Even as border tensions between India and China are constantly on rise, India has been diligently working towards its strategy to replace China as the hub for global supply and value chains.
Prime Minister Narendra Modi on Thursday highlighted India as an alternative destination for trade and investment at a time when the whole world was rethinking the global economic order in the wake of the coronavirus pandemic and the global supply and value chains were undergoing massive transformation.
The Prime Minister was addressing the annual leadership summit organized by the US-India Strategic Partnership Forum via videoconferencing.
Even though he did not directly mention China in his speech, It was evident that he was talking about the possibility of India emerging as an alternative destination for global companies at a time when the international community at large is becoming increasingly wary of China due to its rather controversial role in the coronavirus pandemic as well as due to the blatantly unjust policies it pursues with regard to Hong Kong, Taiwan , Tibet and the handling of its own internal affairs, crushing any dissent and grossly violating human rights.
Ever since the Coronavirus pandemic has taken its course across the world, companies from the US, UK and other developed countries have been looking to relocate their manufacturing base to somewhere other than China. And India has been trying to pitch itself as a viable option in this regard.
India has also been consistently working through the Quad form to develop alternative and resilient supply chains in the Indo-Pacific region. A recent virtual meeting between Trade and Commerce Ministers of India, Japan and Australia said such an initiative could be launched later this year.
India is all set to host the Quad Foreign Ministers meet later this year. The significant amount of time and energy India is spending on Quad signifies the fact that India is serious about getting together with US, Japan and Australia to address China’s growing interference and hegemony in the global order not just militarily but also economically.
India is specially focusing on the US in terms of getting business and investments. In view of the ongoing tensions between the US and China, India could benefit a lot from American companies wanting to set base here. And India seems to be taking full leverage of this fact.
While speaking virtually at the US-India Strategic Partnership Forum, PM Modi also invited US businesses to come and invest in India. India had received USD 20 billion foreign investment this year with companies like Google, Amazon and Mubadala announcing long term plans, he said.