India's Democratic Advantage in Exporting to Europe Gains Traction Amid Supply Chain Shifts
The India-Middle East-Europe Economic Corridor (IMEC) is set to play a significant role in trade, digital connectivity, energy, and food security.
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In the midst of evolving global supply chain dynamics, India's credentials as an exporter to Europe are gaining prominence, driven by its democratic framework and commitment to ease of doing business. Ajay Sahai, Director General and CEO of the Federation of Indian Export Organizations (FIEO), highlighted India's strategic advantage during the UP International Trade Show in Greater Noida.
Sahai emphasized the importance of democratic principles in international trade, asserting that dealing with a country that upholds the rule of law is advantageous. He anticipates that Europe will increasingly rely on India as the profile of exports undergoes transformations.
"From a democratic perspective, it's always better to deal with a country where we have the rules of the law," Sahai stated, assuring businesses of India's reliability over the long term despite initial challenges.
In the wake of disruptions caused by the COVID-19 pandemic, particularly in supply chains linked to China, Western nations, including Europe, have been exploring alternative suppliers. India has emerged as a frontrunner in sectors such as leather, textiles, jewelry, food, electronics, and automotive.
Sahai highlighted India's progress in attracting investments across various sectors, citing Apple's investment in what is set to become its largest manufacturing plant in the country. India is gradually shifting from being a net importer of mobile devices to a significant manufacturing hub.
While India may not extend lavish incentives, it offers unparalleled profitability, making it an attractive destination for businesses seeking a robust ecosystem and favorable conditions for growth.
Beyond trade, the India-Middle East-Europe Economic Corridor (IMEC) is poised to play a pivotal role in digital transformation, digital connectivity, energy security, and food security. This ambitious corridor, recently unveiled at the G-20 summit, aims to reduce transit time by 40% and costs by 30% compared to the existing Suez Canal route, connecting India and Europe via strategic partnerships with the United States, United Arab Emirates (UAE), Saudi Arabia, and European nations.
Ajay Sahai stressed the significance of the IMEC's digital corridor, emphasizing secure data transmission and its role in fostering energy security. As the world evolves towards greater energy and food security, the IMEC is positioned to play a multifaceted role in facilitating trade and cooperation across multiple domains.
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