The ongoing US-China trade war has further accelerated the pace of efforts at relocation or towards finding a diverse location,” stated the letter, which calls for setting up an inter-ministerial panel to look at ways to harness India’s potential to become a low-cost manufacturing hub for high-end IT products.The talks with American companies are in initial stages and delicately poised amid growing Sino-US tensions, ET has learnt. According to the National Policy on Electronics, India aims to export $110 billion worth of mobile phones out of the country’s total estimated production of $190 billion by 2025. A case in example is Samsung, which started operating from Vietnam a few years ago and today contributes significantly to that country’s gross domestic product. But these markets in SE Asia are small, and India’s attraction is its huge market and growing middle class. This is India’s chance in history,” said one of the sources mentioned earlier.“Investment shifting by China-based American companies will not only help getting much needed FDI into India but also will give boost toward employment generation and acquisituon of new technologies,” Bipul Chatterjee, Executive Director, CUTS International (noted Indian think tank that focuses on trade facilitation and connectivity matters) told ET.

Source: Economic Times July 04, 2019 01:16 UTC