India Offers Land for Businesses Leaving China
India is developing a land pool nearly double the size of Luxembourg to lure businesses moving out of China. A total area of 461,589 hectares has been identified across the country for the purpose. That includes 115,131 hectares of existing industrial land in states such as Gujarat, Maharashtra, Tamil Nadu and Andhra Pradesh.
Land has been one of the biggest impediments for companies looking to invest in India. PM Modi’s administration is working with state governments to ease the acquisition of land pool for investors as they seek to reduce reliance on China as a manufacturing base in the aftermath of the coronavirus outbreak.
The government has hand-picked sectors of electrical, pharmaceuticals, medical devices, electronics, heavy engineering, solar equipment, food processing, chemicals and textiles — as focus areas for promoting manufacturing in India. States have also been separately urged to evolve their own programs for bringing in foreign investments.
It has asked embassies abroad to identify companies scouting for options. Invest India, the government’s investment agency, has received inquiries mainly from Japan, the U.S., South Korea and China, expressing interest in relocating to the Asia’s third-largest economy, the people said.
The four countries are among India’s top 12 trading partners, accounting for total bilateral trade of $179.27 billion.