China is worlds manufacturing superpower after working very hard in the last three decades. The whole world directly or indirectly dependents on china for their daily needs. After the historic lockdown, the world is realised that they have to decrease their dependency on China.
In recent years, tensions between the superpowers increasing day by day when trump started the trade war between US and China many companies are not sure about their future in China and starts choosing an alternative destination to shift their units slowly and now because of pandemics and the blaming war the companies accelerate their processes to shift the unit.
Countries like the United States, Japan, South Korea, and countries of the European Union decided to move their manufacturing units from china to their friendly nation like India and other south-eastern nations. Japan was the first nation who decided to shift their units, and even the Govt. of Japan is ready to pay the loss if manufacturers have to face any.
Initially, significant manufactures of the world wanted to shift their units to the south-eastern nation like Vietnam, Cambodia, but things changed India become their favourite Destination now. According to the ease of doing business ranking, India scored better than Vietnam and other south-eastern nations and also India is a bigger market than Vietnam or Cambodia so, its a bigger draw for investors looking to move outside China.
Govt. of India starts taking majors steps to attract these companies, and they reached out more than a thousand US-based companies. India is more economical in terms of securing land and affordable labours. They decided to provide the land two times of European country Luxemburg, i.e. 115,131 hectares of existing industrial land in states such as Gujrat, Maharastra, Tamil Nadu, Andhra Pradesh and Uttar Pradesh, decreased corporate taxes for new inverters offering incentives, promised to provide skilled labours, many states abolished old Labour laws by three years, better infrastructure, transportations, 24*7 electricity, Single window solution, etc.
India, as a Democratic nation, always have the potential to become the worlds Manufacturing hub. India is ready, have skilled and young labours, have stable Govt. who is willing to work in these areas to decrease the Jobless rate, which is currently 27.1%. Initially India prioritising companies in the field of medical equipment suppliers, Pharmaceuticals, electricals, solar equipment’s, food processing units, Automobiles, textiles, leathers and 500 other fields.
If India succeeded to invite these companies, this could help India to restart the economy easily and helps to improve % of manufacturing sectors by 2022 under the Make in India Scheme and also helps to decrease un employments rate.
Apple, Hyundai, Posco, Abbott, Medtronic, Adobe, Cisco Systems, UPS, FedEx, Lockheed Martin, Honeywell, Boston scientific, Mastercard are some major companies who chosen India as a new destination.