Here’s What Assam Is Doing To Attract Companies Exiting China

Assam has started serious efforts to attract industries exiting China.

The northeastern state is finalising a multi-pronged strategy that it will roll out soon to get Japanese, Korean and American companies which are now looking for bases in Asia to shift to.

Assam industries minister Chandra Mohan Patowary said that the state has engaged global consultancy firm Ernst & Young to suggest a policy framework to attract industries that are planning to move out of China.

The state government has also formally requested the Union Government to consider Assam as one of the three states where bulk pharma parks are proposed to be set up.

The Union government has, recently, decided to set up three mega pharma parks in the country to reduce dependence on China for active pharmaceutical ingredients (API).

The current pandemic has exposed India’s overdependence on China for APIs, prompting the Union Government to boost API production.

Assam has specifically targeted the Japanese and has offered to set up an exclusive industrial township complete with the best of facilities and hospitality utilities for Japanese companies planning to shift out of China. The proposed township will cater to the needs of Japanese corporate executives, said Patowary.

“We have asked the Department of Promotion of Industry & Internal Trade (DPIIT), National Investment Promotion & Facilitation Agency, Japan External Trade Organization (JETRO), the US-India Business Council and the US Chamber of Commerce to give us opportunities to interact with companies which are planning to move away from China. We want to make a serious pitch to project Assam as an attractive investment destination to them,” said Patowary.

Assam enjoys many advantages, said Patowary.

“We have vast natural resources, a lot of land, good infrastructure, reliable connectivity and a good pool of trained manpower. We have a locational advantage as well since products made in Assam can be easily shipped to markets in South-East Asia, Bangladesh, Nepal, Bhutan and also western China. Assam has river ports and good rail, road and air connectivity,” said Patowary.

The Asian Highways that are nearing completion will connect Assam seamlessly to Bangladesh and South-East Asia through Myanmar. Sea ports of Bangladesh will get connected through waterways, roads and rail to Assam very soon, thus enabling quick access to those ports in Bangladesh (Chittagong, Payara and Mongla) for goods manufactured in Assam, the minister pointed out.

The state government has lined up a number of infrastructure projects to kickstart the economy post lockdown.

“We will pump in massive investments into building roads, bridges and other facilities that will enhance connectivity within the state. That will give a fillip to the state’s economy and also create assets that will enhance Assam’s potential as an attractive investment destination,” said Patowary.

The minister said that a lot of land for setting up industries is available in Assam. “There is plenty of water, and we are a power surplus state also. We are waiting for Ernst & Young to suggest the policy framework and as soon as we have that, we will finalise an appropriate policy to attract foreign investments. We are very serious about getting companies planning to move out of China to shift to Assam,” said Patowary.

Assam is the third state after Uttar Pradesh and Haryana to eye companies moving out of China.

Patowary said Assam is also keeping an eye on incentives offered by Vietnam, Cambodia, Indonesia, Malaysia and Thailand which are also planning to woo US, Korean and Japanese companies planning to exit China. “We will try to improve on the offers made by those countries and have a better policy than what they offer,” said the minister.