From the ongoing trade war between the United States of America (USA) and China, the country that stands to gain the most is India. Several big firms from around the world are mulling to transfer their bases from China to India in the wake of the economic slump triggered by the novel coronavirus pandemic.
Reports have it that several South Korean majors are not doing well in China off-late and are keen to shift their factories to India. Several such companies have already approached the Korean consulate in Chennai, requesting him to initiate a dialogue with the Indian authorities.
"We have requested from two iron and steel companies, some startups and one from the hospitality sector which wants to come to India from China," said Yup Lee, the deputy consul general for the Consulate General of The Republic of Korea.
Centre eager to see Posco, Hyundai steel to India
The government of India appears to be working towards making the most of the opportunity as Yup Lee further informs that the Centre is persuading giants like Posco and Hyundai Steel to set their bases in the state of Andhra Pradesh.
"Posco and Hyundai Steel have agreed to move to Andhra Pradesh if they decide to invest. The two companies are looking for 5,000 acres of land and port connectivity," said Lee, adding that a number of companies are wanting to come to India.
However, India may have to wait a bit longer as the ongoing COVID-19 crisis is likely to cause some delay in the process.
Japan jumps the sinking ship of China
One of the first major countries to pull out of China's 'controlled economy' is Japan. It has been learned that the Japanese government has allocated a massive budget of $2 billion to facilitate the transfer of its companies.
To make sure that the Japanese land up in India and not in Malaysia, Vietnam or Thailand, the Centre and the state governments need to work in harmony and ease the process of setting up of factories by foreign companies in the country.
If India plays its card right over the next few months, there will be a huge influx of Foreign Direct Investment (FDI) in the country in the coming years.