Electric parts, chemicals, textiles, auto parts, almost everything is imported from China. This has made many countries like US, Germany, UK to become extremely import dependent on China for cheap imports.
The impact of coronavirus on the globe has woken up everyone. The ‘geopolitical risk’ and danger of being too dependent on one single country has finally been exposed to the world.
Once we get over the crisis, companies would look out for alternatives rather than being over -reliant on one nation.
I strongly believe India will stand to benefit from this.
China’s exports in 2019 were around US$ 2.4 trillion. In comparison, India’s exports accounts for just around 12% of that.
Even if 10% of MNCs currently dependent only on China, see India as a viable alternative, our exports can almost double. Imagine the amount of companies that will benefit, employment generation, investors creating wealth.
I was glad to read a recent article, where 200 US companies who were supposedly seeking to move their Manufacturing base from China to India.