At a time, when all nations across the globe are blaming China for escalating the Covid-19 and in consequence of that many countries have started to shut down their business establishment in China. Such kind of development will undoubtedly unlock a huge opportunity for India to pitch before foreign investors to set up their manufacturing plant.
Meantime, the government needs to strengthen the ‘Make in India’ movement so that it can give eventful confidence to business leaders to relocate their business destination. If India can clutch these opportunities, then it will certainly be a major setback for the world’s second-largest economies.
To attract investors and business tycoons of the fast-growing companies, it is utmost important to improve country’s rank in the ease of doing business (EoDB) index, where India stands at 63 among 190 countries.
The World Bank’s EoDB index report is primarily based on six parameters namely- a) enforcing contracts, b) resolving insolvency, c) starting a business, d) registering property, e) paying taxes & f) trading across borders.
In the last published report, it is revealed that India has extremely done well in enforcing the contract and resolving insolvency parameters. However, there is still a long way to go in the rest of the parameters to take India’s rank to the top 50.
If we look at the rank of China in EoDB index, it stands at 31. China may move down in next EoDB index, to be published in October 2020 as most of the companies closing their unit looking at China’s role in misleading the world over novel coronavirus.
Moreover, India is also lagging behind to its Asian counterpart like- Singapore and Hong Kong that ranked second and third respectively. There are also necessities to study initiatives of the countries like New Zealand, which topped the index consecutively for three years i.e. from 2018 to 2020 to replicate some of their good practices that have been incorporated in their economy.
Meanwhile, there is a slew of positive development that happened in Foreign Direct Investment (FDI) sector during the lockdown 2.0. The US-based Social Media & Technology Company-Facebook Inc. has announced an investment of INR 43, 574 crore in Indian conglomerate – Jio Platforms Limited, a unit of Reliance Industries Limited, which is considered as biggest FDI in India’s technology sector.
Secondly, as many as 300 companies are in talks with the central government at various levels to establish their manufacturing plant in India. These firms are basically producer of electronic items, medical equipment, textile and synthetic products.
The list includes companies like- Johnson & Johnson, Wistron etc. Hence, the government must attempt all-out-effort to keep these proposals as all these companies are looking at India as an alternative to run their business after exiting from China.
Thirdly, Amazon Inc. is mulling on to close down its Chinese marketplace business to strategically focus on India. The Washington based e-commerce giant is continuously mounting its investment since entered into India in 2013.
It is worthwhile to mention here that, foreign investment is crucial in this hour of economic fallout as it will also open up a window for a generation of some kind of employment opportunity in the post-lockdown period.
Furthermore, to draw the overseas conglomerate attention, we must improve infrastructures like road and air connectivity, power supply, produce more skilled labour etc. along with the induction of feasible incentive schemes.
In the meantime, keeping in mind the economic prospect in the midst of Covid-19 pandemic in the business sectors, the Minister for MSME, Road Transport and Highways interacted with Indian students leaving in foreign countries through video conferencing for seeking their views on business opportunities that are arising due to the developing hatred for China across the globe.
In the conference, the minister revealed that the Finance Ministry and Reserve Bank of India have been working on various policies to revive the economy post-Covid-19.
It may be mentioned here that, Japan has declared an economic package of $2 billion for its companies exiting China and urged to set their business in Japan.
The need of the hour is to take such kind of audacious decision to re-booting the country’s economy at this hour of economic slowdown, as India is expected lose over Rs 32,000 crore each day during the lockdown. Therefore, the time has come to alter focus to the economy in due consultation with economic experts amid Covid-19 pandemic outbreak.
The views expressed by the author are personal and may not in any way represent those of TIME8.
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