Covid-19 has impacted India in many ways. Apart from crippling its economy by restricting the movement of people and goods, work from home and online education have been accepted as a way of life. It has also led the world to the stark realisation that supply chains need to be more resilient to withstand shocks of sudden disruption (due to a pandemic or causes beyond human control).
Over the years, global supply chain networks have been concentrated in China, on account of low prices offered, particularly for electronic goods. Commissioned by the Indian Ministry of Commerce, a study now highlights the opportunities and challenges for India arising out of the changing global supply chains.
Even prior to Covid-19, the trade stand-off between the US and China had resulted in global tensions. The US’s aggressive steps to protect its industry by creating a series of financial barriers in the form of steep hike in import tariffs had an understandable reaction by China, which resorted to sharp increase in import duties on goods that were likely to hurt the US economy. It soon turned into a trade war.
Source: Financial Express
