India targeting foreign firms to shift their operations to India

India targeting foreign firms to shift their operations to India

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In the midst when trade tension between the United States and China is at its peak and big tech companies are thinking about or have already been shifting their business operations out of China, India has just jumped in to target such big tech companies including Apple, Wistron and Foxconn with incentives aiming to encourage them shifting out their business from China to India, reported Reuters citing a source as well as a document seen by it.

Citing a source with direct knowledge of the matter, Reuters reported that a list of companies to be targeted which also include Taiwan-based contract manufacturer Pegatron Corp remained under discussion of several officials in India at a meeting held on August 14.

The trade war between the world’s two largest economies of the United States and China has not only left the big tech companies to pay higher tariffs that reach billions of dollars in worth but has also largely disturbed the global supply chains, which left no other way for those companies but try to find other investment opportunities to avoid higher tariffs.

Despite some criticism as well as implication that India has already missed the bus by not capitalizing the opportunities arising out of the Sino-US trade war at earlier stages, government ministries have been asked to come up with their policies and incentive ideas to strengthen Invest India, an agency responsible for foreign investment promotion activities. Autos, telecoms, electronics and pharmaceuticals are included in the nine sectors in target list of the India.

Indian government is in plans of meeting those companies between August 26 and September 5 with the suggestions of best suitable zones for their respective operations in India as well as complete package of incentives will be offered to them with details of market factors, and state governments will also be participating in the process.

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