Japan and India are working together to shift the production of important technologies, such as computer chips, LCD screens, batteries, and solar equipment, to India.
The goal is to reduce dependency on China and, at the same time, build stronger economic relations between the two nations..
According to a plan prepared by Japan’s trade body JETRO and India’s CII, production of goods that Japan is struggling to make competitively due to cheap Chinese alternatives will now shift to India. These include semiconductors used in electric vehicles, air conditioners, refrigerators, and other essential products.
The plan will be officially announced ahead of Prime Minister Narendra Modi’s visit to Japan, where he will meet Japanese Prime Minister Shigeru Ishiba.
The partnership is not just about moving factories. India will also adopt laws similar to Japan’s to protect technology and prevent leakage of intellectual property.
This comes at a time when India still depends heavily on China for semiconductor imports, even as Modi pushes for more domestic manufacturing. For Japan, it’s a way to stay competitive in older technology markets while using India’s skilled but cost-effective workforce.
Some companies have already begun acting on the plan. A Japanese battery maker is preparing to partner with an Indian firm, and another Japanese company has started building a compressor plant in Tamil Nadu.
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