Thousands Of Companies Shift Out From China After Coronavirus

For Indian Prime Minister Narendra Modi, a surge in investment would help shore up an economy battered by an eight-week nationwide lockdown to control the Covid-19 outbreak, and help him make up ground hitting a target to grow its manufacturing sector to 25% of gross domestic product by 2022 from 15%. The need to create employment is now even more urgent after the pandemic left 122 million people jobless and forced India to shut down all major cities.

India invites most of U.S. businesses, including medical devices giant Abbott Laboratories, to relocate from China as President Donald Trump’s administration steps up efforts to blame Beijing for its role in the coronavirus pandemic.

The government in April reached out to more than 1,000 companies in the U.S. and through overseas missions to offer incentives for manufacturers seeking to move out of China, according to Indian officials who asked not to be identified, citing rules on speaking with the media. India is prioritizing medical equipment suppliers, food processing units, textiles, leather and auto part makers among more than 550 products covered in the discussions, they said.

Trump’s move to blame China for its handling of the Covid-19 outbreak, which has killed more than a quarter-million people worldwide, is expected to worsen global trade ties as companies and governments move resources out of the world’s second-largest economy to diversify supply chains. Japan has earmarked $2.2 billion to help shift factories from its neighbor, while European Union members plan to cut dependence on Chinese suppliers.

India exports electronic products worth $9 billion each year, while its domestic market is estimated at $120 billion. “We don’t see so much interest from Europe, but definitely from US, there is a shift since the beginning of the year," Manwani said, adding that Japanese and South Korean firms are also interested in developing supply chains from the country.

Reasons why India has become the ultimate offshoring destination for big companies

1.India has the largest professional and technical talent pool in the world and an immensely talented workforce.

2.India offers flexible pricing options for business hours call center services & after-hours call center services.

3.India provides consistent premium quality services.

4.India boasts of the best in technological Infrastructure and capabilities.

5.The Indian Government is very stable and offers attractive IT strategies.

6.Indian companies provide the quickest turnaround time (time-to-market).

7.Unique time zone advantage making it easy to provide 24/7 services.