Fearing A Fresh Blow

It’s early days to assess the impact of geopolitical tensions between China and Taiwan on the supply chain. Ashish Bhatia looks at the repercussions feared.

- Ashish Bhatia

Geopolitical tensions have proved to be disruptive, to say the least! With the dust from the Russia-Ukraine crisis yet to settle six months and counting, the industry could have to deal with the prospects of a fresh body blow to the supply chain. The geopolitical tensions between China and Taiwan could pose a new challenge to trade. We’ve stressed in the past, how conflicts have all the makings of a case study for businesses. It reassures the need to have in place, a plan B that can be pressed into action with agility to limit the losses. Sparing none, these conflicts, until the recent past, have had a detrimental impact on the growth trajectory of nations including the EU, the West and South Asian countries like India that find themselves in the advanced stages of a recovery cycle, in the aftermath of the pandemic. The components industry, as per Sunjay Kapur, President, ACMA and Chairman at Sona Comstar is at pre-pandemic levels clocking the highest-ever turnover of Rs. 4.2 lakh crore (USD 56.5 billion). This surpasses the previous peak turnover (inclusive of the aftermarket) of Rs.3.95 lakh crore in FY18-19. It is a 23 per cent growth in FY 2021-22 over the previous fiscal.