“If we look at what happened in the mobile manufacturing space in India, we have been following the same pattern. So if you look at in terms of the components in some of these network products, its actually an opportunity for us”, he said.
In the course of the the outbreak, several manufacturers have suspended raw material and finished goods purchases from China.
However, typically, from January, owing to the Lunar New Year holiday period, factories slow down production and Indian as well as global procurers typically pre-book their orders and stock up in anticipation of a supply shortfall. In the course of his lecture at the institute, the economist said that the Essential Commodities Act, 1955 needs to be done away with as it is an “anachronistic piece of legislation”.
According to Subramanian, while giving an example of the recent onion and potatoes prices, the Act has lost its relevance and has failed to keep prices under check in difficult times.