Since the inception of coronavirus pandemic, China is struggling to woo the world that it reported about the pandemic to the WHO at the right time. Another setback is set to arrive in China due to the pandemic as many firms are giving a thought to leave China. It is the optimum opportunity for the world to woo those firms as it will strengthen any country's economy.
India and China which are not so friendly nations have locked horns on this. As per reports, India is developing a land pool nearly double the size of Luxembourg to lure businesses moving out of China. A total area of 461,589 hectares has been identified across the country for the purpose. That includes 115,131 hectares of existing industrial land in states such as Gujarat, Maharashtra, Tamil Nadu and Andhra Pradesh. As per World Bank, Luxembourg is spread across 243,000 hectares.
Availability of land has been a major problem for those investing in India in the shortest possible time. Companies ranging from Saudi Aramco to Posco are deeply troubled by land acquisition delays.
As per Bloomberg report, Modi's government is working with state governments for this. In fact, after the Coronavirus epidemic, foreign companies operating in China are now considering quitting Beijing and India is looking to take advantage of it. Currently, companies setting up factories in India have to buy land themselves. In some cases, the project also gets delayed due to delay in land acquisition.
Facilities Under Consideration:
To attract investment, providing access to land, electricity, water and roads will help in attracting new investment to an economy like India. The lockdown caused by the Coronavirus epidemic has worsened the economy.
Sectors India Trying To Attract:
As per sources, several meetings have been held with various concerned parties including industry boards to identify the areas which have the potential to become global leaders and make the country a stronghold of manufacturing. As per a source, 'There are 12 leading areas that can be taken care of. These include modular furniture, toys, food processing (eg ready-to-eat food), agrochemicals, textiles (eg man-made cotton), air conditioners, capital goods, medicine and auto components. Employment opportunities will also increase.
He had also pointed out that the Ministry is working on identifying areas which could be promoted in the near future for the purpose of export. Promoting manufacturing can help accelerate India's slowing exports and create more employment opportunities. It is noteworthy that the manufacturing sector accounts for about 15 per cent of India's gross domestic product (GDP). The Government of India is focusing on increasing the manufacturing sector's share of GDP.