INDIA TO LURE US FIRMS OUT OF CHINA

India is seeking to lure US businesses to relocate from China. The government in April reached out to over 1,000 firms in the US to offer incentives to move into the country.

NEWDELHI:India is seeking to lure US businesses, including medical devices giant Abbott Laboratories, to relocate from China as the Trump’s administration steps up efforts to blame Beijing for its role in the coronavirus pandemic.

The government in April reached out to more than 1,000 companies in the US and through overseas missions to offer incentives for manufacturers seeking to move out of China, according to Indian officials who asked not to be identified, citing rules on speaking with the media. India is prioritising medical equipment suppliers, food processing units, textiles, leather and auto part makers among more than 550 products covered in the discussions, they said.

Trump’s move to blame China for its handling of the covid-19 outbreak, which has killed more than a quarter-million people worldwide, is expected to worsen global trade ties as companies and governments move resources out of the world’s second-largest economy to diversify supply chains. Japan has earmarked $2.2 billion to help shift factories from its neighbour, while EU members plan to cut dependence on Chinese suppliers.

India expects to win over US companies involved in healthcare products and devices, and is in talks with Medtronic Plc and Abbott Laboratories on relocating their units to the country, an official said. Medtronic and Abbott didn’t respond to emails.