Prime Minister Narendra Modi held a “comprehensive” meeting to attract foreign investments to boost the economy as the country prepares to gradually return to normalcy after a 40-day nationwide lockdown because of the coronavirus pandemic.
Modi nudged various ministries under his government to accelerate reform initiatives and remove obstacles in a time-bound manner to attract investment and promote industrial growth. Several global firms are looking to shift base from China in the post-Covid era. The companies plan reduce their dependence on any one country.
An official statement said various strategies to bring investments into India on a fast-track mode and to promote the domestic sectors were discussed in the meeting, which was attended by finance minister Nirmala Sitharaman and commerce minister Piyush Goyal among others.
Also discussed was a scheme to promote more “plug and play” infrastructure in the existing industrial lands, plots or estates in the country and provide the necessary financing support.
During the meeting, Modi directed that action should be taken for a more proactive approach to “handhold” the investors, to look into their problems and help them in getting all the necessary central and state clearances in a time-bound manner.
The government is working on a package of tax, duty incentives and single-window clearance to woo investors looking to move out of China. Other proposals include relaxations from a plethora of regulations, especially if the planned factory is in a SEZ, sources said.
CII director-general Chandrajit Banerjee said, “A comprehensive scheme which includes setting up of industrial zones with plug-and-play infrastructure as well as financing support would address many hurdles faced by investors at the grassroots.”
Relocation record poor
New Delhi: India’s ability to attract firms moving out of China has not been that impressive so far. Out of the 56 companies that relocated their production out of China between April 2018 and August 2019, only three came to India and two went to Indonesia, according to a study by Nomura, a Japanese financial group.
Out of the 56 firms, 26 relocated to Vietnam, 11 went to Taiwan and eight to Thailand, it added.
