India’s coronavirus crisis threatens plans for post-pandemic supply chain shift from China
- India’s second coronavirus wave has forced many small manufacturers to reduce operations or temporarily close factories
- The outbreak is also putting pressure on India’s attempts to entice businesses away from China as part of a global supply chain shift
This is the third in a series of stories about the impact of India’s Covid-19 crisis on the Indian and Chinese economies and the global initiative to restructure supply chains.
For Manpreet Singh, who runs a footwear export company near Mumbai, a new wave of Covid-19 infections that is ravaging India is more than a devastating case of déjà vu.
“This wave is much more infectious and spreading fast,” Singh said. “Business has been affected since last month. Until then we were working and getting back on our feet.”
Only 15 of the company’s 125 employees in three manufacturing facilities near Mumbai, India’s largest city, are currently working. The rest have chosen to stay in their hometowns.
On top of labour problems, small exporters like Singh are grappling with supply shortages and rising raw material costs, as widespread lockdowns hit freight networks across the vast country.
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Indian village offers Covid-19 patients alternative medicine treatment under tree