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India to benefit from US-China trade dispute

India to benefit from US-China trade dispute

While the world’s two biggest economies are involved in the long-lasting trade dispute, other countries  do not miss out a chance to improve their economic situation. Thus, India is quickly removing existing administrative barriers in order to encourage American and other foreign companies to set up their factories in the country. New Delhi authorities are considering to offer incentives to 324 companies, including Tesla and Glaxo. The government proposes to provide to these companies such benefits as the right to use the land to set up their factories and access to all necessary infrastructure. It seems that the government of Narendra Modi is trying to reach the target of a $5-trillion GDP by 2025. Sonal Varma, the expert on Indian and Asian markets, comments on this incentive, “We observed that in the first stage of relocation manufacturers largely preferred Vietnam. However, I believe that India still has all the chances to enter the competition for foreign companies.”  In addition, according to Varma, India has a “unique advantage”, a huge domestic market which will certainly attract large investments. Over the past two years, the country has achieved significant economic progress, jumping by 37 places in the World Bank’s Ease of Doing Business ranking. The trade war between the US and China is a great opportunity for India to strengthen its economy.

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