Due to disruptions in the global supply chain on account of the COVID-19 crisis, many foreign companies are looking to reduce their dependency on China and set up manufacturing facilities in other countries.
“We are working on a lot of initiatives. When it comes to land, states prepare their land inventory and we aggregate those and make available to all potential investors,” the government official said.
According to Federation of Indian Export Organisations (FIEO) President Sharad Saraf, steps like fixing accountability on state and central government officers to perform in a time-bound manner; deemed approval for all licences and permits if not granted well in time; change in land acquisition law; power connection in one month and bank loan sanction within two months can help in attracting overseas firms.
Sharing similar views, President of International Chamber of Commerce Paris-India Vikarmjit Singh Sahney said with stagnant economic activity, production coming to halt and cash flows drying up elsewhere, India should present itself as the most viable destination for global companies looking at other investment destinations.
“Despite reduction of corporate tax rates especially for new manufacturing units, bulk of shifting from China is going to Vietnam, Indonesia and Malaysia.
“Apart from ease of doing business, central and state governments will have to develop industrial parks and corridors on lines of China and ensure consistent policy framework for foreign investors, which is a matter of concern for most of them,” Sahney said.