A thousand international companies have planned to transfer production from China to India to reduce dependence on China and diversify risks. Most companies manufacture mobile phones, electronics, medical equipment and clothing. Even you can open your phone back; surprisingly, you will find it assembled in China.
China exploited pandemic:
The coronavirus epidemic exposed the risks of concentration in one country as China is all into boosting their economy thorough this pandemic. Companies are planning to move out if there. A few days ago, China exploited the Covid-19 situation and filled all of its reservoirs with Oil.
Additional risks carry a political factor. China’s actions to combat coronavirus and the lack of information transparency have been criticized by senior US and European officials. WHO is also even dragged into this because of China’s policy.
India is the possible alternative:
Corporations see India as an alternative manufacturing centre and have already communicated their proposals to senior Indian government officials. Because after China, India is the only country with more freedom and fewer restrictions. The country has a transparent view to media and outer world, which even stops the government to exploit the companies.
Among those planning to relocate are companies from Japan, the United States and South Korea, The Economic Times reports.
The leadership of many countries is ready to provide financial assistance to companies that decided to transfer production from China. The Japanese government has announced the provision of $ 2 billion for these purposes.
It will be harder to choose others:
The business will have to pay for the transfer of production to India. On average, work in this country is 10-12 per cent more expensive than in countries in Southeast Asia. Other counties which will act as an opportunity include Vietnam, Bengal, Maldives and some other countries though it will be difficult for companies to function in other countries.
India is ready not only to organize production on its territory but also to invest in the economies of other countries. Earlier it was reported that India would open a billion-dollar credit line for Russia to develop the Far East. For Russian- Indian relationship, it is a good step.