Rajasthan eyes a slice of global investments moving out of China

JAIPUR: Sensing an opportunity with its vast expanses of semi-fertile to barren land, proximity to NCR and the soon to be completed dedicated high-speed freight corridor, the Rajasthan government is looking to have its slice of share if the US, Japanese, and South Korean companies decide to move out of China.
The state government has recently written to the ambassadors of these countries seeking investments and offering ‘best possible assistance and concessions and facilities’ while showcasing the Japanese zone at Neemrana as a successful model for country-specific dedicated industrial cluster.
In the letter to the US ambassador in India, state chief secretary D B Gupta said, “While we deal with the pandemic, we hope to look ahead, to the post-corona macro environment where new alignments for manufacturing and software hubs are likely to emerge worldwide, and we anticipate a renewed potential for US companies to diversify to other countries, with India being a potential location.”
He also said Rajasthan has been a preferred location for marquee foreign investors like Honda Cars, Honda Motorcycle & Scooter, Saint Gobain, JCB, Cargill, Lafarge, Bosch, Daikin, Ashok Leyland, amongst others.
Drawing on the past experience of the two Japanese zones in Neemrana and Ghilot where 45 companies are operating, the state government offered land anywhere in the state. Japan has recently announced to relocate investments of $3 billion from China, but said much of it will be deployed in their country.
In the letter to the Japanese ambassador, additional chief secretary Subodh Agarwal said, “With long association, the functionaries in the Rajasthan government are also very well aware of the requirements and concerns of the Japanese investors. The manpower in and around Japanese companies is also familiar of the Japanese production standards.”
An experiment with South Korea like the Japanese has not fructified in the past despite the state government reserving a dedicated area in Ghilot. But given the changes in current geopolitical equations, especially in relation to China, the state government is willing to revive the proposal for Korean companies.
“Having earlier demonstrated our commitment by developing a dedicated zone for South Korean companies, we wish to convey the renewed keenness of the government of Rajasthan to promote Korean investments in Rajasthan,” said Agarwal in the letter.
He said the state government is willing to develop a dedicated Korean Investment Zone for the Korean companies at a suitable location and extend the best possible assistance and concessions and facilities to Korean investors in Rajasthan.
“We request your consideration to the proposal to put in motion the renewed dialogue between the state government of Rajasthan through RIICO and Republic of Korea through KOTRA to facilitate Korean investment in Rajasthan,” Agarwal said in the letter.
The state government is also planning to constitute a task force which is likely to be announced soon for attracting global companies looking to move out of China.