Govt prepares a list of 10 mega clusters across nine states to attract global companies
The idea is to market Brand India at a time when the country’s FDI inflows fell 1.44% .
India has drawn up a list of ten mega clusters across nine states as the most attractive destinations for companies to set shop based on sectoral requirements and tax incentives to promote the country as an alternative business continuity plan destination amid the ongoing Covid-19 pandemic.
While the Noida-Greater Noida cluster is an electronics hub, Hyderabad is the largest export hub for pharma and vaccine, as per the analysis and these “have the potential of developing into the most fertile grounds for manufacturing rapid economic activity in the country.”
Ahmedabad, Vadodara (Bharuch-Ankleshwar Cluster), Mumbai-Aurangabad, Pune, Bengaluru, Hyderabad, Chennai and Tirupati-Nellore are the other most attractive clusters for investors. This is part of the exercise that Invest India, the country’s national Investment Promotion and Facilitation Agency under the commerce and industry ministry, with professional services firm JLL undertook to create a guide for potential investors on how quickly they can invest in the country with low capex models to operate here. It highlighted India’s three distinct advantages-the recent reduction of corporate taxes for setting up of new industries, being host to Global In-house Centres and Global Centre of Excellence (GCo-Es) for several manufacturing companies, and the added attraction of a large domestic market.
The idea is to market Brand India at a time when the country’s FDI inflows fell 1.44% on year to $10.67 billion in October-December FY20. These 10 mega clusters cover about a hundred popular industrial parks and house over 600 Indian and foreign multinational companies.
EASE OF DOING BUSINESS, COST SAVING
“India currently has an inventory of around 22 million square feet of ready built industrial space in eight top cities ready to be occupied in six to eight weeks,” Invest India and JLL said in their report on great places for manufacturing in India.
Highlighting higher capex savings while operating in India, they said that rented factories for lease tenure of nine years and above can reduce the spend on land and building significantly, bringing down capital investment in the short term.
May 16, 2020