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How India Is Important For International Market In Terms Of Business
With disruptions in China’s manufacturing and production operations and delayed delivery of goods as a result of the ongoing coronavirus outbreak, many global companies are seeking alternative destinations to diversify their supply chains.
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Many nations are holding China responsible for unabated spread of the pandemic and countries including Japan, US and EU have announced plans to exit from China since Covid-19 pandemic first came into light in November 2019 in Chinese city of Wuhan.
With disruptions in China’s manufacturing and production operations and delayed delivery of goods as a result of the ongoing coronavirus outbreak, many global companies are seeking alternative destinations to diversify their supply chains. With low labor costs, incentives and regulatory relaxations for manufacturing, and a reduced corporate tax rate, India has emerged as an alternative hub for global manufacturing.
India also offers lower operating costs, competitive infrastructure, special economic zones (SEZs) that offer duty free exports among other benefits, incentives to boost domestic manufacturing, and business-friendly policies. Plus, while China is engulfed in a trade war with the US, India has a comparatively good relationship with the US with both countries currently engaged in bilateral trade talks.If due support is provided by the government to the industry including MSMEs, which employs a large workforce across the value chain, reboot of business will become a reality and growth can certainly be achieved.
India’s expanding economy and robust middle class provide a lucrative market while its abundant skilled and semi-skilled labor add to the country’s ability to support bulk manufacturing, assembly, and processing.In addition to these advantages, India’s democratic fabric, with an emphasis on transparency and rules-based international order as well as readiness to meet its contractual commitments without resorting to weaponizing trade policies would pave way for fair trade.
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.