India is reportedly encouraging foreign companies such as Apple, Foxconn, Wistron Corp and Taiwan-based Pegatron Corp to shift their business from China to India, according to Reuters. Seven officials had met on August 14 and discussed a “list of target companies” that India would encourage to move out of China.
The ongoing trade war between both countries has now led to higher tariffs on goods, per the report. This is disrupting global supply chains and is prompting the companies to explore other “investment avenues to escape higher tariffs”. The central and state governments are planning to meet the companies between August 26 and September 5 to discuss investment zones for them to operate in. A “complete package” outlining market factors and incentives will be presented to potential investors. Apart from this, the Centre will also provide a list of foreign companies with its consulates who will be responsible for arranging meetings with the companies at their headquarters.
According to a MoneyControl report, both US and China signaled that they may resume trade talks as they discussed about the “next round of in-person negotiations in September ahead of a looming deadline for additional U.S. tariffs”.
Indian government met local delegates of automakers
The trade tensions between US and China has also affected the global automotive supply chains and the big automakers. According to Reuters, Indian officials had met the delegates of several automakers including Volkswagen, Hyundai Motor Co and Honda Motor Co and discussed if the companies would like to shift some of its supply chain operations from China to India.
The ongoing dispute has led Apple to face challenges as it faces a levy of 15% by the U.S. administration on China-made products such as smartwatches and iPhones.