India is trying to find an alternative to China for the source of some of their items.
A New Source
The Coronavirus has affected China’s businesses and factories. Recently, the majority of these have closed down. The Chinese government wanted to control the spread of the Coronavirus. The fallout was that China was not able to live up to their place in the world’s supply chain.
China has a very important place in the world’s economy. Their factories play an important role in creating products throughout the world. Apart from that, they are also relied upon as sources of certain items.
India is one such one country that has been affected by these events. China’s efforts contribute to more than half of all of India’s imports.
In an effort to bounce back from this, India’s commerce department has begun consulting with various Indian missions from all over the world. They sent letters with the intent of seeking other potential suppliers for their needs.
This has spurred the start of the analysis of certain markets that can replace China as their suppliers. This data was then shared with other departments and foreign missions.
India’s Commerce and Industry minister will be holding a meeting this coming week. The aim of the meeting is to ensure that the plan is pushed forward. Another target is to seek other avenues that may boost local production.
From this meeting, it is said that they will be implementing an export plan. The plan seeks to export 500 to 500 items from India. This is an initiative that aims to capitalize on China’s current gaps.
India has a supply need for over 1,000 items. Some of these items include textile fabrics, antibiotics like amoxicillin and erythromycin, suitcases, and even refrigerators. Also included are data processing machines, parts of cars, parts for cell phones, and steel and aluminum items.
India has a shortlist of countries that they can reach out to as potential suppliers.
For electrical machinery and parts, they are looking to Brazil and Vietnam. Mexico is a potential supplier of plastics, furniture, and toys or games. Parts for vehicles can be found in Chile and Colombia. For antibiotics, it is Switzerland and Italy.
The initial reaching out to these countries yielded positive responses. It seems like most of their import and supply woes will be able to bridged. However, one area that is proving to be troublesome is mobile phone parts and electronics.
China has a stranglehold on this area. Their dominance makes it a problem in finding a replacement for phone and electronic parts. India is not the only country with this problem. All other countries will also be looking for a supplier replacement.