- The pandemic ravaged the economies of every country and its citizens in more than one way is stating the obvious. The once-in-a-century occurrence also highlighted how fragile humankind is when nature decides to assert its supremacy. As is its wont, humanity is also resilient in overcoming challenges by converting an adversarial situation into an opportunity. History is replete with many such instances where marvelous human qualities triumphs over seemingly insurmountable challenges time and again. During the initial days of the pandemic, the doomsayers were all over predicting catastrophic consequences for humanity.
PC: Sky Solutions Consultants
- We all know how we could muster enough resources to sail through the crises less scathed. Every adversity brings with it equal opportunity. The same was proved beyond doubt when the foreign businesses established elsewhere started moving out to overcome local challenges. We know how China was and is continuing to embrace harsher and blunt measures like lockdowns to counter Covid-19. Foreign companies were bound to feel the heat sooner than later due to an unsustainable business environment looking for new avenues to establish unhindered access to carry out business.
- Note that China is positioning itself as a superpower but with a notorious streak and a devil-may-care attitude antagonising several countries in the bargain. China’s brazen aggressiveness, intransigence, and laying claim to foreign territories are well documented. Some of the biggest tech behemoths are moving out of China in search of a peaceful environment. As reported, the iPhone maker Apple is accelerating plans to shift some of its production outside China. This can and should be the moment India takes a big bite of the Apple, literally. The company has reportedly told its suppliers to plan for assembling its products elsewhere in Asia, particularly India and Vietnam.
PC: Rajan Laad
- This comes after recent turmoil at one of Apple’s biggest plants in the Chinese city of Zhengzhou. Attracting the entirety or at the least, a substantial portion of this business to India must be a task the Union Government sets for itself. It will have a tremendous demonstration effect globally. Make no mistake, as the US decouples from China and other Western economies diversify away their economic linkages from Beijing, India becomes a possible beneficiary. This sentiment was also expressed at the recent Asia-Pacific Conference of German Business 2022 in Singapore where India and the Asea economies were seen as potential destinations for strategic outsourcing. However, India will have stiff competition.
- Note that before the pandemic hit, it was found that out of 56 companies that had relocated their production out of China between April 2018 and August 2019, only three went to India while 26 relocated to Vietnam. True, iPhones are currently assembled in India by Foxconn, Pegatron, and Wistron in Tamil Nadu and Karnataka. But these plants are nowhere nearly as big as Zhengzhou. It is here that the Union Government closely works with likely states, no matter which party is in office, where the Zhengzhou production can be relocated. Why only iPhones, many other big companies too should be pursued diligently by making our country an attractive destination for investors?
