Categories: Business

India has potential to attract American companies, but will have to increase manufacturing base

India has potential to attract American companies, increase manufacturing base

Lucknow. In this period of ongoing tensions between the US and China over the Corona epidemic, a leading US industrialist has said that India has the potential to attract American companies but will have to further strengthen its manufacturing base. Indian-American industrialist Frank Islam said on Thursday that India is seeing possibilities for itself in America's displeasure with China and a warning to expand its business from there. If American companies consolidate their business from China, then it will surely benefit India too.

He said that China is the largest manufacturing country in the world and it has 20 percent share in global manufacturing. Although there is little chance of American companies ending their business from China altogether, if this happens, India may get a bigger share of manufacturing business. Islam, a native of Azamgarh in Uttar Pradesh, said that India has the infrastructure and environment to become the world's information technology hub, but its manufacturing base is not as strong. India can attract US IT companies to invest in it.

America's iconic F.I. Investment Group Chairman and CEO said that any company takes a decision based on profit and loss. India will surely get some benefit from America's displeasure with China. He said that it is very important for India to strengthen its manufacturing base. Currently, India accounts for just 3 percent of the global manufacturing product. India needs to improve its economy so that it gets more and more foreign investment and its infrastructure is strengthened.

It is expected that the US companies which have traded from China will choose India as their next destination. Especially the Uttar Pradesh government has given instructions to the officials to prepare a special package to explore the possibility of bringing American companies from China. Uttar Pradesh MSME Minister Siddharth Nath Singh said after a webinar discussion with American companies recently that many American companies are willing to invest in Uttar Pradesh. Islam said that if American companies consolidate their business from China, it would certainly be a big blow to China. Although China's domestic market is also huge.

Chinese companies sell billions of dollars of goods in markets in Europe, West Asia, South America and Africa. Even if China loses American companies, it will not have much impact on its economy. On a question, he said that China and the US together account for about 41 percent of the global economy. If there is a serious confrontation between these two then the global economy will have a very bad effect.

This post was published on May 7, 2020 2:07 pm

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