New Delhi: India, Japan and Australia have initiated rapid moves to challenge Chinese domination in the trade sector. Indications have been given to create an independent framework as a part of the efforts to create a reliable product linked supply chain and the removal of obstacles in trade and investment. This framework will be created under Supply Chain Resilience Initiative, and the sources have informed that preparations to finalise the Track 1.5 Dialogue also have been started. Against this very background, Japan has indicated to provide financial assistance to two companies to move their manufacturing facilities to India from China.
A few months ago, a meeting of the Commerce Ministers of India, Japan and Australia was held. During this meeting, Japan had proposed to build a supply chain in the Indo-Pacific region. All the three countries had consented to the proposal. Indications had also been given of creating an independent framework based on the already existent ASEAN-Japan Economic Resilience Action Plan and India-Japan Industrial Competitiveness Partnership Plan. This decision was taken to isolate China on the international level and to reduce dependence on Chinese products.
All three countries have set the goal to carry out trade and investment in an open and transparent environment. While creating the supply chain, stress will be given through an independent framework on the building of industrial parks and systems to remove obstacles in trade and investment, digitalisation of trade-related documents and increasing marine and air channels for trade. The framework includes Track 1.5 Dialogue and under this inclusion of industry sector and educational institution is also being considered.
Meanwhile, Japan has indicated providing financial assistance to the two companies, Toyota-Tsusho and Sumida, to shift their manufacturing facilities from China to India. A few months ago, Japan had announced a scheme to provide financial assistance to companies willing to exit from China. On Thursday, a meeting was held between Prime Minister Narendra Modi and international investors. Following the meeting, independent discussions with Japanese investors also were held. After that, the Japanese sources indicated assistance to two companies. It is being said that out of the two, Toyota-Tsusho will start a manufacturing facility related to rare-earth minerals.