India: Will Prepare a Project for Companies Beyond China: Sitharaman | India News

WASHINGTOJN: The Union Finance Minister Nirmala Sitharaman announced Sunday that it would prepare a plan for businesses to internationally who plan to make India a destination of choice for their investments.
She said industry leaders planning to take their businesses out of China "believe India is the solution."
Therefore, she said, it may be important for the government to see and meet a large number of industry leaders and invite them to India.
"That would certainly be what I would do ... I'm going in a way that will identify multinational companies, all US companies or any other European or British origin country that are leaving China or who I'm going to make a plan with which I will approach them and explain to them why India is a much more preferable destination, "Sitharaman told a group of Indian journalists after his annual meeting. of the International Monetary Fund and the world Bank click here.
It could also be in specific areas in which India has the common ability to create an ecosystem, be it electronics, lithium battery or any other semiconductor, she added.
However, Sitharaman said the government's decision would not be simply based on what is happening between the United States and China.
"It could aggravate the situation or probably just influence at a certain level. But the fact remains that there are companies that are considering relocating for various other reasons, "she said.
"That's why I said what I'm describing about companies that would like to locate elsewhere in China. Even though I said that, I said that not all companies will want to. Outside of China, some companies will stay on the ground to serve the Chinese market.
"After all, China being a very big domestic market and its purchasing power, its style of consumption can be very different from what it is in India, but I'm already making that margin that companies will probably be there to maintain the Chinese market tension or not, "said the Union Minister.
She said India wanted to create an ecosystem to invite companies to exploit the country's market.
"I already allow this margin. That's about it for these companies, even if they continue to be in China but would still want to produce elsewhere, either to export or to conquer a new hub, an internal market like India, "said Sitharaman .
"There was one. What is very clear is that India is still for them (companies), one of the biggest options to consider," she added.
The Minister stated that it was perceived that the opportunities offered by the
Vietnam were not so attractive.
"In fact, today, one of the conversations I had with some bank and government officials was that even Vietnam is probably becoming saturated. They do not have enough manpower to deal with expansionary investment programs, "she said.
"So, given that we have taken a more favorable approach to corporate income taxation, with the reduced corporate tax and the problems we've just talked about Vietnam, there's more chance that the companies that transfer those investments that want to go to China certainly turn to India, "said Sitharaman.

This article appeared first (in English) on THE TIMES OF INDIA