LyrArc Article Gist
India's challenges in securing $1.3 trillion in capital over 5 years for infrastructure spending. This is needed including capital from the private sector to support government funding, so that India can build the infrastructure to create new manufacturing hubs that compete with China as the world's manufacturing workplace. The Biden administration's determination to compete effectively with China using is own supply chain in Asia, and the EU's plan to follow what the Biden administration does, is likely to create a new kind of environment by 2024-2025 that will create a steady flow of capital to India and other parts of Asia to finance this effort for rebuilding its supply chain. The Biden administration is seeking to build a culture change from the old culture pushed by Reagan type free marketers that delivered lost decades in manufacturing and jobs in manufacturing for the US. Biden's State of the Union message was clear- "Folks we're just getting started. We're just getting started." By 2024-2025 the Adani story may just be a footnote to this story as other manufacturers and investors pick up the infrastructure challenges facing the US, EU and India for a new supply chain for the Free World built around self-reliance. The Ukraine war and China incidents such as one that happened recently, will accelerate the rebuilding of the new supply chain on the part of the US and the EU with partners in Asia. And change decades old assumptions and trade relationships over months, not years.