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Indian Govt Developing Land Twice Luxembourg’s Size To Lure Companies Looking To Exit China
Industries in Visakhapatnam (Nballa/Wikimedia Commons)
In a bid to attract the foreign investment by the companies looking to exit China, Indian government has identified and is developing a total area of 4,61,589 hectares, the area almost double that of Luxembourg, reports Economic Times.
As per report, this includes 1,15,131 hectares of existing industrial land in states such as Gujarat, Maharashtra, Tamil Nadu and Andhra Pradesh.
It should be noted the issue of land has acted as one of the major impediments for companies looking to invest in India. The plans of Saudi Aramco to Posco were frustrated by delays in the acquisition process.
The process is further complicated by the fact that the investors looking to set up factories in India have to acquire land on their own and have to often deal with multiple small land-owners.
However, the government is looking to ease the process and is working with the state government for the same. The aim is to lure investors who are looking to reduce the reliance on China as a manufacturing base in the aftermath of the coronavirus outbreak and the resultant supply disruption.
The government is also examining the move to utilise unused land available in special economic zones, which already have robust infrastructure in place.
The PM’s Office, Niti Aayog and the Department for Promotion of Industry and Internal Trade are firming up a plan to offer incentives in order to attract companies looking to shift manufacturing units out of China.
Reportedly, the government has hand-picked 10 sectors -- electrical, pharmaceuticals, medical devices, electronics, heavy engineering, solar equipment, food processing, chemicals and textiles -- as focus areas for promoting manufacturing.
The government has also asked foreign outreach departments and embassies to identify the companies who are looking for options.
Providing land with power, water and other facilities will attract new investment in the economy reeling with slowdown pressure due to the coronavirus pandemic.
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