India Offers Land To Companies Leaving China

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Capital is one of the three main factors of production, which are critical to the growth of a commercial entity, the other two being land and labour.
But capital is only a necessary, not sufficient, condition.

India is developing a land pool nearly double the size of Luxembourg to lure businesses moving out of China.
Luxembourg is spread across 243,000 hectares, according to the World Bank.
A total area of 461,589 hectares has been identified across the country for the purpose.
That includes 115,131 hectares of existing industrial land in states such as Gujarat, Maharashtra, Tamil Nadu and Andhra Pradesh

WHY LAND IS AN IMPORTANT FACTOR IN INDIA?

At present, investors keen on setting up a factory in India need to acquire land on their own.
The process delays the project as it involves negotiating with small plot owners to part with their holding.
Land has been one of the biggest impediments for companies looking to invest in India, with the plans of Saudi Aramco to Posco frustrated by delays in acquisition.
As investors seek to reduce reliance on China as a manufacturing base in the aftermath of the coronavirus outbreak.
Central administration is working with state governments to change the difficulties faced by firms

Providing land with- Power, water and road access may help attract new investments to an economy that was slowing even before the virus hit.

Making unused land available in special economic zones, which already have robust infrastructure in place, is also being examined.

The government has hand-picked 10 sectors —
Electrical, pharmaceuticals, medical devices, electronics, heavy engineering, solar equipment, food processing, chemicals and textiles as focus areas for promoting manufacturing.
It has asked embassies abroad to identify companies scouting for options.

Invest India, the government’s investment agency, has received inquiries mainly from
Japan, the US, South Korea and China, expressing interest in relocating to the Asia’s third- largest economy.
The four countries are among India’s top 12 trading partners, accounting for total bilateral trade of $179.27 billion.

States have been separately urged to evolve their own programs for bringing in foreign
Andhra Pradesh is in touch with several firms from Japan, the US and South Korea.
Uttar Pradesh is also developing an online system for land allotment for all industrial and commercial purposes.
UP is also in talks with global companies for attracting investments in sectors such as defense and aerospace.