The
US-India Strategic and Partnership Forum's (USISPF) President Mukesh Aghi said
that the companies are talking to them about how to set up an alternative to
China by investing in India.
About 200 American companies are seeking to move their
manufacturing base from China to India post the general elections, a top
US-based advocacy group has said, observing that there is a fantastic
opportunity with firms looking at alternatives to the Communist giant.
The US-India Strategic and
Partnership Forum's (USISPF) President Mukesh Aghi said that the companies are
talking to them about how to set up an alternative to China by investing in
India.
Aghi said that USISPF's
recommendation to the new government would be to accelerate the reforms and
bring transparency in the decision-making process.
“I think that's critical. We
would advise to bring more transparency in the process and to make it more consultative
because in the last 12 to 18 months, we are seeing US companies look at some of
the decisions being made, either e-commerce or data localisation, as more
domestic-oriented than global,” he told PTI in an interview.
In his reply to what
the agenda of the new Indian government should be to attract investment, Aghi
suggested that New Delhi needs to accelerate reforms, be more transparent in
the process and engage more.
“We need to understand
how we can attract those companies. And that means all the way from land issues
to customs issues to being part of the global supply chain. Those are critical
issues. There's a whole plethora of reforms that need to go further down, and I
think that is also going to create a lot of jobs,” he said.
He said that Mark
Linscott, the former Assistant US Trade Representative for South and Central
Asian Affairs, is working with USISPF member companies to come up with a
recommendation as to what India needs to do to enhance its exports and work up
from that perspective.
“One recommendation,
which I strongly believe is going to help India is that we should now start
thinking of a Free Trade Agreement (FTA) between India and the US," Aghi
said.
"I think if India
is concerned about cheap goods coming from China, an FTA will eliminate that
need. You can put barriers to Chinese goods and still have the US
providing access to the Indian market and Indian companies having more access
to the US market, and issues like GSP would diminish,” he said.
Aghi said that they
have formed a high-level manufacturing council within the member companies, led
by John Kern, Senior Vice President of Supply Chain Operations at Cisco who are
putting a document together detailing what India needs to do to turn it into a
manufacturing hub.
"We plan to have
the document ready by the time elections are over as part of recommendation,”
he said.
“What they're saying
is we want a backup strategy to start manufacturing in India. There are
small-small issues, which can slow them down. And at the moment most of them
are waiting for elections to be over. But there's a large deluge of companies
keen to not only manufacture in India but also who want to go after the
domestic market,” he said.
On the amount of
investment these companies would bring to India, he said the number in question
is substantial.
“If you look at, our member companies in the last four years
have invested over USD 50 billion,” he added.
Source: https://www .moneycontrol.com/news/trade-2/about-200-us-companies-seeking-to-move-manufacturing-base-from-china-to-india-usispf-3902081.html
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