Although the global economy may face a severe downfall with the rise of the Coronavirus, India can look forward to a much brighter picture than expected. The world is looking forward to a recession worse than the one that took place in 2008. However, the Indian economy can look forward to a glimmer of hope for there is a positive outcome to look forward to from this pandemic. In fact, this may be unknown to many; however, India incurred a loss of more than 340 crores rupees per day during the first 21-day lockdown.
Presented here are several reasons to which India can look forward to post Covid-19:
Beginning of outsourcing:
With the global economic conditions depleting at an alarming rate, it means that first world countries may be looking for low-cost options. Therefore, if any company is looking for outsourcing at lower rates, then India can offer assistance in terms of finance, land, labour, non-core items as well as IT.
Increase in Supply:
With the world market slowly shifting away from China, it can prove to be beneficial for India as we may rise as a global supplier for raw materials as well as manufactured goods. In terms of fashion, home, lifestyle, and ceramic items, India can look forward to a surge in the economy.
As an alternative to China, several countries are currently planning to shift their manufacturing units to India. There is news that nearly 300 industries are at the moment discussing matters with the Indian government regarding production under various sectors such as textile, pharma, and electronics. The result of such a shift will lead to a rise in infrastructural development as well as an increase in employment opportunities.
A proposal has been made by the government this year to hike import duties on over 300 products, due to an increase in demand. The various sectors that will witness a resultant hike in acquisition costs include sectors such as furniture. This will allow local raw material producers to create a place for themselves in the market.
The world, till now, depended on China for various aspects such as assembly, manufacturing, and even resources. China had ruled the global market in terms of mobile accessories or electronics. However, the rise of the pandemic has caused the world to shift their market from China to other countries. This global shift will prove to be widely advantageous for the Indian Economy. India may even look forward to a rise in total GDP as well as employment rates.
Although for this shift to take place, India may have to cut short its own dependency on China for Active Pharmaceuticals Ingredients. There is the word on the street however, that the Indian government may be looking forward to shifting this sector to the local producers. This will impact India very positively as it will not only help India to become Independent but also rise in the global market as producers of Active Pharmaceutical Ingredients. Therefore, there may be many negative aspects, but India should look forward to the positive outcomes that will come from this Global Pandemic situation.