Recapture growth trajectory
The Indian industry needs to stabilize the existing production processes and then venture into the Global markets while working out new investment strategies, said Sanjay Chadha, Additional Secretary, Department of Commerce.
Also, India is looking forward to recapturing its growth trajectory with the restructured global supply chains with enhanced participation in the world economic system, he said at a webinar on 9 May 2020.
The webinar, on “India’s Role in Re-Engineering Supply Chains: Regional and Global Perspectives”, was organized by PHD Chamber of Commerce and Industry on 9 May 2020.
“COVID-19 will be a new normal with new norms of working and we would have to live with it for some time,” said Chadha, adding that the tradeoff between containment efforts and ensuring economic activity needs to be balanced.
“We don’t have a rule book for tackling this pandemic and the Government is working towards mitigating the impact of COVID-19 on economy, trade and industry. Lockdown has led to a slowdown in the transmission of pandemic COVID-19.
“The COVID-19 crisis has brought home the concept of sanctioned domestic capacity to meet the needs of a mass medical emergency,” he said.
Chadha noted that some of the US companies couldn’t expand their production as they are dependent on China. “This is going to be a new normal which we can call the concept of ‘shoring up’ which is bound to happen.
“We need to scale up and have a more exportable surplus and the sentiment should not be to abandon China, but to look at China plus many others for Global Supply Chains,” stressed Chadha.
Chadha emphasized that the Government is continuously working towards resolving the issues of trade and industry. But at the same time, we need to understand that industry should change its mindset and the way of working post-COVID-19.
Going forward, India needs to look at global investments which will be an opportunity, he pointed out.
Chadha also called on PHD Chamber to recommend and suggest issues being faced by the industry so that they can be raised to the ministries and resolved at the earliest.
Speakers at the webinar also discussed about disruptions in Global Supply Chains and call for an Indian strategy including the Middle East and UK perspective on re-engineering supply chains.
Sanjay Aggarwal, Sr. Vice President, PHD Chamber of Commerce and Industry, highlighted the COVID-19 hard hit taken by MSMEs, which are essential for the supply chains to run and bring the economy back.
Noting the pain of MSMEs, he said “We have to ensure that lives and livelihoods are not affected during this difficult time and essential economic activities continue to operate with Government support in the best possible manner.
“There is a huge opportunity for India and we must take advantage of re-engineering the supply chains by enhancing the cost competitiveness of our industry especially the MSMEs.”
Saurabh Sanyal, Secretary-General, PHD Chamber, reiterated the chamber’s call for a stimulus package of Rs.16 lakh crore, which accounts for around 7% of GDP.
This should be announced by the Government sooner than later to mitigate the impact of pandemic COVID-19 on economy, trade, and industry through various relief measures and benefits, he said. fiinews.com
