Coronavirus originated in Wuhan, China in December 2019. Since then many businesses have experienced the ripple effect worldwide. Markets were closed and manufacturing was put to a grinding halt, disrupting several supply chains. This resulted in countries making some important changes in their decades-old supply chain networks.
The coronavirus disease is taking the already plunging Indian economy down. With businesses being shut and people being fired, a huge wave of recession is predicted. But to look at the brighter side, India has an enormous scope of benefitting from the situation.
India plans to grab on the opportunity of becoming the world exporter as major economies plan to shift its operations from China. Commerce and industry minister Piyush Goyal has launched a set of initiatives geared towards this momentous motive. Discussions with bankers, ministers, law firms, etc have already taken a front foot. Due to 41 days lockdown, the ministry couldn’t engage in productive discussions with potential investors. But, Prime Minister Narendra Modi recently waved a green signal for the same.
The country is basically focusing on reducing imports and accelerating exports. As India has huge competencies in textiles and auto parts industry, it seeks to scale them up by inviting FDI in the sector. On the other hand, it aims to reduce imports of items that the country relies heavily on, by promoting their domestic production. A list of the “champion sector” has also been prepared regarding the same. Furthermore, the ministry also aims to improve the condition of MSME’s as they form a huge part of the Indian market.
However, building the country’s brand in the eyes of the global inventors remains a challenge. Therefore, the ministry has suggested forming groups to brainstorm and suggest ideas for the achievement of this goal once the pandemic is over.
As per the present day, a thousand global companies are deciding to make India their prime destination. Moreover, 300 have already started building up their units in India and negotiating with the Indian government. To top it all, Japan has already announced a mega package of $2 billion for its companies to shift to the country which were previously in China. South Korea is too considering to enter the Indian market.