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Economy

Japan adds India and Bangladesh to 'China exit' subsidy destinations

Industry ministry launches second round of program to diversify supply chains

Workers assemble air conditioners for Japan's Daikin Industries at a plant in Neemrana, India.   © Reuters

TOKYO -- Japanese manufacturers will now be eligible for subsidies if they shift production out of China to India or Bangladesh, in an expansion of a government program aimed at diversifying the country's supply chains.

The government's supplementary budget for fiscal 2020 earmarked 23.5 billion yen ($221 million) for companies that move production to Southeast Asian nations. When the Ministry of Economy, Trade and Industry opened up a second round of applications on Thursday, it added "projects that contribute to the resilience of the Japan-ASEAN supply chain" to the list of qualifying moves, eyeing relocations to countries such as India and Bangladesh.

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