Corona virus : 1000 companies to move from China to India?

Corona virus: 1000 companies to move from China to India?

Hello Folks, today we will be discussing about the companies which may shift in India from China. As every country is in lock down and every country suspects China for this Corona Virus. So, all countries have started to move their production unit from China. Now every country is planning to move ahead out of China. No country wants to make any connection with China which is the largest manufacturer country in our world. As per the new research we have made some important facts about Companies which are going to move or not? Let’s check out and find the answer.

 Can China's loss be India's gain over the corona virus outbreak? It is a global crisis; it is a major health challenge for India too but it is also an opportunity. It's a chance for India to win businesses away from China and bring them here and guess what it's already happening.

Foreign businesses based in China want to move out and they're looking at India as their new home not one or two but as many as 1,000 companies have reached out to India. They're engaged in discussions with Indian officials at various levels. At least 300 companies are actively pursuing production plans they belong to industries and sectors like mobiles, electronics, medical, devices, textiles and synthetic fabric.

 Korean companies are making the first move. Reports says the Korean consulate in Chennai has received a number of requests - requests are from iron and steel companies another one from the hospitality sector. Some startups have also shown interest in moving from China to India.

India is being seen as a solid alternative, a global manufacturing destination going forward the corona virus outbreak has exposed how lopsided the global supply chains are companies want to reduce their dependence on China now and India is emerging as a viable option. So which companies could come to India? There are reports that give some clear indications apples manufacturing partner with strong cooperation is reportedly interested in shifting to India Pegatron.

The company that assembles the iPhone is also considering India POSCO and Hyundai steel are some South Korean names doing the rounds. The Indian government is keen on capitalizing the shift. Delhi is expected to make moves to attract more foreign companies. Reports says the government is planning an aggressive make in India push after the lockdown is lifted.

Indian Minister Nitin Gadkari has already given a signal, he has urged industry bodies to attract top companies from the US and the UK backing the idea of more joint ventures and assuring the government support. This minister said that permissions will be given on a quote unquote or footing so what works in India's and what works in India's favor is the question?

 This has been in the making well before the pandemic, we can tell you India became an attractive option after the cut in corporate taxes. This happened last year the corporate tax was reduced to 25% for new manufacturing firms it is as low as 15 percent 1/5 this is an attractive proposition but this is not enough investors have hesitated to move to India and the past they blame the changing policies they blame the red tape in India and India will have to overcome these challenges if it wants to attract businesses away from China.

There is competition to Vietnam, Malaysia, Philippines and Indonesia there’s. These are some of the other alternatives that companies are considering. India may need to do more to attract big investment and India is reportedly willing to offer incentives to foreign businesses. The Prime Minister's Office Nithya yoga and other government agencies are working on a plan and here is what it could look like the government of India plans to set up dedicated groups.

They will directly engage with the firms that might want to diversify out of China. In fact, New Delhi is said to have already reached out to 100 companies’ incentives like capital expenditure benefits could be offered to companies looking to shift but it's going to take some time for these companies to make up their minds.

The corona virus outbreak in the lockdowns have killed demand the world over major businesses especially businesses to consumer companies are practically shut at the moment. India's fortunes are also tied with a global economic revival if Delhi makes the right moves at the right pace it could well emerge the winner.

So, it is very important for India to attract the foreign Companies and to bring them back in India. As expected, over 1000 companies are trying to shift from China to India. India could be the main place for these companies if Government could attract these companies and gives them more and more incentives and reduces the Tax.

Think if out of 1000, If 500 companies also shift to India then our unemployment problem will be solved. More and more people will be getting job and most importantly youth of our country will be getting jobs from those companies. There will be more and more manufacturing companies will be established and more and more people will be getting job for daily workers.

Isn’t it that good if everything goes and well? We can imagine a new India after lockdown but there is rival country also who all are waiting for these companies too, India will have to take extra effort to bring back those companies and get it settled in India. This is a great time for India to take some great initiative and think about our Country. Both GDP and employment will increase one after another.

There are various drawbacks of Lockdown but there are various advantages of lockdown also. Our environment is becoming fresh day by days as there is no pollution now a days as every one stays at home. Our Earth is healing everyday and this is good news for everyone.

Hope you have enjoyed our article. Let’s be happy. Stay safe and stay homes 😊