If the reports are anything to go by, Japan is set to offer incentives for Japanese companies shifting its base from China to India. According to Nikkei, the Japanese government under the leadership of Prime Minister Shinzō Abe has allocated around 23.5 billion YEN in the country's supplemental budget of this year to offer subsidy and promote companies to move their manufacturing assets and bases across ASEAN region.

The report also says that Japan is looking forward to decentralize its industrial realm to reduce the dependency on a single country and build a new model that can ensure a stable delivery of supply of medical materials and electronic components in a seamless manner. Their current delivery system, which is heavily dependent on China was almost cut off during the Pandemic. However, this could create a huge progressive impact in India’s economic landscape. In truth, India over the last few years has been preparing exactly for the same kind of scenario.

The union government and state ministries have been endeavoring to offer an attractive proposition to companies across the world to lure them to the subcontinent. Recently, the Uttar Pradesh Chief Minister Yogi Adityanath engaged in a video conference with a number of American companies, as the UP Government is working on a package enough to attract them.

Tamil Nadu Chief Minister Edappadi K Palaniswami has also created a special investment promotion task force headed by the Chief Secretary in order to lure multinationals looking to move out of China.

Previously, there were reports implicating that Indian government had outreached more than 1,000 companies in the US to offer incentives for manufacturers seeking to move out of China amidst the pandemic.