The recent outbreak of Coronavirus, which is also responsible for a pandemic, has been widely spreading in almost every part of the world. Globally more than 15 Million+ people are affected, and more than 600K people have died because of this deadly disease. Directly as well indirectly, Coronavirus is affecting the businesses across all the levels. Countries like the USA, Brazil, India, Russia, Germany, South Africa, and many other parts of the world are experiencing sluggish demand as well as the rapid rise in inflation.
Before this pandemic, until now, India was enjoying a remarkable position in South Asia’s economic growth success. But due to Coronavirus, 2 months of lockdown and restricti
ons on the import and export business are widely affected by the supply distortion.
Earlier in Q2, when China enabled restrictions, and the world was looking for an alternative, India could have gained its position; however, it failed. The ongoing Us-China trade war was benefited by nations like Indonesia, Thailand, and Malaysia. India is still one of the largest service-sector led county and hold the potential to achieve the spot as one of the fastest-growing economies backs 1990s. However, these economics are slightly changed today. But India has enough potential and capability to turn the table and make things favorable if certain measures are implemented properly.
US, Mexico, Australia, and many other countries out there want to cut off their trade with China. This where if India gives special attention to the domestic market and strengthens its capability on export, then without a doubt, India can become one of the largest manufacturing hub replacing China.
From smartphones, TV to electric goods, 70% of these materials are originated from China, and it comprises nearly 47% of the gross merchandise value of online electronic sales in India. Similarly, the Indian home appliance market holds 85,300 Crores market value, and Indian manufacturers are heavily reliant on China for these components.
The time has come that India should take one step forward towards domestic manufacturing to secure raw materials and make much needed global impact instead of relying on and outsourcing from China. If the Indian government makes some necessary changes with their existing policies, so there are chances of improvement in the overall SMB’s scenario and complete with Chinese products churning out the better invention.
Indian comes under the trade deficit country where the export is more than import. In the present scenario, the account deficit is at $1.4 Bin the Q3 of 2019/20 that was $17.7 B a year ago. The merchandise trade deficit has been narrowed to $34.6 B from $49.3B. Be it electronic, medical instruments, auto components, iron, steel, or pharmaceutical requirements, India is heavily dependent on Chinese imports.
Make in India is a very favorable initiative; however, still manufactures believes it’s really convenient to import and sell instead of producing the product from scratch in India. The government is trying its best to motivate the individuals so they can start manufacturing in their own country. By doing so with better quality, India will be able to export around the world. Because Chinese products are known for their inferior quality, and this is where India can easily make a reliable position around the world.
If the government spend more on rural areas to improve their life, then there are chances of driving up the consumption in demand that will in turn to boost the economy.
Make in India is so far one the best initiatives with the potential to boost the Indian economy for the betterment of all the reasons. Not only the export, but new employment opportunities can also be generated.
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