Can China’s loss be India’s gain?
More than 1000 Multi National Companies reach out to India
The coronavirus outbreak is a global crisis and it is a major health challenge for India too but it is also an opportunity. it’s a chance for India to take businesses away from China and bring them here and guess what; it is already happening. Foreign businesses based in China want to move out and looking at India as their new home, not one or two but as many as 1000 companies have reached out to India. They are engaged in discussions with Indian officials at various levels. At least 300 companies are actively pursuing plans, they belong to industries in the sector like mobile electronics medical devices textiles in synthetic fabric
Korean companies are making the first move, the report said the Korean consulate in Chennai has received a number of requests, two requests are from iron and steel companies another one from the hospitality sector some startup has also shown interest on moving from China to India
India is being seen as a solid alternative of global manufacturing destination going forward .The coronavirus outbreak as exposed the global supply chain. Companies want to reduce the dependence on China now and India is emerging as a viable option. So which company could come to India .The reports that gives clear indications, apple’s manufacturing partner, Wistron corporations reportedly interested in shifting to India. Pegatron, the company that assemble the iPhone is also considering India .Posco and Hyundai Steel are some South Korean name two in the rounds the Indian government schemes on capitalizing the shift.
Delhi is expected to make moves to attract more foreign companies .Reports say the government is planning aggressive make in India post after the lock down is lifted.Indian minister Nitin Gadkari has already given signal he has urged industry bodies to attract top companies in the US & UK backing the idea of more joint ventures and showing Government support.
India became an attractive option after the cut in corporate taxes and last year corporate tax is reduced to 25%. For new manufacturing firms, it is as lowest as 15%.This is an attractive proposition but this is not enough. investor hesitate to move to India in the past, they blame the changing policies .They blame the Red tape in India and India will have to overcome the challenges if it wants to attract businesses away from China
There is competition too, Vietnam, Malaysia, Philippines, and Indonesia, there are some of the other alternatives that companies are considering. India may need to do more to attract big investment in India reportedly willing to offer an incentive to foreign business
The prime minister’s office Niti aayog another government agencies working on plans .The government of India plans to set up dedicated groups they will directly engage with the firms that might want to diversify out of China.In fact, New Delhi is said to have already reached out to 100 companies incentives like capital expenditure benefits could be offered to companies. Companies are which looking to shift India are going to take some time to make up the mind
The coronavirus outbreak in the lockdown has killed the demand all over the world. Major business, especially businesses to consumer companies are practically shut.
Now India’s Fortune also tied up with the global economic revival. If Delhi Makes the Right move at the right pace, it could well emerge “the winner”
About Author – This article is originally published in TANx by Tanay Singh
(Author, Entrepreneur, Researcher, Motivational Speaker, Life coach, Business Consultant & Digital Marketer)