New Delhi: India has identified a total area of 4,61,589 hectares to lure businesses moving out of China, the area is almost double of that Luxembourg.
This includes 1,15,131 hectares of existing industrial land in states such as Gujarat, Maharashtra, Tamil Nadu and Andhra Pradesh, a report by Bloomberg stated.
The land has been one of the biggest impediments for companies looking to invest in India, with the plans of Saudi Aramco to Posco frustrated by delays in the acquisition process.
Prime Minister Narendra Modi’s administration is working with state governments to change this, as investors seek to reduce reliance on China as a manufacturing base in the aftermath of the coronavirus outbreak and the resultant supply disruption. The PM’s Office, Niti Aayog and the Department for Promotion of Industry and Internal Trade are firming up a plan to offer incentives in order to attract companies looking to shift manufacturing units out of China.
The benefits will be on the lines of those given to manufacture electronic and medical devices. These may include production-linked incentives such as capital expenditure benefits.
There is a growing realisation among multinational companies after the COVID-19 pandemic that capacities cannot be concentrated at one place. India has set up dedicated groups to directly interact with firms that may want to diversify out of China. The government has already reached about 100 multinational companies that have manufacturing units in China and may be keen to move out.