India steps up game to lure US firms
Amidst President Donald Trump’s administrations increased efforts to blame Beijing for its role in spreading the coronavirus pandemic, India is seeking to lure more than 1000 U.S. businesses trying to shift out of China by offering incentives. Some of these discussions revolve around medical equipment suppliers, food processing units, textiles, leather and auto part makers, among others.
European Union, too, is planning to cut dependence on Chinese suppliers. India is competing against neighbours like Japan, which has earmarked US $2.2 billion to help shift factories from China. This would be a booster dose for the Indian economy battered by an eight-week nationwide lockdown to control the Covid-19 outbreak.
This could be India’s ticket to finally push through long-stalled reforms on land, labor and taxes that have hindered investment for years. Paul Staniland, an associate professor at the University of Chicago, opines “There are opportunities for India to try to gain a place in global supply chains, but this will require serious investments in infrastructure and governance.”