Japanese Firms Eye India as Part of 'China Plus One' Strategy

Post the Covid-19 pandemic, Japanese companies are eyeing India as a base as they adopt the 'China Plus One' strategy to diversify their manufacturing and supply chains to reduce dependence on China, experts from Deloitte said.

- Press Trust of India

NEW DELHI:

The strategy involves establishing production facilities in alternative countries, with India emerging as a significant beneficiary. "Post-covid, Japanese companies have been actively exploring China-plus supply chain strategies, with India emerging as a key destination. While some companies returned to Japan, others are looking at India not just as a manufacturing hub, but as a gateway to high-growth markets like the Middle East and Africa," Deloitte Japan CEO Kenichi Kimura said.

While the sheer scale of India's domestic market is a major draw, what makes India even more compelling is its well-established business and talent networks across these regions.