Due to the irresponsible and non-transparent behavior of China while handling the outbreak of COVID19 which has destroyed economies, many multi-national firms have lost their faith in the China story. More than 1,000 of these are currently looking to shift their operations and manufacturing units from China to India. India is not only a suitable manufacturing hub but due to the market size, India also proves to be a major consumer of products produced here. Japan has also announced financial aid of $2Billion for companies to shift their factories out of China. With the improvement of ease of business index in India, many firms are finding India more suitable than other options like Vietnam. “Now the world is rethinking its strategy of putting all eggs in one basket. A lot of interest is being shown by companies towards India,” said Guruprasad Mohapatra, Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT). Is this the end of China story? Well, the coming months will paint a clearer picture.
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