Corona Effect / 1 thousand foreign companies planning to leave China and coming to India, talks with the government

·      300 companies have been completely in the mood to set up factories in India.

·      Companies are increasingly considering getting their supplies from China to India.

·      Foreign companies in China are facing a lot of problems due to the Corona virus.

new Delhi. Coronavirus has adversely affected China's reputation. As a result, global manufacturers have started negotiations with Indian companies to complete a portion of their supply chains from China to India. Companies are increasingly considering supplying their supplies from China to India. Companies are doing this to reduce their dependence on a country in the future when they face problems like Corona. According to the information, about 1000 foreign companies are thinking of entering India. Of these, coronavirus has adversely affected China's reputation. As a result, global manufacturers have started negotiations with Indian companies to complete a portion of their supply chains from China to India. Companies are increasingly considering supplying their supplies from China to India. Companies are doing this to reduce their dependence on a country in the future when they face problems like Corona. According to the information, about 1000 foreign companies are thinking of entering India. Of these, around 300 companies are in a mood to set up factories in India.

China has several automotive factories in Wuhan and is one of the so-called "motor cities" of China. In such a situation, supply chain was disrupted due to high outbreak of corona here. In view of this, foreign companies interested in sourcing automobile and electronic products are taking interest in India.

Pankaj Munjal, chairman and managing director of Hero Motors Company, said that companies making auto parts are contacting Indian companies, these companies are currently operating from China. According to Munjal, most of the supply is currently from China, but many companies will now move to India, Vietnam and other countries. So, I am confident, this will be an opportunity for growth for India.





Japan wants to remove its companies from China

Munjal believes that to ensure that foreign companies invest in India, the government will still have to announce new measures to lure companies planning to operate from China. Earlier this month, Japan invested $ 2.2 billion to help its companies produce outside China after the coronavirus epidemic. This is a great opportunity for India to connect Japanese companies with itself.





Many medical companies including Johnson & Johnson showed interest in India

Among global firms that have shown interest in India are manufacturers of medical electronics products in the US, Teledyne and Amphenol, and medical equipment manufacturers such as Johnson & Johnson. Vinod Sharma, managing director of Deki Electronics and chairman of the national panel of electronics at the Confederation of Indian Industry, said his company was in talks with a South Korean firm to manufacture electronic parts. Most auto firms import parts such as fuel-injection systems for the latest engines and other electronic parts from China. "In the next few months, we will see that most of these Indian automobile manufacturers will be able to manufacture such parts and import them.

1 thousand companies are thinking of coming to India


Foreign companies in China are facing a lot of problems due to the Corona virus. In this environment, about 1000 foreign companies are thinking of entering India. Of these, around 300 companies are in a mood to set up factories in India. Negotiations are also going on with government officials in this regard. These companies are in the fields of mobile, electronics, medical devices, textiles and synthetic fabrics.





Government wants to bring foreign investment

The central government constantly wants to bring foreign investment. Due to this, corporate tax was reduced to 25.17 per cent last year. At the same time, this tax has been reduced to 17 percent for those who set up new factories. This tax is the lowest in Southeast Asia. Government has given relief in Minimum Alternate Tax (MAT). Companies now have to pay MAT at 15% instead of 18.5%. Actually, MAT is levied on companies that earn profits, but due to concessions, the tax liability on them is reduced.