ReutersAug 29, 2019 21:15:11 IST
India is targeting companies including Apple, Foxconn and Wistron Corp with a charm offensive aimed at encouraging them to shift business out of trade war-hit China, according to a source and a document seen by Reuters.
Several Indian officials met on 14 August and discussed a list of “target companies” that also include Taiwan-headquartered contract manufacturer Pegatron Corp, a source with direct knowledge said.
The dispute between the United States and China, the world’s two largest economies, has led to higher tariffs on goods worth billions of dollars and disrupted global supply chains, prompting companies to look at other investment avenues to escape higher tariffs.
Amid suggestions that India is late to capitalise on the trade war, government ministries have been asked to submit their policies and incentive structures to Invest India, the country’s foreign investment promotion agency. Nine sectors including electronics, autos pharmaceuticals and telecoms will be targeted.
The document said the government will meet companies between 26 August and 5 September to suggest the best investment zones for their operations. State governments will also participate.
A “complete package” detailing market factors and Indian incentives on offer will then be readied for presenting to potential investors, according to the government record of the Aug. 14 meeting seen by Reuters.
Apple, Wistron, Pegatron and Foxconn did not respond to a request for comment.
It is not clear whether the government will dole out new incentives or just detail existing ones, but the document shows India wants to explore opportunities and move swiftly, even as some fear it has missed the bus.
As companies think about rebuilding supply chains outside of China, a major global manufacturing hub, nations such as Vietnam have emerged as top destinations given the faster clearances and stable policies they offer, industry experts say.
Alphabet Inc’s Google is shifting its Pixel smartphone production to Vietnam from China starting this year, the Nikkei business daily reported on Wednesday.