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Japan to invest in ‘Program for the Supply Chain Resilience in the Indo-Pacific Region’ to take over China

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In order to take over China’s dominance in the Indo-Pacific area, the Japan government has selected 8 projects in India and Australia under the ‘Program for the Supply Chain Resilience in the Indo-Pacific Region’. Out of the 8 projects that include IT and Data, Medical and Cold Chain Marketplace among others, 6 projects are from India and 2 are from Australia. The projects will be implemented by March 2023.

These projects will initially conduct a demonstration program to help Japanese companies visualise their supply chains, upgrade logistics, facilitate trade procedures and diversify their production bases.”

Japan Embassy

Almost a year ago, India sealed a trilateral with Japan and Australia in order to stabilize the supply chain power dynamics and induce more resilience in the Indo-Pacific region. The move was a result of Beijing’s aggressive political and military behaviour. It also aims to provide opportunities to stakeholders towards capacity building and promotion of domestic manufacturing.

Prime Minister Narendra Modi and Japanese Prime Minister Fumio Kishida after signing agreements, in New Delhi on March 19, 2022.
Japanese Prime Minister Fumio Kishida with Indian Prime Minster Narendra Modi after signing the MoU in March 2022

Japan has set a target of a total investment of USD 42 billion over the next 5 years in India, out of which, around USD 8.6 million will be used towards these 6 Indian projects. The companies that will implement these projects in India are ACSL Corporation, Sagri Co. Ltd, Fujifilm Corporation, Showa Denko Materials Co. Ltd, Instalimb Inc., and Denso Corporation.

  • One of these projects, implemented by the ASCL Corporation, aims to establish a master database of manufacturing components, which will enable access to information across manufacturing processes to digitise the drone manufacturing process.
  • Showa will promote the creation and operation of an end-to-end database for semi-conductor related products from suppliers to customers, identify key risks in real-time, improve the speed of business decisions, including risk responses, and build a database that includes customers and suppliers.
  • Denso will conduct a feasibility study of the cold chain marketplace, which will lead to the matching of shippers and logistics providers as part of the approved projects.

According to the statement issued by the Japan Embassy, there are diverse risks associated with supply chain disruptions that companies are facing these days. In order to respond to such risks, supply-chain visualisation, data linkage and supply chain diversification using digital technology becomes paramount for companies to improve their business environment.

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