Indian government lure to take advantage foreign company.
According to Indian officials who asked not to be identified, citing rules on speaking with the media. 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.
Trump’s move to blame China for its handling of the Covid-19 outbreak, which has killed more than a quarter-million people worldwide, is expected to worsen global trade ties as companies and governments move resources out of the world’s second-largest economy to diversify supply chains.
Manufacturing companies in India may need to fulfil 1,984 compliances under various central and state laws, which are time-consuming and increase the cost of doing business,industry lobby group Ficci has told top government functionaries ahead of the Union Budget.
Japan has requested that its companies in India be allowed to resume work.
The request was conveyed by Japanese foreign minister Motegi Toshimitsu during a telephonic conversation with his Indian counterpart S Jaishankar, on Thursday, according to a statement from the Japanese foreign ministry.
India has been in lockdown since 25 March to control the spread of covid-19 in the country. Currently, the country is in the third phase of the lockdown with some economic activities allowed in pockets without covid-19 cases as well as other areas where the spread is not as extensive as in places with high incidence.
In FY20 (April – November), Japanese FDI into India touched $3.99 billion, while number of Japanese companies registered in the country was at 1,441 in October 2018, according to the latest joint survey by the Embassy of Japan in India and the Japan External Trade Organization (JETRO). The number of Indian companies in Japan is more than 100, the note said.
India is considering a number of steps to attract the foreign companies moving out of China. These include a reduction in corporate taxation to the lowest level in the region and assistance to the moving companies through the provision of land, utilities and essential infrastructure. There are, however, several weaknesses which India will have to address, such as low productivity of our industries due to outdated technologies, lack of an ecosystem of efficient suppliers who could manufacture quality goods at the required speed in large volumes and logistical and infrastructural constraints, besides membership of important trade groupings to emerge as a serious destination for supply chains relocating from China.