The government is adjusting its plans to formulate a policy to strengthen the domestic defense industry by the end of fiscal 2026, according to government sources.
In its first “defense industry strategy,” the Takaichi administration is focusing on policies positioning the defense industry as a driving force of economic growth.
By developing this strategy to showcase a mid- to long-term direction domestically and internationally, the government is seeking to lead corporate initiatives and boost the domestic defense industrial base.
The government is advancing discussions on this strategy alongside revisions to the three security-related documents scheduled for completion within this year.
The new defense industry strategy is expected to be compiled with a view toward future restructuring of the defense sectors of domestic companies.
The new strategy will likely include a policy to nationalize production facilities for items such as ordnance and then outsource operations to private companies, thereby securing a manufacturing system for equipment in preparation for emergencies.
The Takaichi administration established the Council for Japan’s Growth Strategy in November, comprising Cabinet ministers and experts to address economic challenges and formulate growth strategies.
Strengthening the defense industry is expected to be included in the growth strategy to be finalized this summer. Based on this, the government plans to formulate its defense industry strategy.