India needs to boost manufacturing base to attract global cos, says NRI entrepreneur

India needs to strengthen its manufacturing base as well as undertake more reforms to attract investments from companies globally, according to NRI businessman and chief of FI Investment Group Frank Islam.

"If US companies decide to leave China, the most important factor that will determine the location where they will relocate to will be the business climate. Businesses make decisions based on profit and loss. While India is sure to get some investment, there will be a number of other countries that will also be vying for the US business," Islam told PTI on Thursday.

In the wake of the coronavirus pandemic, there are reports that some global companies might shift their manufacturing activities from China. Chinese city of Wuhan was the epicentre of coronavirus infections before it spread to other parts of the world.

Noting that no single country would be able to produce enough to replace the Chinese output, Islam said, "if there is a complete pullout of US companies from China, India .