Competition has begun among the Indian states to bring Japanese companies who have made a distance from China. Following China‘s role and attitude in the global pandemic of coronavirus, the Japanese government has asked its companies operating in China to move out of that country. Now, the Vijay Rupani government of Gujarat has entered the race after the Yogi Adityanath government of Uttar Pradesh entered the fray.
The Shinzo Abe government has proposed to help these Japanese companies with $ 21.5 million if they relocate their production outside China. Further, To facilitate Japanese companies’ return home, the Abe government has set up a fund of $ 200 million or about Rs 15,000 crore. The states of India are eyeing shares from the amount.
If successful in bringing Japanese companies to their state, companies of the US and other countries may be motivated to set up their units in these states too.
Gujarat has been hosting Japs already
Manoj Das, principal secretary (industry) in the Government of Gujarat has written a letter in this regard to the government and business heads of Japan.
The Gujarat government says that they already have a number of Japanese companies working there and a separate industrial park for Japanese companies. The government of this state offers also several financial discounts on setting up units connected to more than 30 types of areas.
According to the state government, a massive campaign will be launched to bring Japanese companies wishing to exit China as soon as the lockdown caused by the global pandemic of coronavirus disease (COVID) ends.
Sirf News has already reported that the Uttar Pradesh government also wants the companies fleeing China to set up units in the state. Recently, Chief Minister Yogi Adityanath asked the industries minister to formulate a policy, keeping these companies in mind. The state ministers and bureaucrats have held meetings in this regard.
In a meeting with the industrial organisation this week, MSME Minister Nitin Gadkari said that the union government too would intensify efforts to bring Japanese and American companies looking for an escape route out of China to India after the lockdown ends.
According to industrial experts, Indian states would succeed in this endeavour to bring foreign companies only when both the central and state governments work in unison, as the Centre’s readiness alone would not work. From giving the industries land to helping them set up units, the task of the state governments is to make the path easier for the foreign firms at the local level.