MNCs turning away from China to India
In the wake of trade protectionist measures and rising risks because of coronavirus, a number of Multinational Companies are looking to diversify their supply chains away from China, to India. “Given India’s competitive advantage in terms of land and labour availability, exports has always been a big hope historically but it is now seeing a turn as global manufacturers long settled in China are looking to diversify their manufacturing base. India has scale advantage and key success factors locally are also improving,” UBA stated in a report.
Echoing the sentiment, Hitendra Dave, head global banking and markets at HSBC India said, “If India can make like-for-like replacement possibilities make land and electricity available and all clearances are in place to (help companies) de-risk on a permanent basis (it is an opportunity). The government has helped with this 15% taxation which together with this narrative if we now get to the administrative side to offer a plug and play model with our advantages it is an opportunity for us. But we have to be faster and better than other competing countries.”