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It’s officially Haryana Vs Uttar Pradesh in wooing businesses fleeing China. And it’s going to be delicious

No one wants to miss the bus

Akshay Narang by Akshay Narang
5 May 2020
in Opinions
haryana uttar pradesh china
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For decades, China has used its inhumane labour laws and low wage rates to emerge as the manufacturing hub of the entire world that supports its exports-based economy, but with the Coronavirus Pandemic and the mighty Dragon’s irresponsible behaviour, multi-national companies (MNCs) are now planning to exit the country.

Directly benefitting from the outrage against Beijing is India which offers conditions prolific for establishment of manufacturing plants and factories. This is one opportunity that Modi government doesn’t want to miss and this is why it has started identifying a massive land pool to attract foreign companies.

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‘We are ready,’ India identifies land pool twice the size of Luxembourg to welcome companies leaving China

The Centre has also urged the states to formulate their own plans for attracting investments from abroad, and the state of Uttar Pradesh had, in fact, already started moving ahead in this direction with the Yogi government already wooing American, Japanese and Korean companies to translocate their operations and invest in the most populous state of India.

Read more: https://tfipost.com/2020/04/from-shanghai-to-noida-top-us-companies-based-out-of-china-to-move-to-uttar-pradesh/

Read more: https://tfipost.com/2020/04/leave-china-and-come-to-up-yogi-government-plans-special-package-to-woo-companies-fleeing-china/

And now Uttar Pradesh’s neighbour- the state of Haryana has also jumped into the fray with Chief Minister Manohar Lal Khattar also making an ambitious pitch to attract firms moving out of China.

Haryana is also reportedly targeting foreign companies, that is, the ones who either intend to shift their operations out of China or those who want to set up manufacturing facilities in India. As a part of Haryana’s push to bring in foreign investments, Principal Secretary to Chief Minister Rajesh Khullar will hold an open house with potential investors from 3 pm to 4 pm everyday via webinars from May 6-8.

A number of Japanese, Korean, American and Eurozone companies are looking to shift their businesses out of China and translocate into other South Asian locations- Vietnam and India being the preferred destinations that are fighting a close battle to woo these investors.

Haryana government has chalked out a strategy to create windows in the existing policy framework which will facilitate the setting up of manufacturing facilities in industrial estates of the choice of MNCs wanting to shift production from China.

The Khattar government is reaching out to investors in order to understand their individual needs in terms of land area, payment terms, incentives sought and business facilitation sought. Haryana is therefore considering offering tailor-made locations to these investors in order to woo them.

Other states such as Tamil Nadu and Andhra Pradesh too have been trying to eye foreign companies. While Andhra Pradesh has been in touch with Korean companies- POSCO and Hyundai Steel, Tamil Nadu too has set up a committee of bureaucrats to get a hold of firms fleeing out of China amidst the worldwide COVID-19 outbreak.

In North India, the two fierce competitors who want to grab a lion’s share in companies exiting China are however Uttar Pradesh and Haryana. The neighbouring states, both of whom, share borders with the National Capital are desirous to become new manufacturing hubs, powered by factories and manufacturing plants established by companies from across the world.

While Uttar Pradesh has been traditionally clubbed with the state of Bihar in terms of backwardness and lack of industrialisation, the state has been making attempts to get rid of the ‘backward’ tag with a massive industrialisation push by the incumbent Chief Minister Yogi Adityanath.

Upcoming Defence Industrial Corridor, Expressways, Jewar International Airport and Global Investors’ Summits are all parts of Yogi government’s ambitions to develop the state into an industrial powerhouse.

The state faces stern competition from the state of Haryana- one of the most industrialised and prosperous states in the country that does enjoy a certain advantage over Uttar Pradesh. Haryana which shares borders with Delhi on three sides happens to be a leading producer across a range of industrial products.

Haryana has a huge automotive market and produces two-thirds of passenger cars, 50 per cent of tractors and 60 per cent of motor bikes, apart from producing half of the refrigerators in the country.

The main industrial centres of Haryana and Uttar Pradesh are Gurugram and Noida respectively. While there are 28 Special Economic Zones (SEZs) in Gurugram, there are 21 notified SEZs in Noida and Greater Noida. Also going in favour of Haryana is the Faridabad district which is also home to large scale companies such as Orient fans, JCB India Ltd., Whirlpool, Yamaha Motor India Pvt. Ltd., etc.

Now that an opportunity has certainly come their way owing a massive exodus of companies in China, all states, including Haryana and Uttar Pradesh, have realised that they cannot miss the bus at this time.

States that capitalise upon this opportunity will power their way to rampant industrialisation and unprecedented growth and this is why it becomes major prestige issue. Missing this opportunity is an economic as well as a political disaster, and in that context Haryana and Uttar Pradesh both seem to be competing very closely to grab a major share of manufacturing firms leaving China.

Tags: ChinaHaryanaUttar Pradesh
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