India may offer incentives to as many as 324 companies to set up factories in the country. The move is aimed at benefiting from the current trade war between China and the US.
The list of companies includes American electric car-maker Tesla and pharmaceutical giant GlaxoSmithKline Plc (GSK), Hanwha Chemical Corp and Hon Hai Precision Industry Co.
A draft prepared by the Department For Promotion of Industry and Internal Trade under the Ministry of Commerce, says that to set up a factory, the government will provide land water, electricity and road access to these companies.
According to a Live Mint report, the move is aimed at opening up more opportunities for companies to invest in India. Because of the strict labour laws, companies think twice before starting an enterprise in India.
According to the plan, the land will be procured beforehand by the government or ready-to-move industrial clusters will be made available to them. The government will give incentives for plug-in hybrid vehicles, fuel efficiency and carbon taxation, under the proposal.
Since 2017, India has climbed 37 points to be placed at the 63rd position in the World Bank’s ease of doing business rankings. The economy has expanded five per cent in the first quarter of FY20. But along with increased exports, India also requires better inflow of foreign investment.
The Prime Minister’s Office is considering the proposal, and a decision on it will soon be taken.
