In the wake of Covid-19 pandemic across the world, many investors are now considering to move out of China and relocate their businesses and firms to new locations.
The Yogi Adityanath-led BJP government in Uttar Pradesh in India is planning to attract such investors to the state, which would help in reviving the pandemic-hit economy.
Uttar Pradesh government is formulating and altering some of its policies to woo investors to relocate to the state. The basic idea to attract investors pulling out of China was floated by Uttar Pradesh Chief Minister Yogi Adityanath during a high-level key meeting held in presence of MSME Minister Sidharth Nath Singh and Industrial Development Minister Satish Mahana on Wednesday.
“The government will try to attract investors from some specific category including apparel manufacturing, automobiles, food processing, electronics. The state has also provided base to companies which are into manufacturing of mobile phones,” Singh told media after the meeting.
He continued, “The government will be reworking on some of the strategies as per the prevailing conditions. If we speak about the IT policy, we are working on how the subsidy promised for procurement of new equipment could be given to the companies who decide to relocate to the state along with their refurbished machinery. The IT department is working closely on it and they will be coming up with solutions that are in sync with the policies by central government on investment and industry.”
At present, companies from Japan, United States, Korea and other European nations with huge investment in China are mulling to move out after the Covid-19 pandemic. Meanwhile, Japan has already started wooing these investors by announcing economic package for the companies moving out of China.
The UP government was already working towards attracting investments to the state with an Investors’ Summit held in 2018 and Defence Expo held in Lucknow in February this year.
Experts believe that Uttar Pradesh could be the next hub of industrial activity and attract big economic investment, while the Jewar airport which is coming up in close proximity with the NCR region could play a crucial role in attracting investors to the state as well.
The textile and garment industry needs to prepare for the eventuality of scarce migrant labour once the state of UP starts to attract industries, and create jobs within the state itself.