On the heels of extending a subsidy package to 10 Japanese firms to invest in IT tie-ups in India, Tokyo has made India and Bangladesh part of a larger subsidy programme, estimated at $230 million, unofficially aimed at helping Japanese companies in China to relocate to other countries.
“When the package was initially announced, it was for relocation of Japanese companies to mostly South-East Asian countries including Vietnam, Thailand and Myanmar, but now India and Bangladesh, too, have been added to the list,” an official close to the development told BusinessLine.
The larger part of the package, totalling about $2 billion, is, however, for helping Japanese companies relocate from China to Japan. The total package, amounting $2.23 billion, was announced by the Japanese government earlier this year to help its companies in China that wanted to move out.
There are over 31,000 Japanese business establishments in China compared with