The coronavirus (COVID-19) pandemic is forcing many companies to reevaluate their supply chains. Thus, India is promoting incentives for companies looking to diversify their manufacturing outside of China. In New Delhi, the Prime Minister’s Office, National Institution for Transforming India, and Department for Promotion of Industry and Internal Trade are all working to advertise India as an attractive alternative source for manufacturing needs.
These efforts are initially targeting companies that manufacture electronic and medical devices. Incentives reportedly include expedited government approvals and production-linked incentives like capital expenditures. The government has also set up dedicated groups to directly interact with interested firms. Indian officials say they have already reached out to roughly 100 multinational firms. Overall, the pandemic has highlighted the risk of concentrating capacities in one single place.
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