A total area of 461,589 hectares has been identified in India, as per sources. Luxembourg is spread across 243,000 hectares.
New Delhi| A land pool nearly double the size of Luxembourg is being developed by India to attract firms moving out of China, Bloomberg reported.
For the purpose, a total area of 461,589 hectares has been identified across the nation. The total area also includes 115,131 hectares of existing industrial land in states such as Maharashtra, Gujarat, Tamil Nadu and Andhra Pradesh, they said. Luxembourg is spread across 243,000 hectares, as per the World Bank.
One of the biggest obstacles for companies looking to invest in India has been land, with the plans of Saudi Aramco to Posco disappointed by impediments in the acquisition.
PM Narendra Modi’s government is working with state governments to improve that as investors attempt to decrease reliance on China as a manufacturing base in the aftermath of the novel coronavirus pandemic and the resultant supply disruption.
Presently, investors interested in setting up a factory in India need to obtain land on their own. In some cases, the process delays the project as it involves bargaining with small plot owners to part with their holding.
Rahul Bajoria, senior economist, Barclays Bank Plc, said: “Transparent and speedy land acquisition is one of the factors which can help in boosting FDI inflows.”
Also Read: China Hid Coronavirus Severity To Hoard Supplies: Report
For an economy that was slacking even before the virus hit, and is now gawking at a rare contraction as a national lockdown hit consumption, providing land with power, water and road access may help attract new investments.
Electrical, electronics, pharmaceuticals, heavy engineering, medical devices, solar equipment, chemicals, food processing and textiles are the 10 sectors that the government has hand-picked as focus areas for promoting manufacturing.
It has asked embassies abroad to identify companies scouting for options. Invest India, the government’s investment agency has received inquiries mainly from Japan, the U.S., South Korea and China expressing interest in relocating to Asia’s third-largest economy, Bloomberg reported.
Many organisations from Japan, the U.S. and South Korea are in touch with the southern Indian state of Andhra Pradesh.
(Inputs from Bloomberg)
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