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There is a silver lining amidst all the uncertainty. Right now there is a global backlash against China due to their lack of transparency in how the virus spread initially. Now the entire world is facing huge issues. Countries have been under extended lockdown and a large number of lives have been lost.

Many large countries are asking their companies to relocate their production facilities away from China, either partially or fully. There are reports the Government of India is looking at the opportunity and taking steps to facilitate such movement to India. India is developing a huge land pool nearly double the size of Luxembourg to lure businesses moving out of China. A total area of 461,589 hectares has been identified across the country the purpose includes 115,131 hectares of existing industrial land in states such as Gujarat, Maharashtra, Tamil Nadu and Andhra Pradesh, The news report states that the administration under Prime minister Mr. Modi is working with state governments to ease the process of land acquisition for such companies.

We know that land acquisition has always been a major problem for investors in India. It was very difficult for foreign investors to invest due to the complex process of land acquisition. But in view of the prevailing unemployment and hard-hit economy due to COVID-19, now the government is trying to make this process easier. In many ways, India would be an attractive place for business as here they can find

  • Huge connected coastal area
  • Cheap and skilled workforce
  • Good support ecosystem including Information Technology and BPO Services,
  • Stable democratic government
  • Large domestic consumption opportunity

Such large capital flows will be very promising for the future of India by generating demand in all spheres of the economy.