Welcoming global firms

Context: Amidst the pandemic, re-examination of the nature of Globalisation suggests a balance between self-reliance and treating global firms as partners in India’s economic growth.

Need for global firms:

• Shifting global supply chains: As a consequence of pandemic and lack of resilience of global supply chains, investors may be willing to shift to new geographies.
• Not enough Domestic Demand: Mass manufacturing must be an important step towards development. As India’s own demand is unable to sustain its size, inclusion of global supply chains can lead to mass manufacturing. 
• Damaged corporate sector: Due to political resistance which try to avoid competition from organised retailers. This discourages growth and employment in organized sector retailing.

Advantages in global retail: include large investments, mass manufacturing, part of global supply chains and creates employment.

Way forward:

• Removing the uncertainty : Bringing out clear cut rules and treating foreign investors as partners and not antagonists. China’s example is due the case.