Thread by @Akshobh

My colleague @ISOcertified & I recently wrote in @Diplomat_APAC on diversifying supply chains in the wake of #COVID19. A few commentators have brought in some skepticism on India’s ability to cash. We're fact-checking some commonly pointed concerns (1)..
thediplomat.com/2020/04/after-…

Skeptics commonly point to restrictive trade regime, labor, land, tax uncertainties & lack of investment strategy. GOI has overcome some of these problems. Due to this reform trajectory, we believe #India is more closer to attracting manufacturing investments than ever before (2)

Some major reforms for which govt doesn’t get enough credit: bridging production cost difference between #India & SE Asia. GOI is bridging through some sector-specific policies. Ex: MeitY's trilogy of manufacturing schemes to provide production, capital & land/infra incentives(3)

This will bring #India at par with the most competitive electronic manufacturing destinations in Asia ($10 bn incentives for electronic manufacturing) ii)Tax breaks: tax cut of $20bn announced September 2019 was also aimed at competing with SE Asia (4)..
economictimes.indiatimes.com/industry/cons-…

This had already made India more attractive to companies looking for alternate manufacturing locations to #China. Furthermore, land reforms- such as land pool of 461589 hectares to lure businesses moving out China is a welcome move in this regard (5)..
bloomberg.com/news/articles/…

However, the GOI has to still come up with a strategy to utilize #India's strategic eastern coast & connect with Asia-Pacific markets cost-efficiently, protect investment zones, provide regulatory predictability & access to international arbitration (6)
economictimes.indiatimes.com/news/economy/p…

On tackling #China’s internal supply chain strengths: #Modi govt has learned from its mistake of projecting #MakeInIndia across diverse sectors & is focusing on 10 sectors: #pharma #electricals #heavyengg #chemicals etc, where #India has strong advantages.wionews.com/india-news/ind…

This is more likely to succeed as #India has well-developed domestic supply chains in these sectors with robust MSMEs which consistently rank among the country’s top 10 exports. Companies leaving #China in such sectors would definitely look favorably upon India’s strengths (8)..

On labor reforms: the sweeping reforms by states such as UP & MP is a positive development. The states should now clarify that these are applicable to both existing & future investments & also extend them for a period beyond 3 years #India (9)..

https://twitter.com/someshjha7/status/1258421242538930177?s=20

There’s definitely alacrity from GOI this time to cash in on the opportunities. Movements on sector-specific incentives, tax breaks, land, labor & infra developments & sector strategies to play to #India’s strengths all show positive signs.. (9)

GOI should now effectively & repeatedly communicate the above reforms to investors through the right business channels, address concerns & hammer home that #India means business & is ready to offer the next Shenzhen & Guangzhou(10)
timesofindia.indiatimes.com/city/ahmedabad… timesofindia.indiatimes.com/business/india…

Some critical issues GOI has to now focus on include protecting investment zones from inspector raj, regulatory predictability & access to international arbitration strategy to leverage east coast & labor training incentives. #India #Manufacturing (11)..

economictimes.indiatimes.com/news/economy/p…

With the above issues addressed, @ISOcertified & I
think #India can really set itself up to make the most of the evolving situation & very well manage to catapult its #manufacturing sector. (12) CC:@d_extrovert @Cold_Peace_ @_India_Research @SurajBala @ZeeMohamed_ @optimist_sagi