Multinational companies are now aggressively firming up plans to expand their operations in India amid rising global challenges. Even as China opened up its economy, many companies are looking at a China plus strategy amid rising tension between Washington and Beijing.

According to a report published by Nikkei Asia, India’s large consumer base, labour pool, youthful demographics, highly skilled professionals along with steady economic growth and rising incomes will drive the new wave of investments.

India which released its GDP growth figures yesterday projected an economic growth rate of 7 per cent this financial year. China recorded a growth rate of 3 per cent in 2022.

India, with an eye on the $5 trillion economy, is laying the red carpet for foreign investors. Sources said that nodal ministries, state governments and authorities dealing with investments have been advised to take all necessary measures to “handhold” foreign investors.

The Aatmanirbhar Bharat plank announced by Prime Minister Narendra Modi in 2020 is now being pitched as “Make in India for the World ”.

Multinational giants including Ericsson, Foxconn Technology Group, LG, Google, Samsung Electronics BMW, BYD, Hyundai Motor, Kia, Mitsubishi Motors are among those that have already announced their interest in expanding business in India.

However, the report also said that worries about authorities appearing to favour domestic companies over foreign ones “and a seemingly less predictable regulatory environment” are issues which need to be addressed by the Indian authorities.

Also read: Foxconn’s top boss meets PM Modi, group set to ramp up operations in India