Union Finance Minister Nirmala Sitharaman Saturday said that she will prepare a blueprint for global companies that are looking beyond China to make India as their preferred destination to invest.
The minister said industry leaders who are contemplating getting their businesses out of China are “definitely considering India is the pitch”. Therefore, she said, it might be important for the government to now see and meet up with a lot of industry leaders and invite them to India.
“I’d certainly be doing that…I go back and design in some way whereby I will identify those multinational corporations, all American businesses or any other country European or a British origin who are moving out of China or who probably are even contemplating. I will make a blueprint with which I will approach them and put forward to them as to why India is a far more preferable destination,” Sitharaman was quoted as saying by news agency PTI.
Union Finance & Corporate Affairs Minister Smt. @nsitharaman addressing the Plenary Session of the International Monetary and Financial Committee (IMFC) during the IMF-WB Annual Meetings 2019 in Washington DC on 19th October 2019.#IMFmeetings #WorldBank pic.twitter.com/isPVjeopKP
— Ministry of Finance (@FinMinIndia) October 19, 2019
Sitharaman, who was attending the annual meeting of the IMF and the World Bank in Washington, however, made it clear that the decision of the Indian government will not just be purely on the basis of the ongoing Trade war between the United States and China.
“That could either aggravate the situation or probably just influence at some level. But the fact remains that there are companies which are looking at relocating for various other reasons also,” she said.
“That is why I gave that little fine line that I’m drawing about companies which would want to locate elsewhere outside of China. Even as I said that not every company wants to lock, stock and barrel get out of China, there are companies which will remain there to service the Chinese market,: the minister said.
She added that the move could also be in specific areas in which India has common capacity ecosystem building, whether it’s electronics, lithium-ion battery or any other semiconductors.