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Can India Replace China as a Global Factory After COVID - 19?


By Raghav Sharma 
The COVID - 19, popularly known as novel coronavirus was first detected in Wuhan (China) but as we all know diseases know no boundaries, so within a short span of time it has spread worldwide. With COVID - 19 infecting millions across the world, China is facing an unprecedented global backlash that could undermine its reign as the choice of the world’s factory. This backlash is seen from Australia to The United States of America via Europe. Several industries have realised the drawbacks of being excessively dependent on a single country, and are looking to expand the geographical spread of their manufacturing facilities.
India has seen an opportunity and is keen to capitalise in the current situation. Moreover, India has shown its potential in the manufacturing sector time and again. There was a time when no personal protection equipment (PPE) suits were made in India and now 4.5 lakh personal protection equipment (PPE) suits are manufactured daily.
China’s weakened global position is a “blessing in disguise” for India to attract more investment, honourable transport minister Mr Nitin Gadkari said in a recent interview. Reports have indicated that a large number of corporations have already initiated talks with Indian authorities seeking to pursue production plans in India in sectors such as- electronics, medical devices and textile. Government has proposed to provide several facilities to the giant corporations of The United States of America, including FedEx, UPS, Cisco, Adobe, Lockheed Martin, and others to shift factories and offices to Uttar Pradesh. In recent weeks several states of India have begun making moves to address concerns around the ease of doing business. Moreover, India is also planning to ready a pool of land twice the size of Luxembourg to offer to companies that want to manufacture out of China.
The Indian Government putting together land bank is a step in the right direction. But large companies are unlikely to move their operations just because the land is available. In a business environment where global balance sheets are fractured, relocating entire supply chain is easier said than done. Moreover, Indonesia, Vietnam, Singapore and Cambodia apart from India are prominent options that global companies are considering.
In order to lure these foreign companies, India would have to focus on creating a world-class ecosystem that is favourable to global manufacturing so that once COVID - 19 crisis blows off, international organizations can look at us as a trusted supply chain partner. Focus needs to be laid on skill enhancement of workforce and development of new innovative solutions. If India can create a favourable ecosystem with a cluster of buyers, sellers, technology, and skilled labour then it has a chance to become the next global manufacturing hub.

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Comments

  1. Dheeraj Verma19/6/20 10:52 AM

    Informative 💪💯

    ReplyDelete
  2. Rishabh Arora19/6/20 12:48 PM

    Probably in the long run India can Replace China as a global factory. But surely we ll face numerous obstacles in that period.

    ReplyDelete
  3. Sahil Yadav19/6/20 1:41 PM

    This will really help in solving employment problems and will surely give a boost to our economy.

    ReplyDelete
  4. Unknown19/6/20 2:12 PM

    Really informative ✔️

    ReplyDelete
  5. Unknown19/6/20 2:49 PM

    This pandemic has already made countries against China and most probably in the future dependency of countries on Chinese products will reduce, making it no longer the powerful and dominant country. So, China can easily be replaced in the long run if India becomes self dependent.

    ReplyDelete
    Replies
    1. MANINI19/6/20 2:52 PM

      This pandemic has already made countries against China and most probably in the future dependency of countries on Chinese products will reduce, making it no longer the powerful and dominant country. So, China can easily be replaced in the long run if India becomes self dependent.

      REPLY

      Delete
  6. Anonymous19/6/20 7:12 PM

    Great content

    Drop a message for content writing intership

    8448540266

    ReplyDelete

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