Great news! 1000 foreign firms plan to shift from China to India

Business Today has reported that, in the wake of COVID-19, as many as 1,000 foreign firms are planning to shift manufacturing to India from China and have been in talks with authorities.  About 300 of them are actively pursuing production plans in mobiles, electronics, medical devices, and textiles.  

This is to be seen as a great piece of news.  While States such as Uttar Pradesh need to be highly proactive to attract the firms, skeptics opine that if even 100 foreign firms shift manufacturing to our country, it should be treated as a blessing.  

What are the challenges?  

Says Chandrashekhar Dhage, a Twitter user, “Infrastructure, complex taxation, red tape approvals, local mafias are a key concern right now.  Without these, it’s not possible to thrive as a manufacturing hub.”  As such, the Centre and the state governments have to work towards removing these blocks.  

Some easy solutions are definitely there.  Tweets out Kishore Vaid, “While this is good news, Indian Central & State Governments will have to go the extra mile to provide near plug and produce offers for the prospective investors. Readily available land in Special Zones with crucial Infrastructure and connectivity by road will do half the job.”  

On the other hand, India recently made it difficult for Chinese FDI to flow into the country.  Journalist Palki Sharma says that China’s infiltration attempts come in many forms- military and economic.  “Recent examples: Doklam standoff, Belt & Road Initiative(BRI), Regional Comprehensive Economic Partnership(RCEP). Each attempt met with a strong pushback.  India’s new FDI rules are a step in the same direction,” she writes.