competitive advantage of india and potential threats

1. Indias competitive advantage and
potential threat
By:-Jitendra sahu

2. Competitive Advantage of India
India today is considered to be one of the major forces in the global economic
market. Though India is a developing economy, its economy has a major impact
on global trading. The majority of the world's leading developed nations are
keen to have or expand their ties with India. This is mainly because in the
current scenario of globalization India is seen as a wonderland for investments.
Thanks to its huge market base and fast-developing spending habits of middle-
class Indians, India is a preferred destination for investors over other major
countries, including China, because India has a favorable business environment,
a good administrative setup, attractive foreign policies, and an available,
abundant skilled workforce as well as provides attractive incentives to
investors.

3. India scores over other places in terms of being an ideal destination for
investments mainly due to its vibrant democratic setup, which is aptly
underpinned by a broad legal framework and independent judicial system.
Apart from these factors, the presence of a vast network of bank branches,
financial institutions, and a well-organized capital market contribute to
making India a preferred destination over other places by foreign investors.
India boasts a vast network of technical and management institutions that are
of the highest international standards. These institutions develop excellent
human resources. India also has a strong base of an English-speaking
population for business purposes. The strategic location of the country in the
context of the third world market in the rapidly growing southeastern Asian
markets along with a supportive infrastructure provides India with a
competitive advantage over other countries for attracting foreign investments.

4. It is often speculated that though India is a developing country, why are foreign
investors keen to invest in India and employ the services of Indians? Do the investors
lack knowledge about India's poverty and social issues or does India paint a false picture
about itself in the world market? The truth is neither the investors are ignorant about
the India's social issues nor does India have a false image. The main reason for foreigners
to invest in India more than any other country is that India has the knack to produce
quality goods and services and provide top-class services at a lower cost.
Labor costs in India rise every year and in certain fields, such as software, employees
feel they will not get any further increment on their salaries. This plays a crucial role in
protecting the cost benefits of foreign investors and attracts foreign firms to invest in
India.
Today, there is hardly any big company in the world who does not have their presence in
India in one or the other way. Several companies outsource their accounts and BPO
operations to India. This is mainly because regardless of the domestic issues, these
companies get excellent service and value for the money they invested.

5. Potential threats to india
Threat perception for India is a vast country with sub-continental dimensions, with its
land border touching Pakistan, Afghanistan China, Nepal, Bhutan, Myanmar and
Bangladesh along with the maritime border with Srilanka. With socio-cultural
identities cutting across the borders and colonial legacy it is a bit obvious that there
are some contentious issues with the neighbours.
Among all the neighbours India’s northern neighbour China along with its ‘all-weather
ally’ Pakistan presents the biggest threat perception for India’s national security. The
recent clashes have once again attracted the attention of the world towards a possible
nuclear holocaust. Since South Asia has three nuclear-powered nations any
miscalculation on part of the states may lead to a full-fledged nuclear war as per the
Game theory.
Leave aside nuclear war even conventional wars are likely to cause much damage to
the densely populated nation like India. With the kind of sophisticated weapons all the
three countries possess. The danger of a two-front war is still looming large over India
as the crisis is still not over despite using all the diplomatic channels.

6. Another major threat perception is with respect to the ‘Kashmir issue. Since
the abrogation of Article 370 both Pakistan and China have tried
unsuccessfully to ‘internationalise the Kashmir issue. Pakistan is also
actively supporting various terrorist groups to carry out another Pulwama-
like incident in the valley. China to have tried to raise the Kashmir issue at
the UN Security Council despite it being an internal matter of India.
The recent step by the Indian PM to call for a virtual meeting of all SAARC
members shows the farsightedness of Indian leaders for regional integration
and multilateralism. Since changing geography is not possible India should
be prepared for any unforeseen adventure by the neighbouring country
while also exploiting all the diplomatic and peaceful channels to resolve
disputes.