The Big Picture: Localising Globalisation

The dual supply and demand shocks from the Covid-19 pandemic are expected to cause a global recession. In the last several weeks, global supply chains have been disrupted as workers are locked down, factories shut, and closed borders and terminals block supplies and cargo. Aggregate demand has collapsed. The pandemic threatens to usher in a phase of economic insularity, through efforts at localisation of supply chains and stricter immigration controls. On this edition of the big picture we analyse how globalisation is likely to be localised.

Anchor:- Frank Rausan Pereira

Guest Name:-

1- Dr. Arvind Virmani, Chairman, EGROW Foundation & Former Executive Director, IMF

2- Aruna Sharma, Former Secretary, Ministry of Steel, GoI

3- K.A. Badarinath, Senior Journalist

Producer:- Sagheer Ahmad

[scorhigh]

Summary- Localising Globalisation

Trends:
Trade to GDP will go down more than the global financial crisis.
Diversification of supply chain out of China.
Self-reliance may increase- mining, infra constructions

Issues:
Self-reliance will increase but for India the issue will be of higher taxes, credit risks, liquidity, no level playing field.
Every industry will become less labour dependant and more automated.

Way forward:
Cooperative approach with other countries to diversify the supply chain.
FMGC should be given a boost.
Localize the supply chain for raw materials etc. Focus should be on agriculture.
An inward looking policy could hurt global growth- US, EU and Japan open markets.
Dual policy to deal with open markets and other way to deal with the closed ones.
People-centric policies.
Focussed skilling to be competitive.
Enhance domestic consumption.

[upscmagiclamp]

well, the irony of today's debate was we started with localising our few sectors while ended up in globalising with like-minded nations.😅
What I feel the major headwinds for the Indian economy are

1) Availability of capital
2) High cost of credit
3) Complex tax laws
4) High logistical cost
5) Overdependence on government expenditure
6) Weak Corporate bond market
7) Multiple regulators
8) More licenses and lesser clearances
9) Difficulty in acquisitions and mergers
10) lack of skill set and training of individuals (stoping here 🤐)

[ayadouresstalin]

Editors please make sure to eliminate background noise or add subtitles properly. The background noise are very disturbing the very tissues in ear. Please Please make a note of it, suggestion would be if such issues are found immediately stop the session, put a voice recording via phone and add in that segmenting by muting the former sound.

[sanaj]

Key point:
-People centric approach bcoz end of the only people who suffering most.
- Co-operative mechanism need from like minded countries to diversify the supply chain.
-Dual policy to deal with open countries like EU, USA, Japan and closed countries as Gulf countries.

[snr]

Thanq RSTV for hosting a timely food-for-thought programme on self-reliance n concentrate on manufacturing...

[nayeemmollick]

Sir with due respect can u provide subtitles

[tubaafreen]

can you pls provide any news link that shows that countries like Belgium and elsewhere are placing orders in India for the supply of PPEs

[Shub]

gitti uthao, mitti uthao days should be damn hard hit upon mnrega bureaucracy is smart.

[ANANTKUMAR..]

Structural transformation of Indian economy will take time. We have to be practical about the same .
Manufacturing sector's contribution in GDP can be increased from about 18 % currently to 25 % if skill upgradation, capital infusion and better Ease of Doing Business takes place. China is way ahead of India on above parameters.
That said, present crisis is an opportunity to strengthen our manufacturing sector inturn becoming more self reliant.

[Ravi-tmce]

Not enjoying as earlier... Voice is not very good

[aksshaysharma]

It'sbasic etiquette to not have any drink while a discussion is going on, with everyone of video call, it becomes even more distracting. People could delay their coffee for half an hour

[tobeofficer]

I began to understand the debate after listening to 4 to 5 debate

[openmind]

First of all govn should give electricity to small and big companies in less prices so that goods price under control and competitive market and DBT money to the poor and medium class family to maintain liquidity and demand on ways.
MSME grant zero loan so that they create employment, sustainabile and competitive..

[ananyadutta]

Covid-19 is a blessing cum opportunity in disguise for India. we need to ensure required infra for those companies which tend to come in India in the post Covid period.

[Exmuslim_Anwar]

K Badrinath please stop making that sound of shaking spoon in your steel glass while other penalties are speaking. I know you are not doing that knowingly.

[Rahulpriye]

I think we have enough talking..time now really to tap these opportunities due to Covid.convertibility of challenges into opportunities needs proper policy framework & proper implementation.we can't everytime blame china for exporting manufacturing products to the world unless we come up with some alternative.we have already lost so many opportunities & hence don't want to loose this time again.

[sairam-wqbb]

Badarinath keeps repeating the phase "My guess is" which irritates the listeners. Please avoid it in future, if not please avoid him in discussions.