Post COVID-19 Opportunities for Indian Manufacturing
In recent months, rumors of possible economic conditions have taken center stage after the blockade was imposed in various parts of the world to curb the spread of the coronary virus. On the one hand, there is news of the emotional and economic backlash against China for the crime of the COVID-19 epidemic, and on the other hand, Chinese companies are aggressively moving towards the full purchase of European brands, such as Volvo and Hasselblad, part of the global medical supply chain for products that are crucial to all nations right now. China is back in business by engaging the virus through authoritative technology-driven surveillance. The fact is that the economies that effectively operate COVID 19 have an advantage over others in the post-COVID scenario. Said and done, the financial situation after COVID 2019 is unpredictable and confusing.

India has a ray of hope as global companies seek to develop alternative supply chains beyond China. One of the main areas of interest in the global customer base is the manufacture of electricity and electronics. India exports around $ 9 billion in electronic products annually, but its domestic market is estimated at $ 120 billion. This broad field includes the manufacture of electronic components in many areas, such as mobile, automotive, medical, consumer goods, and aerospace and defense. Companies like Teledyne, Amphenol, and Johnson & Johnson have shown interest in India, and the Indian government announced a manufacturing-related incentive plan (PLI) for the electronics sector in March to boost the sector.

Although things seem positive for India in this field, the situation is more complicated than it seems at first. The current crisis has shown weaknesses in the Indian manufacturing sector. China is the largest importer in India and more than 14% of total imports ($ 68 billion in 2017-18). There is a need to develop a complete ecosystem for the production of these components. With design and development support, raw materials, critical specialty processes and production, the ecosystem can offer customers a complete solution.

Investing in ecosystem development and manufacturing is a time consuming exercise. It will take many years to develop an alternative supply chain and change production. Success factors include the ability to meet cost expectations and quality standards for Indian suppliers, increase production, government policies and plans, and reduce the learning curve.
If India has a good infrastructure and ecosystem in the field of mobile manufacturing and consumer electronics, there is an opportunity to build strength in the medical, automotive, aerospace and defense sectors.

In addition to electronic production, there are also some positive signs in the textile and chemical sector. Viewing these business opportunities more aggressively takes time. If the Center and the State prioritize the current situation of COVID 2019, they should also look at the post-COVID19 scenario of the economic agenda and do everything possible to attract foreign investment while strategically working to create an atmosphere of cooperation and cooperation between organizations. .

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