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The defining moment has come in India and, if managed wisely, India could secure a better place in the new world economic order. It would mean jobs and an easier recovery from the devastation caused by the pandemic.
CEOs of the manufacturing giants have had a serious ABC case, Anything But China, from a mild one just to think of it. They want to move or at least lessen their dependency. An active search for other host countries is underway.
Prime Minister Narendra Modi has a real chance to steer the Indian ship to a better place. India is already a player in services, although Corona has seriously affected back office operations, but now it has a rare chance of becoming one of the assets. Leadership has to think fast, think big and, most importantly, think about the necessary steps. You may have to go beyond the Gujarat box to find answers.
Mukesh Aghi, chair of the United States-India Strategic Partnership Forum, told me that the top three priorities for India should be transparency, land reforms, and labor reforms. “The fundamental problem for American companies, and by implication for European and Japanese companies, is the lack of predictability and transparency in policy formulation. A multinational company must feel part of the consultation process to build trust, “says Aghi.
USISPF has become an important channel of communication between American companies and the Indian government, especially in these days of Covid. In addition to webinars and connecting state government officials with company bosses, Aghi and his team make sure that policy talks run smoothly. American officials are also often in the mix.
Earlier this month, the team sent out a hands-on “to-do” list in key sectors for India’s Covid-19 Economic Response Task Force. From allowing loan restructuring to giving foreign portfolio investors easier access to deferring certain compliance deadlines to using low oil prices to provide relief to consumer loans to fill government job vacancies: they are 10 pages of helpful recommendations.
India is in the top five destinations on the top CEO list, but it is NOT the automatic choice. The million reasons why, political and bureaucratic, are well known. We have a special capacity to tire people with too much confidence (size of the Indian market) and infinite arrogance (ministers dissuade investors rather than woo them).
If India wants to take advantage of this Crown-induced opportunity, it has to sweat alongside Vietnam, Cambodia and Bangladesh. As in the past, competition is proving to be more agile.
If India wants to be a bigger part of the US supply chains. USA, This is the time to show reliability. The list of essential services and critical manpower can be aligned: India can basically map the US list along with what it deems critical so that supply links are not broken or drowned.
The government must also guarantee a perfect implementation. Companies should not have to beg for switches used in data centers or negotiate with police to access their casualties to obtain laptops for their workers. As one business expert told me: “If you can maintain supply links now, American companies will turn to you for more information.”
Think about the equipment you need for a future 5G: phones, televisions, laptops, if that’s the next wave. If a sensitive electronic ecosystem existed, Apple could export equipment worth tens of billions out of India. The medical manufacturing industry is another that could change bases if the environment were friendlier.
Honeywell sought to establish a plant in Maharashtra in a hurry to mass produce N-95 masks, but struggled to obtain permission. He decided to use the existing facilities, but he still has jump rings. If there was a time to move quickly, this is it.
Finally, the opening of the economy cannot be as chaotic and thoughtless as the closing was. The upper class bureaucrats never imagined the exodus of migrant workers because they thought of Gurgaon, not Bihar. When it’s time for workers to return, they must have the dignity of state transportation at a minimum.
India’s $ 22.6 billion stimulus package may not be enough to cover Covid’s aftermath. It is important that no one fails, neither the public nor the private sector. And not the workers.
The opinions expressed are personal.
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