Economic measures by India and other countries to cope with COVID-19 and policy recommendations to enhance India's future competitiveness

Abstract

COVID-19 pandemic has created unprecedented socio-economic disruption across the globe, in the year 2020 so far. Due to Covid’s origin from China, its novel nature and dearth of transparency by China, many businesses are planning to shift their manufacturing ecosystem out of China. Since China manages the largest manufacturing Value chain of the world, the share of manufacturing opportunity is mammoth. In the famous words of Winston Churchil, “Never let a good crisis go to waste”. This report compares in detail the socio-economic responses to Covid19 crisis by a select group of countries with India. These countries are the preferred destinations of businesses for the last several decades and Covid19 crisis will hasten the process of shift from China to many of these countries. The report compares economic stimulus packages given by the governments of these countries with respect to India, and the same is assessed in the backdrop of economic policies & frameworks. In the end, the report proposes recommendations, which highlight other initiatives that Indian government may consider in an attempt to invite foreign investors to consider India as one of the most favourable and attractive destinations for Foreign Direct Investment in manufacturing.