The scale and spread of globalisation has suffered setbacks owing to the surge of economic nationalism and rising geopolitical tensions. These trends have been compounded by the sudden onset of COVID-19, bringing into play health and travel-related risks as some of the prime determinants in global supply chain reconfiguration. Comparative benefits of global manufacturing nodes are now being challenged by compulsions to reduce excessive exposure to one geography. Investors and enterprises are rethinking current supply-chain models in the quest for safer harbours to disaggregate geographical concentration as well as diffuse geopolitical risk. Supply chain configurations and selection of manufacturing locations by organisations will now be determined by:
These future configurations might also depend upon the nature of industry, source of investment, and supply-chain maturity. Any disruption presents India with an array of possibilities to attract inward investments.
However, for India to continue making substantive inroads towards becoming a lucrative destination in global supply chain reconfiguration, it is critical that the government maintains pace and scalability of reforms while strengthening infrastructure growth. Its regulatory and investment policy will need to integrate the progressive changes in land, incentives and infrastructure, with the foreign investment norms and tax regime. Besides, India will need to follow a more aggressive approach in reaching out to global companies to increase their business presence in the country.
What makes the country attractive to foreign investors?
We understand the complexities of today’s volatile and high-risk business environment. Our experts have put together specialised programmes to help clients throughout the business lifecycle from setting up base in India to assisting in business operations. Our professionals are experienced to help clients overcome barriers and increase supply chain resilience while leveraging the India opportunity through a value-driven approach.
Our specialised offerings in the space are focused around helping organisations reduce cost, build resilience, enable reconfiguration and overhaul wherever needed.
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