Covid 19 has induced a crisis grasping the world abruptly, simultaneously, and swiftly. As a critical juncture, it ignited a change of era for international business. The current crisis is also unprecedented because it combines a fall in global demand, tighter financial conditions and a major supply shock. At this stage India is widely affected by supply distortion.
Despite the many drawbacks India has a golden opportunity to dominate the trade market and create a stronger foresight for the development of its GDP. Additionally large scale foreign investments are taking place across India, many big brands want to manufacture innovative products back in India, which can directly increase India’s export business.
To sum up the Import Export business in India has a vast difference between the expectations of business owners and the reality the present climate reflects. Indian government has good intentions of making India an export hub and the current situation provides a favourable opportunity for an exports rebound in the coming quarters.
India’s trade prospects are relatively positive as it has specialized in sectors which will likely be in high demand in the future. These sectors are:
- Pharmaceutical products
- Organic Chemicals
- Medical Devices
- ICT services
To unlock its potential to seize market shares in the labour-intensive manufacturing segment, India should modernise labour and land regulations, address infrastructure bottlenecks and open up further the services sector to trade and investment. Better and less expensive services – financial, marketing, distribution, legal, transport, etc. – will increase competitiveness in the manufacturing sector, boost job creation and meet the aspirations of newcomers on the labour market.