India Plans To Lure Around 1000 Companies Out Of ChinaTop Stories

May 07, 2020 19:17
India Plans To Lure Around 1000 Companies Out Of China

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India is planning to relocate more than 1000 U.S businesses that are located in China. As America President Donald Trump is blaming China for the Coronavirus outbreak, India decided to make this big move.

The Government of India reached out to over 1000 companies in the U.S. The approach is through overseas missions to offer incentives to the manufacturers who are willing to migrate from China.

In the category of those migrating companies, the medical devices are included as well. India’s priority goes to medical equipment suppliers, food processing units, textiles and leather products. More than 550 products are covered in the discussions according to the Indian officials.

The superior companies like Medtronic Plc and Abbott Laboratories are in talks to relocate their supply from China to India. The two companies spokespersons did not respond at the moment. According to an official, it is said that they are already working with large hospital groups.

It is believed that India is more economical and affordable labour unlike the U.S and Japan. That is the reason behind moving the businesses and supplies to India.

The nation wide lockdown lowered the Indian economy which is shore up with the international supply. The future economy may face the crisis due to the lockdown. So, there is an emergency need to increase employment which is only possible with this U.S companies shift to India.

PM Modi’s investment in the U.S companies can hike up the manufacturing sector to 25% of gross domestic product by 2022. Currently the gross domestic product is at the rate 15% and that is a major progress.

While many countries choose countries like Vietnam over India for alternate supply of services, the U.S chooses India. In fact, India’s economy is higher compared to Vietnam. While European countries are trying to cut off the dependence on Chinese suppliers.

Paul Staniland, an associate professor at the University of Chicago said- “there are opportunities for India to try to gain a place in global supply chains, but this will require serious investments in infrastructure and governance”

Secretary of state Michael Pompeo said that the U.S is actively working with multiple countries- India, Japan, Australia, New Zealand, South Korea and Vietnam. The discussions went on how to initiate removing the supplies from China joining hands with trusted partners. There is note about this discussion and plans of moving U.S companies from China- India’s Trade Ministry Spokesperson did not respond to an email seeking opinion on the plan.

By Ramya C

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