Japan India Trade / Holiday from China and love for India... Japan's amazing policy will make the market boom

Japanese companies are making India a new manufacturing base under the 'China Plus One' policy. After Covid-19, India has become an attractive destination for supply chain diversification. The Japanese government is also supporting this change, making India a major hub for investment and business expansion.

Japan India Trade: Japanese companies are looking at India as one of their major production centers after the COVID-19 pandemic. The main reason for this is the strategy to reduce dependence on China and diversify its manufacturing and supply chain, which is called the 'China Plus One' policy. According to experts from financial consultancy firm Deloitte, under this policy, Japanese companies are setting up production facilities in alternative countries, with India emerging as an important beneficiary.

Kenichi Kimura, Chief Executive Officer (CEO) of Deloitte Japan, said that Japanese companies are actively exploring 'China-plus' supply chain strategies after COVID-19, with India emerging as a major destination. Investing in India can provide companies with many advantages, such as a wide domestic market, competitive labor costs and access to high-growth markets such as West Asia and Africa.

Key advantages of India:

Huge domestic market: India's huge population and growing purchasing power assures companies of stable demand.
Competitive labour costs: Comparatively low labour costs help companies keep production costs under control.
Strategic geographical location: India's location makes it a trading hub for West Asia, Africa and other emerging markets.
Strong business and talent network: The already established business ecosystem and talent network in India helps companies expand operations easily.

The Japanese government is also playing an important role in this shift. The government has provided substantial financial support to companies to shift production domestically or to Southeast Asia. Japanese companies are building strategic partnerships to take advantage of India's large market and labour resources. According to Romal Shetty, CEO of Deloitte South Asia, the 'China Plus One' strategy has prompted Japanese companies to invest in India, making their supply chains more diverse and robust.

Under this strategy, trade and investment relations between Japan and India are likely to strengthen further. The increasing investment of Japanese companies in India will not only accelerate India's industrial development, but will also boost economic cooperation between the two countries.