India develops a land pool to lure investors
At a time when global investors have decided to move supply chain outside China, India is developing a land pool nearly double the size of Luxembourg to lure businesses. Supply chain disruptions in the aftermath of the coronavirus outbreak has forced investors to reduce reliance on China as a manufacturing base.
In a bid to make India a global production hub, the government has hand-picked 10 sectors as focus areas for promoting manufacturing. These include electrical, pharmaceuticals, medical devices, electronics, heavy engineering, solar equipment, food processing, chemicals and textiles.
According to sources familiar with this development, a total area of 461,589 hectares in states such as Gujarat, Maharashtra, Tamil Nadu and Andhra Pradesh, has been identified across the country for the purpose. Industrial land in Luxembourg is spread across 243,000 hectares, according to the World Bank records. In the past, delay in land acquisition has been one of the most significant impediments for companies like Saudi Aramco and Posco, looking to invest in India.