In the wake of the geopolitical and economic consequences of the global coronavirus epidemic, many companies are now thinking about moving out of China and shifting their plant to other countries. Japan has also announced several incentives for Japanese companies to leave China. America would also pay the moving cost for American companies that relocate from China, stated by the director of the White House National Economic Council in April 2020. Nationwide lockdown due to COVID 19 pandemic may be a critical period for the economy but, it can be turned into a golden opportunity for a country like India. Prime Minister NarendraModi has asked officials to formulate policies to attract the firms which would move to India from China. To make our economy strong, we should take benefit of the COVID-19 challenges as an opportunity to attract foreign investors.
Moreover, companies moving out of China will at least look for a place where they can get facilities like China from labor to infrastructure areas. In such situations besides India, there are many countries like Malaysia, Indonesia, Thailand, and Vietnam at the forefront of attracting these companies. Before another country grabs this golden opportunity, Chief Minister of Uttar Pradesh Mr. AdityaNath Yogi has spoken to Minister of MSME Mr. SidharthNath and the Industry Minister Mr. SatishMahana to set up a task force and initiate a discussion with embassies of different countries interested to invest in the state. Mr. Yogi also added that the government would offer tailor-made facilities along with the proper business environment while such companies will move to Uttar Pradesh from China. He is putting the best possible efforts to woo these investors in the State that would help in strengthening the pandemic-hit economy.
The positive effect of this initiative is visible now, and many companies started showing their interest digitally over video conferencing and webinars. According to the sources, about 1000 foreign companies are in touch with government officials to set up their factories in India amidst problems arising due to the Coronavirus pandemic. In which, at least 300 companies are actively approaching the government to set up units in India in the fields of mobile, electronics, medical devices, textiles, food processing, and synthetic fabrics.
Korea Chamber of Commerce and Industry (KCCI) chairman Yongmaan Park also had a discussion over video conference with SidharthNath on 1st May 2020, which has been organized by the PHD Chamber of Commerce and Industry. Yongmaan has shown his interest in investing in Uttar Pradesh because Korean companies have the possibility of moving out of China amid coronavirus outbreak. He said, mainly Korean electronics makers are looking to shift their manufacturing units from China. MSME minister Mr. Sidharth is welcoming this offer of KCCI and would help them in setting up their units in Uttar Pradesh.
Specially designed electronic manufacturing hubs in Noida and Ghaziabad may attract foreign companies because these economic zones have good infrastructure, excellent transportation facilities, and adequate manpower. Furthermore, UP government is planning to offer many benefits to these companies that may include land subsidy, an exemption in stamp duty and electricity rate, bank loans at concessional rates, etc. Moreover, the government would also contribute to their research & development and provide GST reimbursement for ten years.
Opportunities for Real Estate in Noida – Greater Noida
The real estate sector would surely attract more investors for commercial investment in the National Capital Region. Uttar Pradesh will take the lead to attract foreign investors because of the upcoming international airport at Jewar, the best industrial places like Noida and Greater Noida, and the availability of low-cost workers, etc. Once this lockdown is over, the officials will put the best feasible efforts to meet foreign investors.
In the wake of such opportunities, real estate would be one of the most focusing sectors in India. The ROI in property investment would be high compared to other investments. The government will also intervene and come up with many opportunities for real estate investors. According to the sources, India is planning to offer about 461,589 hectares of industrial land identified in different regions to lure the businesses moving out of China. If everything remains same, then prices of the properties in Noida and Greater Noida would surely jump due to the high demand for industrial and commercial land. Therefore, in the current scenario, real estate seems to be oneof the best sectors for investment in UP at least.