Opportunity Awaits India

According to renowned economists’, what is China’s loss, may be India’s gain. They argue that the world is now searching for an alternative manufacturing hub to replace China, as the danger of putting all eggs in one basket has been realised through this pandemic. In such a scenario, India is perfectly placed to be a major challenger to China as both countries share many common features. Like China, India too has a vast geographical area. While China is the third largest country in the world, India stands at seventh place. Similarly, in terms of population, these two countries occupy first two places in the world. So, in regards to land and labour force, India can match China. Though people talk about cheap labour in China, India is not far behind in providing cheap labour. More importantly, India enjoys good and friendly relationship with almost all major countries of the world. India’s standing as a democratic country and its commitment to preserve human rights adds more teeth to India’s claim. For example, at present China is engaged in a trade battle with United States (US). The said battle is affecting worldwide trade. World economy can be free from such turbulence if China’s monopoly in the manufacturing sector comes to an end. All in all both the world and India will be benefitted if the anticipated shift takes place.

Is India ready to grab the opportunity with both hands? It’s a million dollar question and cannot be answered with simple yes or no. A reality check will find that while some factors favour India, the country will have to improve substantially in some other important aspects. One such sector is infrastructure. No matter how favourable the other criterions are, no investment will be made if proper infrastructure is not available. Starting from land to market to transportation, everything comes under infrastructure. Good connectivity, both in terms of land and waterways, is another pre-requisite for infrastructure. India will have to make huge progress in this sector if it is truly targeting to be the world’s foremost manufacturing hub. So far we have not seen such an endeavour. The government has announced a huge economic package to bring back the country’s economy back on the rails. But not much of INR 20 lakh crore package has been allocated for infrastructure sector. In this regard, India can take a lesson from US, during the great depression in 1930’s, the country decided to construct highway network and brought back its economy in shape. India can imitate US in this regard. We should not forget that our economy got a boost in the early stages of the present century when just after coming to power the then prime minister Atal Bihari Vajpayye decided to construct the ‘Golden Quadrilateral’. It now serves as backbone of India’s economy. Apart from providing infrastructure, the places where new industries can come up have to be identified. Remember that the right place for the right industry is the key to success. So, without any further delay, the government should start creating infrastructure to attract investments. Otherwise, India may miss this golden opportunity.