Finance

Entrepreneurs should tap into opportunity emerged from closure of factories in China: Narayan Rane

According to a Gartner survey of 260 global supply chain leaders in February and March last year, 33 per cent had moved sourcing and manufacturing activities out of China or plan to do so in the following two to three years. (Image: Twitter/Narayan Rane)

Ease of Doing Business for MSMEs: MSME Minister Narayan Rane has urged Indian entrepreneurs to tap into the opportunity that has emerged from the closure of factories in China. Rane, addressing an event at the Entrepreneurship Development Institute of India (EDII) on Saturday, said he has urged promoters of businesses to manufacture goods in India whose production has been shut in China along with marketing those products and exporting them globally.

“Production in China is on top globally. China has a share of 64 per cent of the world’s production but currently, many companies are shutting down (in China) and their production has been stopped. I have urged medium and large entrepreneurs that they should manufacture products in India whose factories were shut in China,” said Rane. Addressing the event on the role of MSMEs in enhancing the country’s growth, the minister added that, “We should also market the production (of these goods) in countries where they are marketed and also export (them). India’s share in world manufacturing is 6 per cent and if we take it to 10-11 per cent, then our GDP will also grow and we would become Atmanirbhar.”

According to a survey by Gartner, Inc. of 260 global supply chain leaders in February and March last year, 33 per cent had moved sourcing and manufacturing activities out of China or plan to do so in the following two to three years. Covid was only one of several disruptions while tariff costs and resilience concerns were primary reasons for businesses to look for alternative locations.

Subscribe to Financial Express SME newsletter now: Your weekly dose of news, views, and updates from the world of micro, small, and medium enterprises

“We have found that tariffs imposed by the U.S. and Chinese governments during the past years have increased supply chain costs by up to 10% for more than 40% of organizations. For just over one-quarter of respondents, the impact has been even higher,” Kamala Raman, Senior Director Analyst, Gartner Supply Chain Practice said in the survey report. “Popular alternative locations are Vietnam, India, and Mexico. The second main reason for moving business out of China is that supply chain leaders want to make their networks more resilient,” Raman had said.

Rane also noted that entrepreneurs must adopt the latest technology and machines for the production of goods that aren’t made in China anymore in order to provide quality products and capture global markets. “A growing industrial environment helps stabilize the society with innovative solutions. It also inspires the younger generation to think creatively. Hence, it is important to focus on the growth of MSMEs.”

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Entrepreneurs should tap into opportunity emerged from closure of factories in China: Narayan RaneFinancial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.


Checkout latest world news below links :
World News || Latest News || U.S. News

Source link

Back to top button