With India anticipating a shift of industries out of China in the post-COVID-19 world, Karnataka on Monday constituted a special investment promotion task force to attract investments from “disenchanted multi-national companies”.
The 15-member task force, headed by the Chief Secretary, will also have one representative each from companies from Japan, Singapore, the U.S., South Korea, Taiwan, France, and Germany that are currently operating in the State.
The task force will identify sectors in which Karnataka can attract investments owing to relocation from other countries post COVID-19 and will formulate special incentive packages and facilitation to attract investments. Furthermore, it will also identify key infrastructure projects, including dedicated industrial townships, that needs to be undertaken or expedited and will identify the measures to fast-track clearances to promote these investments. It will also recommend brand-building measures for the State.
A note on the constitution of the task force said there is now a pushback against China from several countries and China may not be able to retain its position as the world’s largest factory in the post COVID-19 world order. “The Japanese government is paying Japanese companies to shutter their manufacturing plants in China. American companies are also planning shutdown. So are other countries such as South Korea, Taiwan, and Singapore. They are planning to shut down their facilities in China and see India as an alternative manufacturing hub,” it said.
The task force will also have representatives from Indo-French, Indo-American, and Indo-German chambers of commerce.
