Niti Aayog and the Department for Promotion of Industry and Internal Trade, India are firming up a plan to offer incentives in order to attract companies looking to shift manufacturing from China.
This includes 1,15,131 hectares of existing industrial land in Indian states such as Gujarat, Maharashtra, Tamil Nadu and Andhra Pradesh, a report by Bloomberg stated.
There is a growing realisation among multinational companies after the corona pandemic manufacturing and supply chain cannot be concentrated at one place.
Prime Minister Narendra Modi wants to use the opportunity where industries are moving out of China and see how they can be brought to India. With over 100 American companies shown interest to set up business in India.
Big Companies from logistics, electronics, automobile and scientific instrumentation sectors are likely to come to India. Amid chances of China possibly losing its tag of preferred manufacturing hub following coronavirus, around 1,000 foreign companies are in talks with the Indian authorities. At least 300 of these companies are actively pursuing production plans in sectors such as mobiles, electronics, medical devices, textiles and synthetic fabric, according to top government sources.
These companies see India as an alternate manufacturing hub and have taken up their proposals across various levels of the government, including central government departments, Indian missions abroad and state industry departments.
According to Forbes, The Reshoring Index compares U.S. manufacturing gross output to import data from 14 Asian low-cost countries.
To gauge the U.S. Reshoring Index, Kearney first looks at the import of manufactured goods from China, Taiwan, Malaysia, India, Vietnam, Thailand, Indonesia, Singapore, Philippines, Bangladesh, Pakistan, Hong Kong, Sri Lanka, and Cambodia; and secondly looks at U.S. domestic gross output of manufactured goods. They then calculate the manufacturing import ratio (MIR) to analyze the value of manufacture imports from above-mentioned countries.
Apart from U.S. Japan designated $ 2billion package for companies willing to shift their production to Japan.
These changes and new learnings of business offshoring opens many ways to have specific operations at specific locations to gain benefits for business continuity, better supply chain management & reduce dependency.
Considering above government initiatives to explore India business opportunities we are also seeing a growing interest in our services from all over the world.
Remunance helps foreign companies to help setup their business in India which includes government legal procedures, Employee hiring, Infrastructure support, HR & Administration, Taxation of companies.
Remunance also is a renowned PEO & EOR service provider in India. Remunance also is a renowned PEO & EOR service provider in India.
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