21 June 2020

Diversify and Optimize your Supply-Chain: Here’s what India has to offer

 

With its vast array of engineers and investment opportunities, India has got great potential to lead the change in a post-COVID world, says billionaire entrepreneur Mark Cuban. He believes that the Covid-19 pandemic will force countries to evaluate their dependence on imports for essential goods. With China leading the world in exports, Cuban said, countries like India would start relying inwards upon. “Every country will want to build critical products at home,” he added.

 

There is a growing interest from companies worldwide, in diversifying their supply chain and looking at India as a great alternative. This change could possibly build a very strong business ecosystem in India, benefiting all. In order to rightly capture the interest, the Indian Government has taken bold steps incentivizing companies to set up their production units in India. Here are some of the key pointers:

  • India is developing a land pool nearly double the size of Luxembourg to lure businesses, easing the process for companies to acquire land. This has been one of the biggest impediments for companies looking to invest in India.
  • To simplify the process of land allotment, an online portal is also said to be in development.
  • The major focus from the government is in 10 sectors — electrical, pharmaceuticals, medical devices, electronics, heavy engineering, solar equipment, food processing, chemicals, and textiles — as focus areas for promoting manufacturing.
  • Central and state governments are looking to develop industrial parks and corridors on lines of China and ensure consistent policy framework for foreign investors
  • The Indian government has taken steps like promoting ease of doing business and liberalization of the foreign direct investment norms to attract overseas investors. India has jumped 14 places to the 63rd position on the World Bank’s ease of doing business ranking released last year. It figured among the top 10 performers on the list for the third time in a row, mainly due to the successful implementation of the Insolvency and Bankruptcy Code.

 

We strongly believe that India will provide a great ecosystem and growth opportunities for companies looking for diversification in their supply chain. With the highest young population in the world, competitive skill-sets, and relatively low wages when compared to Nordic markets, India could prove to be a game-changer for your business. If you’re interested in exploring this opportunity, please get in touch with us at team@nordichub.in.