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India to benefit from shifting of global supply chains from China: Ficci


India could benefit from the likely shift in global supply chains from China to other economies in the aftermath of the COVID-19 pandemic, according to a survey . The Ficci-Dhruva Advisors Survey conducted this month covered more than 150 companies in India.

“Another major outcome of COVID-19 is the likely shift in global supply chains away from China to other economies. Nearly 70 per cent of the survey participants have said India could benefit from this move and they expect a fair share of manufacturing to shift from China to India in the near future,” said Ficci on the findings of the survey.

Moreover, the prospect of introduction of a vaccine against COVID-19 early next year has improved the confidence level of businesses, with almost 74 per cent of the participants foreseeing a significant positive impact on their business once the vaccine is made available, the survey revealed.

However, to capitalise on the opportunities that could come India’s way, there is need to strengthen its manufacturing ecosystem. Under the Aatmanirbhar Bharat package, the government has introduced several measures to address the immediate pain points of the economy as well as steps to improve India’s manufacturing competitiveness.

These measures have been well received by the industry, with 45 per cent of the surveyed companies rating the latest set of announcements made under Aatmanirbhar Bharat package 3.0 as ‘good to excellent’.

“The results of the survey are encouraging and highlight the ongoing industrial and economic recovery. This momentum needs to be built upon and now all eyes are on the upcoming Budget,” Ficci President Uday Shankar said.

He observed that the context of this Budget is completely different due to an unprecedented social and economic challenge, exuding confidence that the government will take bold steps to respond to these challenges.

According to the survey, COVID-19-induced travel restrictions have limited the ability of companies to undertake business operations efficiently, as 74 per cent of the respondents have validated this.

To overcome this challenge and maintain business operations, companies have leveraged digital tools for communication. Given the benefits of use of technology, 64 per cent of the surveyed firms said moving forward, they will use a mix of travel and virtual meetings even after the situation becomes normal.