The India government is working on several initiatives to draw potential investors to India amid the turmoil. As the COVID-19, a senior official said it was such as preparation of big land pools.
The disruptions in the global supply chain will reduce the foreign firms’ dependence in China. Due to the COVID-19, many foreign firms will change their strategy. And then, it sets up manufacturing facilities elsewhere.
“We ‘re working on a lot of projects. States are planning their inventory of land when it comes to land. In addition, we’re aggregating those and making them available to all potential investors,” said the government official.
According to Federation of Indian Export Organizations (FIEO) President Sharad Saraf, measures such as making state and central government officials accountable to perform in a time-limited manner; considered approval of all licenses and permits if not issued well in time; change in land acquisition law; power link in one month and the approval of bank loans in two months’ time will help draw international companies.
Sharing similar views, Vikarmjit Singh Sahney, President of the Paris-India Chamber of Commerce, said that with stagnant economic activity, production coming to a halt and cash flows drying up elsewhere, India should present itself as the most viable destination for global companies looking for other investment destinations. Therefore, India government is working hard to attract investors.
“Despite a reduction in corporate tax rates, particularly for new manufacturing units, a large part of the shift from China goes to Vietnam, Indonesia and Malaysia.
“In addition to being easy to do business, central and state governments would need to establish industrial parks and corridors along China’s lines and ensure a stable policy environment for foreign investors, which is of concern to most of them,” Sahney said.
