Realignment of global supply chains has become a hot topic around the world, especially so after the pandemic and China’s aggressive behaviour.
In earlier articles we had discussed the initiative of India, Japan, and Australia to build resilient supply chains in the Indo-Pacific region and chronicled steps taken by India to take advantage of this re-alignment in global supply chains.
Now, Prime Minister Narendra Modi in his keynote address at the 2020 US-India Summit at US-ISPF highlighted the importance of trust that should be inbuilt into global supply chains.
Reliability and Policy Stability
Drawing attention to the pandemic which has caused unprecedented challenges to humanity, PM Modi underscored the fact that global supply chains must not only take into accounts cost but should also be based on trust. He highlighted how, along with affordability of geography, companies are now also looking for reliability and policy stability, adding that India is the location which has all of these qualities.
He also pointed out that during this year alone, India has received over USD 20 billion of foreign investment flows from across the world including from America, the Gulf, Europe and Australia. Top companies like Google, Amazon and Mubadala Investments have also announced long-term investment plans for India.
Undertaking Consistent Constant Reforms
PM Modi elucidated on the comprehensive reforms undertaken by India over the past couple of years, especially the steps taken since the economic hardships due to pandemic began:
- India’s transparent and predictable tax regime with one of the world’s lowest corporate tax rates with additional incentive for new manufacturing units
- Tax payer charter and faceless-assessment which seeks to empower and support honest tax payer
- Unified fully IT enabled GST which has done away with the Pre-GST cascading tax system
- Insolvency and Bankruptcy Code which has reduced risk for the entire financial system
- Comprehensive labour reforms which, while reducing compliance burden for employers, also provide social security protection to the workers
- Opening up of many sectors for private participation such as Coal mining, Space, defence, atomic energy and railways
- Production Linked Incentive schemes have been launched for- mobile & electronics, medical devices, pharma sectors
- Farmer friendly agriculture reforms
Economic and social hardships caused by the pandemic have placed a huge burden on India and the rest of the world. PM Modi said that the current situation demands a fresh mindset, where the approach to development is human centric.
He then highlighted the resilience with which Indian citizens fought the pandemic and took the challenge head on:
- India was among the first in creating a responsive system of lockdowns.
- India was among the first to advocate the use of masks and face coverings as a public health measure.
- India was also among the earliest to create public awareness campaigns about social distancing. In record time, medical infrastructure was scaled up- be it Covid hospitals, ICU capacities and more. Starting from one testing lab in January, we now have around sixteen hundred labs across the country.
- Before the pandemic, India made 0 PPE kits but now India is the second largest PPE kit maker in the world
The government also proactively took several relief measures to help the most vulnerable citizens of India under the PM-Garib Kalyan Yojana, including free food grains throughout the lockdown to more than 80 crore poor citizens, free gas to 8 crore poor families and financial support to 34.5 crore farmers and other needy citizens. In addition, 200 million-man days of work has also been created for migrant workers under PM-Garib Kalyan Rozgar Yojana.
Highlight these facts about how the world’s largest democracy is providing political stability and policy continuity, PM Modi encouraged international community to join India’s journey towards development and progress.
This clarion call of PM Modi to realign global supply chains based on trust and reliability is sure to be heeded across the world.