Opportunities / Government of India is trying to bring more than 1,000 American companies doing business in China

 Opportunities / Government of India is trying to bring more than 1,000 American companies doing business in China

·      In April, the government invited more than 1,000 American companies to come out of China and come to India.

·      Focus on medical equipment suppliers, food processing units, textiles, leather and auto parts manufacturers

new Delhi. While the US is accusing China of spreading coronavirus worldwide, India has started trying to convince American companies to come out of China and come to India. Indian officials said the government contacted more than 1,000 US manufacturing companies in April and offered them to shift business activities from China to India. These companies make more than 550 products. The government's main focus is on attracting medical equipment suppliers, food processing units, textiles, leather and auto parts manufacturers.







Companies also want to expand business activities outside China

The Trump administration alleges that China did not deal with this vicar properly. The US accusation is expected to have a worse impact on global trade. Meanwhile companies and governments have started expanding their resources to other countries outside China to expand the supply chain. Japan has earmarked $ 2.2 billion to help companies exit China. Members of the European Union are also working on plans to reduce their dependence on China's suppliers.







Employment will increase if companies come to India

If the government is able to bring these companies to India, it will help accelerate the economy affected by the lockdown. Along with this, it will also help to increase the manufacturing sector's contribution to GDP from the present 15 per cent to 25 per cent. More than 120 million people in the country have become unemployed due to the epidemic. Therefore, increasing employment has also become a very important task for the government today.








India will have to compete fiercely with South and South East Asian countries

University of Chicago Associate Professor Paul Staniland said that India has got an opportunity to make a good place in the global supply chain. But for this India will have to invest a lot on infrastructure and governance. Paul writes regularly on India's political and foreign policy issues. India will have to compete fiercely with countries in South and South East Asia. Officials have told companies that doing business in India is slightly more expensive than China, but acquiring land and skilled labor here is less expensive than in the US or Japan.







Companies making healthcare products and devices are more likely to visit India

The government hopes that it will be able to attract companies making healthcare products and devices. The government is in talks with Medtronics PLC and Abbott Laboratories, an official said. Both companies are already doing business in India. This will enable them to bring their business activities to India. However, since the start of the US trade war with China, many American companies have migrated from China to Vietnam.







US is talking to many countries including India for supply chain expansion

US Foreign Minister Michael Ponpies said last month that the US is talking to India, Australia, Japan, New Zealand, South Korea and Vietnam to ensure that the supply chain is not disrupted again in the future. Another report states that the US is working on building an economically prosperous network with trusted partner countries. Derek Grossman, a researcher at RAND Corporation in Washington, said that if such a network is formed, it is more likely to happen to India and Vietnam. Grossman has been associated with the US intelligence service for over a decade.







Companies are afraid of tax applicable from previous date

Federation of Indian Exporters (FIEO) Director General and Chief Executive Officer Ajay Sahai said that India is a bigger market than Vietnam or Cambodia. Due to this, India may be more attracted to companies exiting China. But India has to assure that it will not make any changes in the tax system with effect from the previous date. Mukesh Aghi, president of the US-India Strategic and Partnership Forum, said that the US has a lot of capital that wants to go to other countries. India is also trying to attract it. US companies also feel that China's huge supply chains are beneficial to companies, but it is not fair to lay all their eggs in the same basket.