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Indian Economic Outlook After Lockdown

By: @dmin@0 comments

This is the time to remember The Great german philosopher, Friedrich Nietzsche who advocated bessemerisation of superman from a man. Crisis for an ordinary individual is a difficult phase where he succumbs, on the contrary the other individual sees this as a chance to upgrade himself and set up things in motion to become superman. In the lexicon of a politician, “crisis” is a time to further strengthen his position, whereas for a leader its an opportunity to improve position of the country.

Soon it will be decided by Central Government whether to remove or continue the lockdown and in what format and uptown what extent’ although it will be essential to reignite economic activities in safer zones. The wider question now being asked is what kind measures will the Government take to evolve better version of better India.

Two weeks of lockdown has given lots of time to many business leaders and policy makers for introspection. Impact of Wuhan virus on international politics and economy will be many, but few of them have to be highlighted.

(1) Failure of International bodies: WHO in its grand failure has taken its sweet time to declare it a pandemic and warning the world about transmission of virus among humans.  Failure of international bodies such as WHO and UN at this critical time will lead to drastic changes in the structure and functioning of these forums. Irrelevant powers of the past holding on to important posts in such international bodies will reluctantly pave way for emerging powers, such as India.

(2) Change in production base: China has been hailed as factory of the world but the Wuhan virus will change this trend, more countries will diversify their production base to other countries as well. This change of production base may or may not include China, the purpose of this change will be to secure the supply line as single base of production may disrupt the supply chain in future.  There isn’t a shred of doubt that the decision to diversify production base will definitely benefit India albeit we change our policies to suit major business houses. In an innovative measure Japan has lured its companies by incentives of $2.2 billion if they change their base from China to either Japan or some other countries, this trend may be visible with other countries too in near future.

(3) Chinese masquerading communism as capitalism: The cloak of capitalist economy has been removed, now the Chinese motive of expansionists economy aligned and supported by communist ideology stands clearly in world view. It’s widely accepted that major Chinese business houses are controlled and aided by Chinese Communist Party. Now the Chinese Government is using these companies for hostile takeover of several American, European and Australian companies, so in this new war resources of other countries can be acquired without firing a single bullet. Its quite evident that the Chinese Communist party wants to expand its base with the help of capitalist tool, the world has deciphered this Chinese move.

(4) Shielding companies of strategic importance: Government of different countries throughout the world have taken initiative of protecting companies of strategic importance from hostile takeover by the Chinese companies. Recently Italy has declared that it is going to protect its major companies of strategic importance with use of government fund. Soon we can see other countries will move towards this objective in different ways. 

These are few of the major points which are going to determine future of business activities in the changed world after affect of the Wuhan virus disappears.

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