Covid-19 from China has compelled the MNCs to shift elsewhere and India is the best destination resulting in more job opportunities for MBA students. SPSU is always set to turn out the best MBAs in every academic session.
With the widespread Covid-19 pandemic in China, many multinationals with manufacturing plants in China are now looking to shift operations in other countries. Many governments have promised to assist these companies if they decide to move their plants to other countries.
For example Japan is ready to spend ¥243.5 billion to help manufacturers to shift production out of China. Out of this provision, ¥23.5 billion have been provided for those companies which are planning to move to other countries. Similarly the US Government has also promised to support companies contemplating India as an alternative to China.
About 200 American companies are seeking to move their manufacturing base from China to India The US-India Strategic and Partnership Forum’s (USISPF) President Mukesh Aghi recently informed that many companies are thinking to shift from China by investing in India. Mark Linscott, Ex Assistant US Trade Representative for South and Central Asian Affairs, in association with USISPF member companies, is striving to develop priorities India should give to enhance its exports. Global manufacturers have initiated talks with Indian firms to explore the possibility of shifting a part of their supply chains from China .
In India, the post scenario after COVID-19, we are optimistic from the job opportunities point of view. In addition to MNCs coming to India, existing E-Commerce industries, Internet or Telecom industries, Entertainment Sector, Food Processing Industries, Fund Transactions, Agriculture and Aggrotech, Health Care and Insurance, Pharmaceuticals Sector, Packaging Industries, Logistics Services, IT and ITeS sector, cement and infrastructural industries will continue to grow at a massive scale.
BETTER EASE OF DOING BUSINESS IN INDIA
India has a better ease of doing business that has drastically improved in the recent past. India has moved 14 places to be 63rd among 190 nations in the World Bank’s ease of doing business ranking. This is because of many economic reforms initiated by the present government. The country was 77th among 190 countries in the earlier ranking last year recording an improvement by 23 places.
Junaid Ahmad, World Bank Country Director in India recently said “India’s impressive progression in doing Business rankings over the past few years is a tremendous achievement, especially for an economy that is as large and complex as India. Special focus given by the top leadership of the country, and the persistent efforts made to drive the business reforms agenda, not only at the central level but also at the state level, helped India make significant improvements.”
EFFORTS INITIATED BY INDIA TO INVITE MNCs
The Government of India is now planning to offer several incentives to attract factories which are making their way out of China in the post Covid-19 situation. There is a possibility that a large number of companies will be relocating out of China. India has a strategy to woo Japanese firms as Japanese Government has also offered incentive plans to help their companies move out. The Central Government has set up a committee of joint secretaries from different ministries and departments to see how to attract foreign investment in the present situation.
Representatives of many state governments recently had a video conference with a number of American companies to attract investments from multinationals looking to move out of China.
This strategy will be successful only when more reforms are introduced and the government frames more liberal policies and there is no doubt that these changes will now take place in India.
Prof. Sushil J. Lalwani
Dean, School of Management