Geo-economic Shift Post Pandemic Can Favour India, But It Needs To Work Its Way Up
As the world, including India, fights coronavirus, talks have already begun about the post COVID-19 situation, which is anticipated to bring both challenges and opportunities.
The pandemic will not only have geopolitical consequences, but will also bring geo-economic shifts, or as I would call, bring a balance to a system which is tilted towards one country, i.e. China.
Over the last two decades, almost every kind of manufacturing firm has set up its plants in China because of the country’s aggressive FDI policies; but many now see this as a part of a larger global conspiracy. By attracting manufacturing, China has been reaping the benefits of R&D being done in other countries without even spending on it.
These ill-intended trade and investment practices were being pursued full throttle till the time world woke up to the consequences of the COVID-19 pandemic.
China has a trade surplus with almost every country in the world, but it has now transformed into trust deficit. Now, every country wants to pull out their investment, especially in the manufacturing sector, from China, and look for opportunities elsewhere.
India has been one of the top choices for such investments especially after Prime Minister Narendra Modi took charge of the government and started his comprehensive global outreach. With PM Modi's 'Make in India' campaign and the increase in Ease of Doing Business rankings, India became a shining spot for investors across the globe. This was followed by introducing the Goods and Services Tax (GST) regime that has boosted the confidence of international investors. But we still need to do more to capitalize the potential of our country to be a dream destination for investors. Now there is a need for a multilateral approach for India to emerge as the most preferred country in the present geo-political and geo-economic context.