20 JUL,2020 | MEDC
The post-Covid world is likely to see many global supply chains moving out of China and relocating elsewhere, mostly to nearby Asian countries. India needs to position itself strategically, to take advantage of this fluid situation. Our MSME sector has already suffered a lot due to global supply chain dislocation caused by the pandemic, and this is the time to take remedial action. India’s new vocal for local campaign is based on good intentions, but if some foreign collaboration is needed to boost our domestic infrastructure, we should not shy away from it. The Covid-19 crisis is also likely to lead to a reversal of globalization, and a fall in the power of the American dollar. Policy cooperation at international levels is becoming increasingly wobbly, and unless our economy becomes as self-reliant as possible, we risk staying at the mercy of progressively uncertain global forces. With a few strategic policy adjustments, India has the potential to become a key beneficiary of the global investment now exiting China.
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