Cisco, Adobe, UPS, FedEx May Ditch China & Relocate To Uttar Pradesh; 100 Firms Shifting Base
Due to the coronavirus pandemic, the world economy has degraded to dreadful levels. With economies of different countries coming to a halt, countries having their manufacturing hubs in China are now looking forward to shifting their units to countries like India.
We had some time back informed you of many companies from South Korea wanting to shift their manufacturing units from the communist nation to India, simply post the Covid-19 situation.
Now, we have information that over 100 America companies are looking forward towards to shift their operations out of China and move to India.
The Centre has set up a committee of joint secretaries from different ministries and departments to see how to attract foreign investment in these trying times. A couple of States too have got into the act.
UP MSMEs to Host US Cos
In the wake of the geopolitical and economic repercussions of the Covid-19 pandemic, many companies are now considering to move out of China and relocate their businesses and firms to other nations so as to reduce their dependency on China.
Trying to make the maximum of the situation, the Yogi Adityanath govt in Uttar Pradesh has been putting in all efforts to attract these investors to the state, which would help in reviving the pandemic-hit economy.
As many as 100 US companies keen on exiting China after the Covid-19 pandemic are seriously considering Uttar Pradesh as their new destination.
Uttar Pradesh’s minister in charge of MSMEs Siddharth Nath Singh and Industrial Development Minister Satish Mahana had a high-level key meeting video conference with a number of American companies, on Tuesday.
What Opportunities can Knock on UP’s Doors?
In this webinar organised by the United States-India Strategic Partnership Forum, the representatives of US companies showed interest in the fields of agriculture, electronics, medicine, scientific instrumentation, logistics, defence, aviation, food processing MRO, etc.
Some of these companies were Lockheed Martin, Adobe, Honeywell, Boston Scientific and Cisco Systems as well as global delivery services providers like UPS and FedEx.
As per Singh, the UP govt discussed with these cos, the scope of investment in UP and informed them that the state is home to more than 90 lakh MSMEs and skilled labour.
They also highlighted that the state is coupled with forces of stable government and a robust support infrastructure in terms of roads, water supply, irrigation capacity and 24×7 power supply.
They informed these companies that the state government had developed 21 sectoral policies, mainly in the areas of defence, pharmaceuticals, food processing, electronics and education sectors.
What Areas are some of these Cos interested in?
- Mastercard is keenly looking forward to tap opportunities in rural areas by providing the facility of digital payment to kirana stores.
- UPS and Fredix showed interest in investing in Jewar airport, by developing logistic centres.
- Bostan Scientific has plans to set up a medical equipment plan.
The cos are also curious about incentives that UP would offer if they shift the base from China. To this, Singh informed them about various incentives, like capital subsidy and land subsidy.
Modi Asks Ministers to Turn Covid-19 into Opportunities
On Monday, Prime Minister Modi had advised the states to turn the coronavirus crisis into an opportunity.
At present, companies from Japan, the United States, Korea and other European nations with huge investment in China are mulling to move out after the coronavirus pandemic.
UP government has started reformulating its various policies to suit these investors who are contemplating opting out of China in the wake of the coronavirus outbreak.
The Yogi government in Uttar Pradesh has been pitching itself as an attractive investment destination in the past few years. The Investors’ Summit held back in 2018 and also Defence Expo held in Lucknow in February this year has already attracted foreign interests.