Industrial lobbies are already working to convince the Indian government to start coaxing companies willing to move out of China.
China is facing backlash from almost every nation on the planet. Dubbed as ‘post-pandemic business approach’, many countries have started making plans to pulls away from economic dependence on China in the future. Opportunities are already opening up as nations look for the new China. Similar Asian countries with cheap and surplus labor like India and Taiwan have immense business opportunities after coronavirus and stand for a sizable share of economic gain.
Highlights! Business Opportunity for India after Coronavirus needs a long-term interconnected strategy of diplomacy and business sense
- Golden opportunity for India
- The first move advantage
- World’s overreliance on China
- Frustration of Industrial lobbies
- Global push towards economic independence
- Wary of the wounded dragon
India has an advantage with the newfound medical diplomacy which is likely to also influence business relations with other countries as and when economies open. The move to India has already kicked off with South Korea being the first mover, trying to find a new home for its major steel manufacturers.
The first-mover advantage
South Korean firms Posco and Hyundai Steel have already made their interest known, choosing India as their new major base for overseas markets. While both have the South Korean Embassy in India working with authorities to set up plants, the current severity of the pandemic has held back concrete negotiations.
However, both Posco and Hyundai Steel are reportedly eager to finalize a deal to have an early mover advantage before a larger exodus of companies from China starts a bidding war.
Moreover, Influential industry lobbies infuriated with the coronavirus-induced helplessness are far more vengeful than national governments. Lobbies are already working to convince the Indian government to start coaxing companies willing to move out of China.
Post-pandemic opportunity for India to rise from the ashes
Before the coronavirus outbreak halted the world economy, India had already been struggling with sluggish growth, as stats have shown in recent years. Economic activity came to a winding halt once COVID-19 hit with 94% of India’s workforce in the unorganized sector, making the situation even worse.
Planning forward and taking a similar first-mover opportunity to allure companies and countries to set up new bases in India will ensure a new pipelines of jobs that will emerge once the economy reopens after the coronavirus outbreak.
Wary of the wounded dragon
The fact that despite global backlash, China still stands as a behemoth of trade across the globe is proof that China is the business shark of the modern world. Most countries in the world have markets heavily flooded by Chinese products. Even with condemnation, the world can’t help but rely on China for resources at the time of crisis.
However, a process has started where countries are mulling the approach of isolation as payback for the economic damages incurred due to China’s initial mishandling of the original outbreak. Trump Administration reportedly has a future strategy to reduce pharmaceutical dependence on China. There might also be sanctions on the way to Beijing post US recovers from the pandemic. India will be crucial to Washington’s strategy due to the vast expertise of its pharmaceutical manufacturing industry.
However, India would be unwise not to tread carefully when exploring business opportunities in the post-coronavirus environment owing to its own economic dependence on China. Any concerted push will have to be a long-term strategy that carefully intertwines foreign diplomacy and economic common sense.