And for a Friday as India emerges out of this Pandemic wave, hopefully economically safe, some thoughts….. some musings…..
As we grapple with the huge transmissibility of Omicron with daily new cases crossing 3 lakhs, the pragmatic approaches of most state governments in India to protect livelihood to the maximum extent possible, without lockdowns will keep our Economy going. In the first wave of Covid-19 India suffered a huge loss of negative GDP, worst ever in decades, of -7.3%. But most other countries were no better … France -8%, Italy -8.9, Spain -10.9, Britain -9.8, Mexico -8.3 etc. etc. The second wave was more lethal in the number of unfortunate mortalities, lives lost. The current Omricron looks different and some scientists believe it’s the beginning of the End of this Pandemic.
This Pandemic, like every crisis, has also opened opportunities for India. The Developed Economies have realised the folly of only depending on China for manufactured goods. The fast adoption of a China Plus strategy entails diversification of Supplies and Production destinations. India has a huge window of opportunity to integrate further into the Global supply chain and offer value added manufacturing. With some big ticket reforms like IBC (Insolvency and Bankruptcy Code), GST (Goods and Services Tax) and Income Tax reforms including most globally competitive Corporate taxes, supported by Incentives like PLI ( Production Linked Incentives) and the massive investment in both physical and digital infrastructure, India is all set to launch itself into the next higher level of Global relevance and strategic growth.
Air India has already been privatised and LIC will be publicly listed in a mega IPO (one lakh crore plus) in the country. Let’s all support the economic growth, the value-added way, the Ethical way, the SEEGOS way.