Amid the COVID-19 outbreak, India has a chance to turn the second anchor nation for manufacturing and production after China, as the world looks to alternatives, leading economists said at the Economic Times Global Business Summit last week in New Delhi. “There’s always an opportunity… you have to seize it,” said Rajiv Kumar, vice chairman of NITI Aayog.
India does not need to wait for companies to undertake the ‘one plus one’ model as it can increase its share of global trade from 3-4 per cent, far lower than China’s 13-14 per cent, Kumar said.
A large number of engineering exports from India can fill up the market vacated by China, Deepak Sood, secretary general of the Associated Chambers of Commerce and Industry of India (ASSOCHAM), was quoted as saying at the meet by Indian media reports.
While Indian traders are having supply challenges as they depend on the neighbouring country for raw materials to export electronics, pharmaceuticals, speciality chemicals and automobile segments, there are multiple segments, like leather, leather goods, agriculture and carpets, which have increased opportunities for Indian exporters, ASSOCHAM feels. The de-risking of supply chains originating from China, which had started following heightened concerns of a US-China trade war, is likely to be accelerated on the back of concerns over the recent outbreak of coronavirus, TV Narendran, chief executive officer and managing director of Tata Steel, said on the sidelines of a recent conference in Kolkata organised by the Confederation of Indian Industry Eastern Region.
