Would the Indian economy be one of the fastest to recover from the Covid-19 pandemic?

In the past few months India has seen a tremendous amount of foreign investment injected into the country (approximately USD $20 billion) despite the ongoing pandemic. Some of the major investments are from Google, Facebook, Walmart, Foxconn,Pegatron Corp and Wistron Corp.

However the question arises why are these companies investing in India?

Foxconn, Pegatron Corp and Wistron Corp are major manufacturers of Apple Iphones and due to Apple’s high dependence on China for manufacturing its products Apple has encouraged it’s manufactures to set up operations in other countries as the company has highlighted the fact that having so much of it’s manufacturing capabilities within a single country made it vulnerable, which was seen during the Covid-19 outbreak as factories temporarily closed there, and others were running at significantly reduced capacity.

Google and Facebook have invested a huge sum of their money into India’s technology and e-commerce sector (Reliance Jio) as it offers promising future returns.Other factors which provides strong incentives for these multinationals to invest in India is the availability of a highly skilled labour force, very low language barriers and low costs of production.

Apart from these investments are there any other factors that could contribute towards India’s battle against the ongoing recession?

As we all know scientists across the world are racing against time to find an effective vaccine in order to battle the deadly coronavirus. However finding the cure is only half the battle won, the major concern here is the mass production of the vaccine. This is where India steps in. India is home to the world’s largest vaccine manufacturing company Serum Institute of India.Which means all heads would turn towards India when it comes to the mass production of the vaccine for the whole world. Additionally due to the mass production capability of the Serum Institute of India it incurs the lowest cost of production in the world and hence would be responsible for the wide scale production of the potential vaccine.

So here we have it. To conclude India is most likely to see a hike in its GDP and (hopefully) a fall in its unemployment rate by the end of this pandemic, for which we can give credits to the various investments poured into the country over the past few months and the potential mass production of the vaccine against the coronavirus which would further be exported leading to an influx of foreign currency.