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and Milind Deora
A post-Covid world will not be, and should not be, the same as before. We will witness transformative “new normals” in the way we work, consume, travel, the way we relate to and interact with each other. Inevitably, cultural and social transformations will be accompanied by other geopolitical and economic ones.
In particular, the world is likely to recognize and try to rectify the cracks in its own economies and institutions, starting with the global over-reliance on China.
When that happens, India should be ready. In addition to focusing on short- and medium-term strategies to minimize economic damage, we must be mindful of what comes next: how India can position itself, in the foreseeable future, to become a driving force in rebuilding world economies. ; and in the long term, play an indispensable role in global supply chains (GSCs).
Young and Productive
Before the crisis hit, India was already leveraging some of its core strengths to forge a dominant position on the global stage. One of our biggest advantages is the demographic dividend, 600 million young people, which is also a critical factor in China’s growth trajectory in the 1980-90s.
It is no wonder that we are the most preferred offshoring destination in the world, with a market share of 55% of the global service supply business. We have an almost unmatched business base, with the world’s third largest startup ecosystem and the third-highest number of unicorns after China and the US. USA
India’s multicultural and socially diverse demographic group provides us with information that enables us to forge successful diplomatic and strategic alliances around the world.
We are also recognized as a country with a legacy of non-alignment, which embraces a philosophy of multiple alignment. With these strengths in our arsenal, the stage is set for India. What we need to do now is capitalize on them.
As powerful economies grapple with their pandemic-exposed weaknesses, pre-Covid protectionist sentiment will only be exacerbated, with countries seeking to diversify from China. We must take advantage of this diversification of GSC by underpinning national manufacturing and services, while creating jobs for our workforce, to become an attractive investment alternative.
Two things require our attention.
One, to intensify and redouble our efforts in the “Make in India” initiative in partnership with state governments. The initiative targets 100 million additional jobs and a 25% share of manufacturing GDP by 2022. Two, to reevaluate Special Economic Zone (EEZ) policies to boost competitiveness and stimulate growth in manufacturing and services.
India has taken remarkable steps in creating an ecosystem for businesses to prosper. In the World Bank Ease of Doing Business index, India increased 79 points in six years, from 142 in 2014 to 63 in 2019 among 190 countries.
We need to maintain this trajectory and focus on reforms that address obstacles to business growth in India, from countering the official overshoot on tax collection to loosening regulations on starting a business.
We must strengthen our global acceptability by investing in sociocultural cohesion. It is in our strategic interest to ensure that each community and identity feels accommodated and appreciated, and that this diversity coexists in harmony.
Our smooth diplomacy efforts must focus on reassuring the world of an India that is resilient, united and capable of forging mutually beneficial partnerships with any part of the world.
Finally, we need to actively encourage talent lateral to the government from industry and the private sector. In a world driven by innovation, it is essential to have highly specialized experience that can help the State solve some of the most complex challenges it faces.
We have been developing capabilities in various sectors, and strengthening our technology base, which can allow us to catapult ourselves to the center of the stage in the world’s post-Covid growth story. Nothing happens overnight. But we certainly have the potential to gradually develop the skill, scale, and speed that have enabled China to dominate the GSCs.
More than anything, this crisis has offered the world a glimpse of India’s resistance. No other country has proven to unite in devastating times like us. A lock of this scale and nature is impossible to execute without problems.
The demographics of India complicate many things. Millions of daily salaried workers have lost their lonely source of income. Many have lost their jobs, many companies will perish in the running of the bulls.
Despite this, our adherence to the blockade has been a great success. The Indian people have incorporated resilience and determination in their response to this crisis, not only by observing security measures, but also by bringing together the business community and civil society to coordinate large-scale relief efforts. for those most affected by loss of income.
All for one
The credit is due, in part, to the stable federal government of India, which has four years for the next general election. Going forward, it will take collective experience and leadership to build a reinvented and resurgent India that is not only globally important, but also serves the interests of unorganized sector workers, farmers, MSMEs and industry.
For all these reasons, at a time when we are bombarded with only grim images of the future, India has the ability to rise up and become a beacon of hope for the rest of the world.
The writer is a former Union minister.
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