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Coronavirus: Can India replace China as world's factory?

//With Covid-19 infecting millions across the world, China is facing an unprecedented global backlash that could destabilise its reign as the world's factory of choice.

//Its neighbour India has sensed an opportunity and is keen to make inroads to a space it hopes China will vacate sooner rather than later.

//China's weakened global position is a "blessing in disguise" for India to attract more investment

//"Covid will only accelerate the process of de-risking from China for many of these companies."

//The US-India Business Council (USIBC), a powerful lobby group that works to enhance investment flows between India and the US, also said that India has significantly stepped up its pitch.

//But things are still at an evaluation stage and decisions are unlikely to be made in a hurry.

//In an environment where global balance sheets are fractured, relocating entire supply chains is easier said than done.

//Another reason India might not be the obvious choice for global multinationals is because it isn't well integrated with major global supply chains.

//As things stand, Vietnam, Bangladesh, South Korea and Taiwan seem to be favourites to benefit from the backlash against China. The latter two at the "high-tech end of the spectrum" and Vietnam and Bangladesh at the lower end.

//Multinationals began moving production out of China into these countries nearly a decade ago due to rising labour and environmental costs. The slow exodus has only gathered pace as US-China trade tensions have increased in recent years.

//The time is ripe, say experts, for India to undertake broad-based structural reforms and use these sweeping geopolitical shifts to modify its trading relationship with the world.

Full article:BBC, (18-May)

#China #worldsfactory #India #supplychain #Coronavirus

https://www.bbc.com/news/world-asia-india-52672510