The US government’s Department of State is supporting the view that India could be a preferred investment destination for American companies should the US ceases its business in China in the aftermath of Covid-19 outbreak. This comes after various state administrations in the US repeatedly blaming China for the global spread of the virus.
The importance of India as a potential alternative to China should the business be shifted was underlined repeatedly during a meeting organized by the American Chamber of Commerce in India (ACCI) last week. The meeting was attended by the representatives of several American companies operating in India, and a senior official of the US Department of State.
During the meeting, the assistant secretary of state for South Asia in the US Department of State, reportedly told the representatives attending the virtual meeting that India can quickly become a favourable jurisdiction for more of the industrial activities that are currently happening in China.
Vajda also said that the government relations between the two countries will be supportive. Sources also state that during the meeting, the representatives of the US-based companies were advised to propose to the Indian government to offer incentives that would facilitate proliferation of US businesses in the country. This would create a ready environment for more businesses to come to the country.
Analysts suggest that the move would be well timed, and the Indian government would also be developing strategies to attract investment from overseas, including those shifting their base from China. The Department for Promotion of Industry and Internal Trade (DPIIT) is also reported to have set up a committee of joint secretaries from across ministries and other departments to reach out to the industry leaders and seek suggestions.