Lesson For World Manufacturing Sector From Chinese Virus Outbreak?

For India to turn into the following manufacturing powerhouse, it should first learn from China – with or without the coronavirus. Indian factory manufacturing action eased back in march as new requests contracted, reflecting stresses over store network disturbances identified with the quick spreading coronavirus flare-up, which has restored monetary market fears of a downturn.

When Covid-19 struck China, many Indian policymakers and industry leaders saw opportunities rather than a crisis. Top officials called for meetings with industry representatives, while Deepak Sood, secretary-general of the Associated Chambers of Commerce and Industry of India (Assocham), called for a clear strategy to fill the gaps in the global market and to compete effectively with China “even when the Chinese exporters are able to normalize their global supply chain”.

Moreover, despite efforts to boost India’s manufacturing, it consists mainly of assembly lines rather than industrial clusters, so it has some way to go to develop a fully-fledged capacity comparable to that of China.
Modern manufacturing has a sophisticated multi-tier structure: those directly connected to the assembly line are the first-tier suppliers, who have second-tier suppliers of their own, who may, in turn, have a third tier of suppliers. For example, as one commentator pointed out in Foreign Policy, Volkswagen has around 5,000 first-tier suppliers, each with an average of 250 second-tier suppliers, so it could end up with as many as 1.25 million suppliers.

So even if the Indian government successfully attracted some manufacturers with their first-tier suppliers, it would still need to cultivate a suppliers’ network and forge industrial clusters. The current coronavirus flare-up has indicated that worldwide manufacturers ought to expand their nations of creation. It is in fact evident that delivering merchandise in China is less expensive, however any inner issue could turn into a worldwide issue; in the end, costing more than what is monetarily feasible. Therefore, it is a judicious and astute advance to move investment projects to different nations as quickly as time permits. I call it "win-win like a sun" for the prosperity of humankind in all viewpoints.

As far as dealing with vulnerability underway because of outer elements, as on account of the coronavirus, it assists with having an equalization underway. The devastating disturbance to Chinese manufacture supply lines has roused discuss India benefiting from Covid-19 to help its 'Make in India' push. But the challenge of setting up a reasonable inventory organize, with the skilled workforce to work it, is overwhelming even before India went into its very own lockdown.

An unfavorable condition in China could produce a tidal wave in Indian manufacturing, with industries like electronics, medicines, textiles, and autos bearing the brunt.