.
The SCRI (Supply Chains Resilience Initiative) is intended to build alternative supply chains. At a trilateral meeting with trade ministers of Australia and Japan on Wednesday, commerce minister Piyush Goyal said, “Diversification of supply chain is critical for managing the risks associated with supply of inputs, including disciplining prRead More – Source