WHAT DOES INDIA STAND TO GAIN FROM THE 'CHINESE' VIRUS?

With several nations already being very upfront with their views on china’s contribution to the pandemic, it’s likely to affect the ‘cheap-labour’ manufacturing giant’s business in the coming months. While the West is also emerging as an even bigger hotspot, you can not be totally wrong to place bets on the indian market’s growth prospects in the not so distant future and here's why.

Business as usual for several industries seems a little too good to be true thought but it’s coming. While businesses not being able to survive the blow might resort to liquidate and look for options, those who might will certainly have a hard time for the initial period. While simply being open for business is not good enough, there will be a huge uncertainty factor looming. 

One of the worst hit areas of the economic impacts are the monstrous factories who at one point of time used to churn out hundreds of products at an alarming rate and are now in a state of complete shut down. With most of their employees furloughed or worse, they would certainly look towards modifying their business models.

China has a huge manufacturing industry. It enjoys a fair amount of international market share and is more or less dependent on it to sustain. While several trade partners of China are unhappy with it at the moment and thanks to the ongoing trade war, they are likely to look for other options and it could not come at a better time while the units have been shut for a period of time and the employees are gone. India is china’s direct competitor in the manufacturing industry in south Asia. Various pro-business initiatives by the present government have ensured India’s readiness to brace the global market’s influx into the country. 

Many giant companies have or already were planning to expand production to India. Apple for instance operates in India at a not so large scale but is looking to base a large part of it's Chinese production quota outside the country's borders. Google and Microsoft also eye neighboring Vietnam and Thailand for new manufacturing hubs. Though it won't be easy for companies to just move on from China, its more or less going to happen.

While it's not just manufacturing that will benefit India, it has various other things to look up to. FDIs and supply chain breaks are what India can hugely profit from. While the grim days for the industries of India are going to be here for a while, India needs to prepare to take its place in the global manufacturing business and prepare for this long awaited leap.