Many MNCs have shown interest to shift base to India across various sectors such as electronics, retail, e-commerce, automotive, food processing, textiles, etc.
Goyal said there is a need to identify areas where sensible policies can help take exports to USD 1 trillion.
Many multinational companies have shown interest to shift base to India across various sectors such as electronics, retail, e-commerce, automotive, food processing, textiles, etc, commerce minister Piyush Goyal today said in a reply to a question in Rajya Sabha. However, he did not disclose the reasons for the relocation of operations due to the sensitivity of information maintained by the companies. Piyush Goyal added that FDI inflows usually help in augmenting domestic capital and promote employment opportunities across sectors. He apprised the house that the FDI inflow from the USA and other countries in the last fiscal year was $74.39 billion and for April–July 2020, it is $16.26 billion.
As various countries are looking forward to shifting their base out of China after the pandemic emerged, India has been consistently trying to take this as an opportunity and lure the foreign companies to invest in India. The government in April reached out to more than 1,000 companies in the US and through overseas missions to offer incentives for manufacturers seeking to move out of China, Bloomberg had reported citing Indian officials who asked not to be identified.
Piyush Goyal also said that the government is working hard to institutionalize more investor-friendly reforms to support and facilitate investments into India. He added that several steps like Production Investment Schemes, GIS mapping of available land banks, issuance of Quality Control Orders to cut down cheap imports, and many such measures have been put into place to attract further investment into the country.
Meanwhile, the commerce minister last week said that other countries must give India equal access to their markets. He underlined that trade relations between two countries rest on the pedestal of high reciprocity and equilibrium, and more countries are moving towards balanced trade. He assured the foreign firms that they will not only get a large Indian market but can also leverage the market to get economies of scale.