View: With the Global Supply Chain Being Reconfigured, India must Intelligently Restructure its Economy

05/26/2020

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ET Contributors|N Venkatram|The Economic Times

Covid-19 has changed our collective calculus of uncertainty. It is more global in scope, more profoundly impactful, and much more complex than any crisis that countries and companies have ever experienced. The next normal requires confronting uncertainty head-on and building it into decision-making.

To my mind, ‘Respond, Recover, Thrive’ captures the spirit of the Indian government’s reactions to the pandemic, the economy, and building for the future. That was evident in the announcements last week to revive and restructure India’s economy, with multiple policies that will find common cause with another fallout of the contagion — possible reconfiguring of the global supply chain by multinationals.

The two are linked and is likely to become more so. Plainly, it makes sense for India’s domestic market of 1.32 billion consumers to be viewed as an opportunity.

Equally, this is a market that global manufacturers need to target for their long-term viability in a riskier world. That is the real measure of the moment and the government is right to pursue a restructuring of India anchored by the following strategic objectives:

*Unifying India with economic development that is plural and rural.
*Balancing the approach to regional development.
*Strengthening and leveraging India’s domestic market to attract FDI.

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