In an effort to gain more firms for India, the Centre is seeking to lure more than 1,000 US businesses, including medical devices giant Abbott Laboratories, to relocate from China even as President Donald Trump’s administration has been accusing Beijing for its role in the coronavirus pandemic, according to a report by Bloomberg.
The report states that the government in April reached out to more than 1,000 companies in US through overseas missions to offer incentives for manufacturers seeking to move out of China, according to officials.
India is prioritizing medical equipment suppliers, food processing units, textiles, leather and auto part makers among more than 550 products covered in the discussions, they said.
Bloomberg had earlier reported that India has identified a total area of 4,61,589 hectares to lure businesses moving out of China, an area almost double than that of Luxembourg.
According to the report, that includes 1,15,131 hectares of existing industrial land in states such as Gujarat, Maharashtra, Tamil Nadu and Andhra Pradesh, they said.
Land has been one of the biggest impediments for companies looking to invest in India, with the plans of Saudi Aramco to Posco frustrated by delays in acquisition. Prime Minister Narendra Modi’s administration is working with state governments to change that as investors seek to reduce reliance on China as a manufacturing base in the aftermath of the coronavirus outbreak and the resultant supply disruption.
The Prime Minister’s Office, Niti Aayog and the Department for Promotion of Industry and Internal Trade are firming up a plan to offer incentives to attract companies looking to shift manufacturing activities out of China.
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