InvestorQ : How much is India likely to benefit from US and other European companies moving their manufacturing operations out of China? Will they come to India?
Juvina Maggie made post

How much is India likely to benefit from US and other European companies moving their manufacturing operations out of China? Will they come to India?

Answer
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Angel dcosta answered.
5 months ago


It may be early days to really say with confidence that manufacturers will shift to India but the effort is still on. India is seeking to lure American businesses, including Abbott Laboratories, to relocate from China as Trump has squarely blamed Beijing for its role in the Coronavirus pandemic. Indian government has already reached out to over 1000 companies in the US to offer incentives for manufacturers seeking to move out of China. India is prioritizing medical equipment suppliers, food processing units, textiles, leathers and auto part makers among the 550 products covered in the discussions. India is relatively more economical in terms of securing land and affordable labour also land acquisition and labour laws have been a bone of contention in the past. Infrastructure standards could be another bottleneck and in the last few years, companies moving manufacturing out of China have preferred places like Vietnam and Thailand over India.