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COVID And Its Impact Upon India’s Foreign Policy Changes

COVID and Its Impact

The Indian economy is one of the fastest-growing, despite pandemics in the world today. Due to this, the government and its agencies are constantly looking for ways to increase trade exchanges with other countries. The country has recently implemented India’s foreign policy, which is an excellent strategy that can increase India’s exports and reduce imports. However, this project should not be seen as a mere reaction against Trump’s America First philosophy; it has roots much deeper than that.

At the time, India presented itself as the next great emerging market by offering investors in the West low manufacturing costs and abundant cheap labor. The only thing that has changed is that India’s economy has continued to grow and its manufacturing sector is no longer considered as cheap as it once was.

Reduction Of Imports:

The biggest advantage of the new FDI regulation is that it will reduce imports into India. This is mainly because of the idea behind India’s foreign policy, which is to provide incentives for companies to develop their manufacturing capacities in India rather than importing machinery and equipment from other countries. One such Incentive scheme is PLI (Productive Linked Incentive) for the electronics manufacturing sector.

The idea is to provide incentives for companies to develop their manufacturing capacities in India rather than importing machinery and equipment from other countries. The idea is to promote self-sufficiency (Atma Nirbhar Bharat) in the country and reduce our reliance on foreign goods.

Economic Development:

Despite the pandemic in the world, our country has another advantage of India’s foreign policy is a massive boost to employment opportunities. With more companies investing in India, there will be an increased need for manpower, and hiring more Indians. It will be an excellent way for India to take advantage of this opportunity. India has enough educated people with the skills needed by modern businesses so there shouldn’t be any problem with finding qualified workers for these positions.

 (Currency Crash)
(Currency Crash)

Increase In Exports:

One of the main reasons behind the current economic development growth in India is the increase in domestic production. The new FDI policy will not only help reduce our reliance on foreign goods. But it will also provide a boost to our current low-cost business which is still growing despite being below its capacity. India is still known as a cheap manufacturing base.This new policy could be an excellent way for companies to take advantage of that fact.

Enrichment Of Small Business:

The demand for goods across the country is constantly increasing. So, the new policy will help many local businesses to grow. However, some may worry that the new FDI regulation could result in the development of large corporations at the expense of small business owners and employees.

This may not be true because no matter what changes happen in India’s markets. There will always be a need for small merchants as they offer customers more personalized service. In the global market, consumers seek familiar brands, providing an opportunity for small-scale companies to shine through heightened brand recognition.

How Does The COVID Program Work?

All companies that wish to invest in India have to first obtain a permit from the government. They must provide a signed agreement between their government and India’s government so that all the requirements are met. For example, if a company wants to build manufacturing plants in India, it must first obtain permission to do so. Their agreement with India will then be placed on the Indian government’s website. As long as everything is up-to-date and accurate, all permits will be approved. All applicants will then go through a review process before it is approved or denied. As per some reports, covid 19 started in China, and it became one of the deadliest pandemics in the world. Due to this many big firms are shifting from China to India.

What Are The Benefits  Of This Program?

It’s easy to be cynical about something like this because it’s not often that we hear about positive changes made in India by its government. However, this particular policy does seem promising as it has a lot of benefits for all parties involved. Investing in India offers companies the advantage of streamlined permits, minimizing bureaucracy and unnecessary delays. Despite the global Covid-19 pandemic, Indian businesses can concentrate on their core operations, unburdened by excessive red tape.

(International Diplomacy)
(International Diplomacy)

Who Is This Program Intended For?

The COVID program is mainly intended for foreign companies that want to invest in India. This is also open to Indian businesses that want to expand overseas. I.e, Indian companies could take advantage of this program by investing in a foreign country like Australia or the US and establishing their own offices there.

How Can Other Countries Benefits?

The main reason behind the COVID program is to help India pursue a more self-sufficient economy. Investing in India fosters self-sufficiency and stimulates domestic business expansion. The obvious benefit of this is that the country will be able to move beyond the role of being a cheap manufacturing base, which is still clearly important, but an outdated one. Due to this, these countries can revamp themselves from another pandemic in the world.

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Disclaimer: Views expressed are the author’s own.

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