India's response to COVID 19: Have we converted the challenges

into opportunities

Amidst this Global Pandemic, where many countries have witnessed devastating
economic & health crisis due to the virus, India has emerged as an opportunistic and
turned the crisis into opportunities to effectively fight the problem. The crisis has come
with many oppositions for India.

Before the coronavirus, India used to import 100% of PPE kits from various countries,
and there were negligible amounts of N-95 masks produced. Today, India is making
almost 2 lakh PPE kits and masks and looking forward to export. India has helped 97
countries by proactively exporting HCQS tablets and has sent teams of doctors to
countries like UAE (88 doctors), which has created excellent relations with these countries
across the globe.

India seeks a prodigious opportunity in terms of foreign direct investment (FDI) as

corporations in China are looking to shift their base because of the cold war between the
US and China. The US has forced massive tariffs on Chinese goods, and another cause is
the labor costs are increasing in China. The crisis has also raised India's global credibility
as the world recognizes the inspiring leadership of Prime Minister Narendra Modi,
making India a natural destination for international businesses that are looking to build
more resilient supply chains and move elsewhere from being too China-centric. Many
global players (in industries ranging from pharmaceuticals to auto parts and clothing)
are now actively exploring India's locations, such as Ikea, Cisco, and Apple. The Indian
government is in talks with almost 200 US-based companies to shift their factories to
India and a total of 1000 firms from across the globe. The central government has asked
all states and make necessary arrangements to discover land which can be used by these
companies. The benefits will be on the lines of those given to the manufacturing of
electronic and medical devices. These may comprise production-linked incentives such
as capital expenditure benefits. India's current electronic export is around $9 billion,
while domestic consumption is about $120 billion.

Even after all these efforts there is huge room for improvement, we could have done
really better. I would like to exhibit some of the points I gathered after a brief research
on the topic. Owing to the pandemic, India could revive its artisan traditions, handicrafts,
and also rural agro-industries. This is the time for a renewed focus on the Make in India
initiative. This may not generate jobs for everyone, but it will bring hope and long-term
gain in rural India. India's pharmaceutical industry has also witnessed a boost in demand
and is exporting to many countries, including the US, UK, Germany, etc.

In this world of globalization where economic globalization has far outpaced political
globalisation, India needs to be more self reliant & this objective is being considered by
PM Modi also. He repeatedly used the words 'swadeshi' & 'aatma nirbar' in his speech to
encourage us to be more self-reliant from now. This is the time when India needs to
form an economy having a better balance between globalization and self-reliance.
India needs to invest in infrastructure. Some reforms are necessary for labor laws,
reducing business interference. India has a history of taking reform during the periods of
crisis, e.g., during the 1991-92 crisis. If India wishes these Chinese companies to come to
India, then the above stated reforms and infrastructure investments are mandatory.