1,000 foreign firms thinking to production in India

1,000 foreign firms thinking to production in India, 300 actively pursue plan as 'Exit China' mantra grows.

India as an alternate manufacturing hub and have taken up their proposals across various levels of the government.

- 1,000 foreign firms are planning to shift manufacturing to India.

- 300 actively pursuing production plans in mobiles,electronics,medical devices, textiles.

- Proposals are at various levels central government departments, Indian missions abroad, state industry departments Government is making all-out attempt to hard-sell India as a manufacturing hub.

- Cost difference between India and South East Asia is 10-12 per cent.

- For new manufacturers,the applicable tax was brought down to 17 per cent making it the lowest in South East Asia.

- Reduced tax rate and the roll-out of goods and services tax (GST), India attract foreign investment in the manufacturing sector.

- Japan has announced $2 billion financial aid for its companies to shift production out of China.

Now the world is rethinking its strategy of putting all eggs in one basket. A lot of interest is being shown by companies towards India.

India is generally considered an attractive destination because of its market size and also India being a possible hub for exports.

Private lender Yes Bank Ltd. returned to profitability

Private lender Yes Bank Ltd. returned to profitability.

Yes Bank Ltd. returned to profitability in the January-March quarter after the bank wrote-down additional tier-1 bonds as part of its planned reconstruction scheme,leading to a one-time gain.

Bank was placed under a moratorium by the Reserve Bank of India in March,due to this a new management and board was appointed as part of a rescue plan.

In the fourth quarter, Yes Bank reported a net profit Rs 2,628.6 crore.

AT-1 bonds amounting to Rs 8,415 crore were been fully written down permanently on March 14, 2020 and has been disclosed as an extraordinary item. Net of taxes, the extraordinary item stood at Rs 6,296 crore.

Net interest income rose 19.6 percent year-on-year to Rs 1,274 crore.

The bank continued to remain in breach of regulatory requrement. The bank’s core equity tier-1 or CET-1 ratio and Tier-1 ratio stood at 6.3 percent and 6.5 percent respectively.

The bank also breached the RBI’s statutory liquidity ratio and liquidity coverage ratio requirements, leading to a penalty of Rs 334 crore.

Yes Bank is now owned by a collective of India’s largest financial institutions and headed by a former State Bank of India executive.

Advantage offered by India to Foregin Companeis for Investment perspective

Advantage offered by India to Foregin Companeis for Investment perspective.

- More economical in terms of securing Land coampre to other Countries.

- Affordable skilled Labor comapre to other countries.

- Change in Labor Laws, which have proved a major stumbling back for Companies.

- Government is considering request from e commerce companies to postpone Tax on Digital Transactions (Which is Introduce in Budget 2020).

- India approved 130 billion rupee ($1.7billion) worth of Investments to make more Drugs and Medical Devices and boost local manufacturing of Drugs intermediates and active pharmaceutical ingredients to cut dependence on Import from China.

It's win win situation for both India and Companies Coming to India. India is offering and amending Laws for Investment of foregin companeis in India.
For foregin companeis, India is emerging markets it will be give a good return and boost the economy.