1,000 Foreign Firms Mull Production In India, 300 Actively Pursue Plan As ‘Exit China’ Mantra Grows

These companies see India as an alternate manufacturing hub and have taken up their proposals across various levels of the government, including central government departments, Indian missions abroad and state industry departments

KEY HIGHLIGHTS

  • 1,000 foreign firms are planning to shift manufacturing to India; in talks with authorities
  • 300 actively pursuing production plans in mobiles, electronics, medical devices, textiles
  • Proposals are at various levels — central government departments, Indian missions abroad, state industry departments
  • Government is making all-out attempt to hard-sell India as a manufacturing hub
  • Cost difference between India and SouthEast Asia is 10-12 per cent

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Amid chances of China possibly losing its tag of preferred manufacturing hub following coronavirus, around 1,000 foreign companies are engaged in discussions at various levels with the Indian authorities. At least 300 of these companies are actively pursuing production plans in sectors such as mobiles, electronics, medical devices, textiles and synthetic fabric, according to top government sources.

These companies see India as an alternate manufacturing hub and have taken up their proposals across various levels of the government, including central government departments, Indian missions abroad and state industry departments. “About 1,000-odd companies are currently engaged in discussion at various levels such as investment promotion cell, central government departments and state governments. Out of these companies, we are targeting 300-odd companies,” the official said.

Source: Business Today

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