Prime Minister Narendra Modi interacted with all the Chief Ministers of the state on Monday to discuss the COVID-19 situation in the country and to discuss the further steps after the lockdown ends on the 3rd of May.
According to the sources, the Prime Minister is said to have advised the states to explore the possibility of attracting investments for the companies that would likely exit China post the COVID-19 outbreak in Wuhan. This is in a view to attracting the companies to India that had China as its main ground till now.
The Prime Minister is said to have urged the states to be ready with investments as he feels India has an opportunity with huge manpower and the infrastructure. The Prime Minister, reportedly, feels India has the potential to be the alternative destination for companies that are on the verge of exiting China. A source close the Prime Minister said,
“As you all know, several industries will be exploring options beyond China after the coronavirus crisis. We all should work on a comprehensive plan for the possibility of investments in the states.”
PM wants India to be self-reliant
The Prime Minister had recently remarked that India should become ‘self-reliant’ that would make it stronger to cope with the challenges like COVID-19. The government of India has been contemplating measures to look past China in its economic policies. Even though India has refrained from using words like ‘Wuhan Virus’ and ‘Chinese Virus’ like Donald Trump, it has significantly opposed the communist-ruled country by placing a temporary ban on investments from China.
The government recently amended its Foreign Direct Investment policy by putting a blanket ban on investments from the countries that share borders with India. The move is seen to bring geopolitical and economic ramifications for the country.
Most of the foreign direct are under the automatic route i.e. the companies that receive the investment only notifies the government when the investment is made. The latest move signals an indication that the Indian government is safeguarding its companies from China which can acquire them given the vulnerabilities in the ongoing economic crisis due to COVID-19. With this move, India joins with other countries in condemning China’s role in the outburst of a global pandemic that has not only caused a health emergency but also an economic emergency. Although India has not been vocal about its condemnation, this move signals it.
Source: The Times of India