China will surely get replaced by India as the world’s leading supplier in Global Industrial Chain
Uttar Pradesh, India’s largest state, bigger than many countries of the world, is forming an economic task force to attract companies eyeing a manufacturing shift from China, according to media reports. Due acute economic pressure facing China amid the Wuhan pandemic, India is going to become the world’s next factory. India is on track to replace China and it reflects the expectation of the rest of the World.
In spite of an economy-crippling lockdown to save the life of its countrymen, India is daring to dream big to expand its economy. The rest of the world too wants that India should replace China’s role in the global industrial chain.
Ratted by all these activities at the International level, China has become angry and now the Chinese Military too seems to have joined the Communist Party of China to take the issue beyond economic issues to reach the military level.
China mistakenly believes that they can confront India with border issues just like the 1950s and 1960s.. Such thinking is undoubtedly dangerous and misguided, as they already seem to have forgotten the thrashing received in 1967 at Nathu La.
Thus far, Indian border police, the Indo Tibetan Border Police was taking measures and made necessary moves in response to Chinese recent attempt to unilaterally change the border situation in the Galwan Valley region. However now the Indian Army has stepped in and taken control of the situation.
Western countries, Japan and Australia have been enthusiastic in urging India to open its facilities and its market potential to attract all the exodus of Multinational companies from China, which has given some real fright to the Chinese.
Apart from the exodus to the Wuhan virus, the ongoing tensions between China and the US are also an opportunity for India to attract relocating industrial chains, because the South Asian country is fully prepared to receive such a manufacturing shift given its infrastructure, availability of skilled labor and scientific industrial base.
India has been planning to become the next world factory since 2014 only, and the government has launched various initiatives to forward that goal, such as the “Make in India” campaign, which has done impressed the world. Observers have generally attributed India’s manufacturing problems to its failure to conduct pragmatic reforms, which have now been carried out.
Fundamentally speaking, India’s indulgence in its manufacturing prosperity is partly derived from rise in nationalism at home and belief in itself. Even countries like US have no choice left but look up to India.
However this does not mean that India will be joining the American or some other camp. India will be following its own policy and is now willing to play a bigger role in International affairs both economically and diplomatically.
At present, the Asia-Pacific economies are undergoing tremendous changes, with industrial chains adjusting to Wuhan virus shocks. The battle between the dragon and the elephant of Asia is also evolving rapidly amid the changing geopolitical pattern.
The need of the hour is however to see that the two major emerging markets find a way of getting along. And during that process, pragmatism is what the Chinese Government really needs, rather than militarily muscle flexing.
