China, the origin of the deadly Coronavirus disease, will be facing the music very soon, as there are talks about foreign firms moving their manufacturing plants to India.
As much as 1000 foreign firms are discussing with Indian officials about shifting their manufacturing plants to India.
We should note that this is not the first time companies have taken their business elsewhere, displeased due to the situation in China. Previously, there was news about South Korean firms being in talks with shifting their manufacturing units from China to India. Also, iPhone makers have been planning to shift their plants to India from China, all due to the Coronavirus outbreak.
1000 Foreign Firms To Shift Their Manufacturing Plants From China To India
1000 foreign firms are planning to shift their manufacturing plants from China to India, and they are in talks with officials at various levels in India. A minimum of 300 companies has been reported by top government sources to pursue production plans in various sectors, such as mobiles, electronics, medical devices, textiles, and synthetic fabric.
The official revealed, “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.”
He also said that once the outbreak of coronavirus is under control, a lot of plans would be executed and that India would come up as an alternate solution for manufacturing plants. Many countries like Japan, the US, and South Korea, that are already very much dependent on China for their manufacturing.
India To Be A Preferred Manufacturing Destination After China
For these companies, India is an alternate manufacturing hub, and they are putting forth their proposals to various levels of the government, including central government departments, Indian missions abroad and state industry departments.
China is being unanimously blamed for the outbreak of the Coronavirus pandemic. The US President blamed the country out in the open, saying that the world is suffering because of China. Japan has already announced $2 billion financial aid for its companies asking them to shift their manufacturing plants out of China.
Many other countries are expected to follow suit too.
Guruprasad Mohapatra, Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) said, “Now the world is rethinking its strategy of putting all eggs in one basket. A lot of interest is being shown by companies towards India.”
The Government is also promoting India to be a manufacturing destination, however, the production cost difference between India and South East Asian countries is about 10-12 percent.