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COVID-19 Has Put India In A Pole Position
The new global leadership role is up for the taking and the countries those who sniff the emerging requirements are bound to lead the race.
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Every major global disruption brings with it challenges and opportunities. The real test of winners is their ability to intercept and metamorphose the crisis into opportunity. The entire world is under the hammer right now and the dent is so big that it will take a considerable amount of time to recover for most of the countries. The current rundown is such that there is an anti China sentiment floating worldwide which may lead to significant economic and diplomatic implications for China resulting in top companies shifting their base, reduction of trade, and trust deficit to name a few.
Covid-19 has put a brake on the major economies of the world and has also caused huge loss of human lives. The world doesn’t look the same as it was a few months back and in all likelihood there will be new norms that may prevail as normal. The world leaders are upset with China and the veering of capital away from it looks inevitable which puts India in a pole position provided there is a proactive and friendly policy framework available for investors. India must consider this pandemic as an opportunity for developing the infrastructure and bureaucratic capabilities that can project it as the forerunner of restoration and growth efforts post covid19.
The Covid has triggered the companies to look for a country with similar demographic characteristics and India gives them the right package. With a huge population base India not only offers opportunities to manufacture but also comes out to be a significant domestic market too. One of the largest economies of the world with a voluminous work force makes it the indefectible alternative in terms of magnitude of markets. The numbers corroborate the statement with the average age of 27 and around 900 million people in the category of working age; India is a young and ambitious economy. These are some of the crucial factors for bewitching the manufacturing companies which china has been doing since long. Also, bounteous resources allow India to captivate both market oriented and resource oriented firms.
The idea of becoming the most preferred destination for global investment is only possible if India provides these companies a ready playfield to come and set up their base. This requires creating a conducive and favorable business environment, policy reforms, better infrastructure, political stability, and quick approvals. The reforms such as rationalizing land acquisition and labor laws both at the centre and state level, logistical and trade facilitation to reduce the transaction costs are some of the catalysts for FDI influx.
The ongoing situation arriving out of convoluting international diplomatic relations between the nations exhorts India to revamp SEZ and EPZ policy framework for improved performance. FDI not only stimulates capital formation but it also acts as an apparatus for technological advancement, skills development, creating more jobs, boosting exports, and the improvement of overall competitiveness of the economy.
The government focus of improving the relations with the international counterparts and strengthening its diplomatic position paints a bright picture and it would be on the bureaucracy to support the idea of Atmanirbhar Bharat and work in sync with the global requirements to give India a head start post pandemic.
The COVID-19 pandemic is among the rare incidents where the human race is facing an existential threat and the social and economic ballgames have witnessed mutation spawning uncertainties and the world is marching towards finding the congruous rejoinders to stay afloat. The history suggests us that the crisis brings era-defining innovation and displaces the leadership positions. The new global leadership role is up for the taking and the countries those who sniff the emerging requirements are bound to lead the race.
Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.