Global uncertainty is India’s opportunity

As has been said for some time, India’s time to shine has come. The opportunity is there. India just needs to grab it.

Globalisation has seen China become the world’s factory as it ramped up its manufacturing, invested in infrastructure and liberalised enough to allow world to tap its capabilities as a hub for large scale manufacturing. What China also did successfully, was to orient its industry and production from traditional to modern industries / sectors.

There are now multiple factors in play that will challenge China’s dominance in manufacturing and inspire the world to look elsewhere to de-risk their supply chain. Some of these factors are well known, such as trade wars between US and China, geo-political issues such as ongoing Russia Ukraine war, China’s intention and posture regarding Taiwan as well as China’s ageing population due to decade’s long one-child policy.

Now, in every crisis is an opportunity. Owning to the above outlined issues, importers and buyers across the globe are looking for alternatives to China for their manufacturing and sourcing. Some of the contenders include Vietnam, Cambodia, Bangladesh, Indonesia and India.

This is India’s opportunity to shine and India should grab it with both hands. From a labour force perspective, India is the second largest country in the world (in terms of population), behind China and has a large pool of young vibrant labour force. India has a stable democratically elected government, which has a declared objective to “Make in India” and increase Indian Exports. The government has launched various scheme such as PLI (Production Linked Incentive) and others to promote exports. With dominance in service export market, India now has the opportunity to dominate in product export and become the factory of choice of the world.

There are certainly many challenges that India would need to overcome, however that is a topic for another blog post, however till then, let us imbibe the opportunity to be grabbed!!