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 An Integrated Effect and Impact of
COVID-19
on Trade and Commerce in The World
 An Integrated Effect and Impact of
COVID-19
on Trade and Commerce in The World

Edited By:

Prof. S.K. Baral

Department of Commerce,
Faculty of Commerce and Management,
Indira Gandhi National Tribal Central University,
(A Central University), Madhya Pradesh, India
&
Dr. Durga Madhab Mahapatra
Faculty in Commerce, P.G. Department of Commerce,
Fakir Mohan Autonomous College, Balasore, Odisha, India

N. B. PUBLICATIONS
Ghaziabad - 201102 (India)
N. B. PUBLICATIONS
SF-1, A-5/3, D.L.F, Ankur Vihar,
Loni, Ghaziabad-201102, U.P. (India)
Phones: 8700829963, 9999829572
E-mail: nbpublications26@gmail.com

An Integrated Effect and Impact of COVID-19

on Trade and Commerce in The World

© Editors

First Published 2021

ISBN: 978-93-89234-86-2

[All rights reserved. No part of this publication may be reproduced, stored

in a retrieval system or transmitted, in any form or by any means, mechanical,
photocopying, recording or otherwise, without prior written permission of
the publisher].

Published in India by N. B. Publications, and printed at

Trident Enterprises, NOIDA, (U.P.)
 PREFACE

The Covid-19 outbreak is a sharp reminder that

pandemics, like other rarely occurring catastrophes, have
happened in the past and will continue to happen in the
future. Even if we cannot prevent dangerous viruses from
emerging, we should prepare to dampen their effects on
society. The current outbreak has had severe economic
consequences across the globe, and it does not look like
any country will be unaffected. This not only has
consequences for the economy; all of society is affected,
which has led to dramatic changes in how businesses act
and consumers behaviour.
The coronavirus outbreak has forced companies to
reevaluate how contact centers are leveraged, how
employees deliver relevant customer experiences, where
they work, and how digital channels can be used to support
business continuity through the crisis and beyond.The
global Covid-19 pandemic has forever changed our
experiences—as customers, employees, citizens, humans—
and our attitudes and behaviors are changing as a result.
The crisis is fundamentally changing how and what
consumers buy and is accelerating immense structural
changes in the consumer goods industry, for example. Once
the immediate threat of the virus has passed, companies
will need to consider the impact of these changes on the
way we design, communicate, build and run the
experiences that people need and want.
 (vi)

With these emerging new behaviors, organizations have

an opportunity to accelerate the pivot to digital commerce,
by expanding existing offerings and creating new lines of
service, like the retailers rallying to provide “contactless”
delivery and curb-side pick-up services for consumers. This
acceleration will force organizations to reimagine their
digital strategies to capture new marketplace opportunities
and digital customer segments.
Organizations globally are experiencing unprecedented
workforce disruption. Virtually all companies are still
determining how we will work in the short- and long-term,
as workforces and communities try to function and
perform, while struggling to cope with what is happening
in their daily lives. It is seen across industries are rising to
the challenge, helping people and organizations navigate
massive workforce shifts, such as the urgent need to shift
to a remote workforce to protect and empower employees,
serve customers and to establish business continuity. For
example, the now critical need for virtual care messaging
and visits in healthcare and expertise in developing agile
workforce strategies is critical to keeping the global
economy viable and helping people and their families
survive financially now and in the future. Opportunities
are emerging as companies and industries work together
to keep people working. Now, leading companies to
create People-plus-Work  Connect,  an  analytics-based
platform that facilitates continued employment.
People, organizations and communities need fit-for-
purpose plans today that can evolve as the global health
and economic enviro nment changes. Businesses,
governments, citizens, and non-profits all play critical roles
in establishing a human-centered, systems-minded
approach that promotes shared workforce resilience.
With the Covid-19 crisis, fundamental changes in
consumer behavior, supply chains, and routes to market
 (vii)

are knocking companies off balance. Responding to the

pandemic has underscored the need for leaders to accelerate
the adoption of agile ways of working and value chain
transformation to help outmaneuver uncertainty. Becoming
an Intelligent Enterprise means shifting from top-down
decision-making, empowering teams guided by purpose,
driven by data, powered by technology and enabled by
cloud for faster speed to market. It calls for razing rigid
structures and creating a porous organization with modules
that plug and play. The Intelligent Enterprise is capable of
dynamic self-management and continual adaptation. It is
built for agility, resiliency and growth.
Adopting a distributed global services model can also
help large organizations across industries—from oil and
gas to communications  and  media—to  diffuse  enterprise
risk. Automating routine tasks with human-plus-machine
models, where everyone is a knowledge worker, can also
help to serve businesses now, and to position them for
growth post-Covid-19. And now, more than ever, the supply
chain is critical. Companies need to develop a rapid response
to address current disruptions and to repurpose and
reshape supply chains for the future by increasing both
resilience and responsibility.
In the face of the Covid-19 crisis, leaders have had to
act quickly to optimize their company’s resilience—
rebalancing for risk and liquidity, while assessing
opportunities for growth coming out of the downturn.
Current and future viability depend on swift C-suite action,
including near-term actions for stability and strategic moves
that will create new futures for companies and industries.
Immediate action is needed to address short-term
liquidity challenges, but also to solve for costs and
profitability and generate funding to invest in new
opportunities, including M&A. Many CEOs are faced with
plummeting sales and revenue and increased costs.
 (viii)

Interventions to adapt may require investments in key

technologies, processes and people. For some, liquidity has
become a matter of survival. Actions taken now can have
an immediate impact on the survival of the company, how
quickly it rebounds from the global downturn, and its
financial health and sustainability going forward.
Even before Covid-19, many organizations faced
considerable IT challenges. Now, Covid-19 is pushing
companies to rapidly operate in new ways and IT is being
tested as never before. As businesses juggle a range of new
systems priorities and challenges— business continuity
risks, sudden changes in volume, real-time decision-
making, workforce productivity, security risks—leaders
must act quickly to address immediate systems resilience
issues and lay a foundation for the future. Leaders in
the chemicals  industry,  for  example,  are  recognizing
resilience as a key success factor. Once we reach the other
side of this pandemic, it will be important to establish long-
term strategies for greater resilience and to apply lessons
learned from the experience to create a systems and talent
roadmap that better prepares your company for future
disruptions.
All industries have been impacted by the Covid-19
crisis, with varying degrees of severity. Some have stronger
defenses, while others will struggle to return to a constantly
shifting “normal.” Consumer demand patterns are shifting,
global supply chains are disrupted and remain under
pressure, and different regions, markets and governments
are responding uniquely to the Covid-19 crisis. Companies
must continuously adapt to new and uncertain market
conditions. Informed by daily conversations with our clients,
we offer industry-specific advice on what leaders should
consider doing now and next. Many organizations are
already taking “no regret” actions to emerge from the
pandemic stronger. These leaders are facing the crisis with
 (ix)

a spirit of reinvention—accelerating digital transformation,

establishing variable cost structures, and implementing
agile operations.The global Covid-19 pandemic is exacting
a terrible human toll and menacing the world economy.
Across industries, companies should act now to protect their
employees and customersand prepare now for the world
beyond coronavirus.
This edited book is equipped with 10 rich articles to
deal with the present and futuristic conditions of aftermath
periods of Covid-19. Our writer-contributors have
differently attempted to trigger the minds of readers on
issues concerning due to Covid-19 and its impact on trade
and commerce in India and rest of the world. Dear readers,
remember ‘time’ never moves; it is we, who move to grow
poorer or ri cher, po werful o r weak, conscious or
unconscious, may be from pandemic (Covid-19) to non-
pandemic situation globally.
At last, we do express our sincere thanks to Shri Prem
Singh Bisht of N.B. Publications, Ghaziabad / Kunal
Books (A renowned academic publishing house), New
Delhi, India for their valued support in bringing out this
edited book in time.
Editors
 LIST OF CONTRIBUTORS

1. Khatima Amakaaz, Scholar, Minot State University,

Minot, North Dakota, USA.
2. Prof. James Ondracek, Minot State University, Minot,
North Dakota, USA.
3. Prof. Mohammad Saeed, Universiti Tun Abdul Razak,
Kuala Lumpur, Malaysia.
4. Prof. Andy Bertsch, Minot State University, Minot,
North Dakota, USA.
5. Eric Balan, Lecturer, Universiti Tun Abdul Razak,
Kuala Lumpur, Malaysia.
6. Dr. V. Sheela Mary, Pro fessor, Department of
Management, AarupadaiVeedu Institute of
Management, Vinayaka Missions Research Foundation
(Deemed to be University), Ariyanur, Tamil Nadu,
India.
7. Mr. T. Thangaraja, Assistant Professor, Department
of Management, Aarupadai Veedu Institute of
Management, Vinayaka Missions Research Foundation
(Deemed to be University), Ariyanur, Tamil Nadu,
India.
8. Sandeep Kumar, Assistant Professor in Computer
Science, Patel Institute of Management & Technology,
Rajpura, Punjab, India.
 (xii)

9. Mamta Sharma, Assistant Professor in Management,

Patel Memorial National College, Rajpura, Punjab,
India.
10. Dr. Ruchi Mehrotra, Assistant Professor-SG, School
of Law, UPES, Dehradun, Uttrakhand, India.
11. Ms. Deepali Yadav, Assistant Professor, School of
Engineering, UPES, Dehradun, Uttrakhand, India.
12. Rajwinder Kaur, Research Scholar, Chandigarh
University, Gharuan (Mohali), Punjab, India.
13. Ms. Sangeeta Rani, Assistant Professor in Commerce,
Government College, Israna, Panipat, Haryana, India.
14. Renuka Kumar, Academic Consultant (Social Work)
DDCE, Utkal University, Bhubaneswar, Odisha, India.
15. Pragyan Paramita, Academic Consultant (Hindi)
DDCE, Utkal University, Bhubaneswar, Odisha, India.
16. Jyoshna Dash, MSW Student, DDCE, Utkal
University, Bhubaneswar, Odisha, India.
17. Prof. (Dr.) Ramesh Chandra Rath, Dean (R&D) and
HOD-MBA at Guru Gobind Singh Educational Society’s
Technical Campus, Chas, Bokaro Steel City, Jharkhand
University of Technology (JUT) Ranchi, India.
18. Ms. Monalisa Pattanayak, Assistant Professor,
Department of Basic Science and Humanities, MITS,
(Affiliated to BPUT Rourkela, Odisha, and approved
by AICTE, Govt. of India, New Delhi) Raygada, Odisha,
India.
 (xiii)

CONTENTS

Preface v
List of Contributors xi
1. Case Study: COVID-19: Apple Inc. and the
Path to Resiliency 1
Khatima Amakaaz, Prof. James Ondracek,
Prof. Mohammad Saeed & Prof. Andy Bertsch
2. India and China: Do they Need Each other, or
Can they Live Apart? - A Post COVID-19
Perspective 20
Eric Balan & Prof. Mohammad Saeed
3. Unemployment Rate Due to the COVID-19 –
A Study Report 34
Dr. V. Sheela Mary & T. Thangaraja
4. A Study on the Changes Perspective of Indian
Higher Education System from Ancient
Times to COVID-19 44
Sandeep Kumar & Mamta Sharma
5. Impact of COVID-19 on Indian Power Sector 55
Dr. Ruchi Mehrotra & Ms. Deepali Yadav
6. Impact of Covid-19 on Higher Education Sector:
Evidence from Higher Education Institution
Professionals 69
Rajwinder Kaur
 (xiv)

7. A Study of the Role and Opportunities of

MSME in Post Covid-19 Era in India with the
Students Prospective 82
Ms. Sangeeta Rani
8. Online Learning: An Overview from
Post-Graduation Students of DDCE,
Utkal University 96
Renuka Kumar, Pragyan Paramita & Jyoshna Dash
9. A Sustainable Strategic Planning for
Development of Local Tourism Market in
Post Pandemic COVID-19 114
Prof. (Dr.) Ramesh Chandra Rath &
Ms. Monalisa Pattanayak
Index 130
 CHAPT E R

1
Case Study: COVID-19: Apple
Inc. and the Path to Resiliency
Khatima Amakaaz, Prof. James Ondracek,
Prof. Mohammad Saeed & Prof. Andy Bertsch

Case Perspective
This case has been developed as a basis for academic
discussion and analysis of the pertinent issues from divergent
angles, in an objective manner, rather than to illustrate handling
of any business or management situation. The case is based
on the information publicly available through company annual
reports, brochures, leaflets, newspapers, magazines,
government and institutional reports, websites, and other
such material. All the sources are gratefully acknowledged.
As the case has been prepared for an academic purpose, the
stakeholders and other interest groups should not use any
information for drawing any conclusion or opinion about any
company or business issue.

Dealing with Uncertainties

Since it was founded in 1976, Apple has been constantly
growing and dominating the technology sector. Apple has
revolutionized personal technology and became the world’s
2 An Integrated Effect and Impact of COVID-19

most valuable brand providing some of the most innovative

and sophisticated products in the market. The company has
built a strong brand image, loyal customer base and reached
a high profit margin. In 2018, Apple became the first American
publicly traded company to hit a $1 trillion stock market
capitalization after many consecutive years of profitability.
The fiscal year 2020 seemed very promising at first as the
company announced that it has generated the highest quarterly
Revenue ever in the first quarter ended on December 28, 2019
(Apple Press Release, 2020). The celebration of this
achievement and strong performance was soon interrupted
by news about a mysterious outbreak that has left Tim Cook,
Apple Inc. CEO, uncertain about the duration and the degree
of the pandemic’s impacts on Apple’s operations and financial
performance.
The Coronavirus outbreak has disrupted Apple’s
production and introduction of new products. Although Apple
has been through many challenges in the past such as leadership
change and charges that it intentionally slowed performance
of old iPhones, the Company has successfully dealt with
the issues and was able to persist and continue growing.
However, this time the challenge is new, unanticipated, and
unprecedented.
When factories in China started to shut down and the
World Health Organization (WHO) announced a global health
crisis, the effectiveness of current business operations became
ambiguous and unpredictable. Cook recognized that the
Company is facing enormous challenges. As he was using his
iMac to send a memo to his team about working remotely,
Cook’s Apple watch reminded him to stand up to reach his
Stand goal for the hour. As he got ready to do so, he paused,
and stared at the pictures of Apple Stores hung on his office’s
wall, and wondered for how long these stores would remain
closed. Then Cook walked toward his office window, looked
out, and thought about the degree of the outbreak’s impact
Case Study: COVID-19: Apple Inc. and the Path to Resiliency 3

and contemplated decisions that need to be made. As he

looked again at the pictures of Apple Stores, Cook knew that
many changes are required and questioned how Apple could
avoid missteps and continue to grow in the face of serious
constraints.

The COVID-19 Outbreak

In late December 2019, the Wuhan Municipal Health
Commission in China informed the World Health Organization
(WHO) about cases of mysterious pneumonia that were later
identified as Novel Corona virus (COVID-19) (WHO Timeline
- COVID-19, 2020). The COVID-19 virus is an infectious disease
that causes respiratory illness and spreads through close
contact from person to person or from contact with
contaminated objects and surfaces (CDC, 2020). In the absence
of treatment or vaccines, the virus is spreading rapidly and
becoming a global crisis and a human tragedy forcing
governments and businesses worldwide to take
unprecedented measures such as travel restrictions, physical
distancing, closure of non-essential businesses, and shelter-
in-place to slow-down the spread of COVID-19. These
measures are expected to considerably impact the United
States and the world’s economic activities. On January 30,
2020, the WHO declared a global public health emergency
(WHO, 2020). As of May 10, 2020, the virus has impacted over
200 countries, infected over 4 million people worldwide, and
caused over 280,000 fatalities (World O Meter, 2020). United
States alone reported over 1.4 million cases and a death toll of
more than 100,000.
The first known cases of coronavirus were emerged in
Wuhan; the Chinese epicenter of this outbreak. Wuhan is
considered a significant transport and business hub for China
and many world’s giant corporations that do business in
Wuhan. The city is a major financial hub and trade center for
central China and is hosting the headquarters of some major
4 An Integrated Effect and Impact of COVID-19

steel and vehicle makers. In addition, Wuhan is home to more

than 300 factories of the world’s largest 500 companies,
including Microsoft (Ayittey et al., 2020). As the coronavirus
pandemic spread in Wuhan, many factories and suppliers
were forced to shut down which slowed down China and the
world’s economy? China reported a 6.8 percent shrinkage in
its economy during the first quarter of 2020 and the country’s
growth for this year expected to be 2.5 percent compared to
6.1 percent growth in 2019 (Kuo, 2020).

The Technology Industry and Response to COVID-19

With over 300 million people, United States is considered
the largest economy in the world and offers the largest
consumer market with a Gross Domestic Product (GDP) of
over $20.5 trillion. The country’s real GDP grew by 2.1 percent
in fourth quarter of 2019 and decreased 4.8 percent in the first
quarter of 2020 due to the response to COVID-19 outbreak
(Bureau of Economic Analysis, 2020).
As the majority of states’ governors have directed
businesses deemed non-essential to close, the economic, social
and psychological costs were expected to be enormous. The
closure of these businesses is anticipated to affect the GDP
growth rate and the unemployment rate. The unemployment
rate decreased in 2019 to 3.7 percent; however; due to COVID-
19, the rate is expected to increase to 10.4 percent in 2020 and
decrease somewhat to 9.1 percent in 2021 (Trade Markets,
2020). In March 2020, the Federal Open Market Committee
had a meeting to mitigate the COVID-19 pandemic’s impacts
on the U.S. Economy by lowering federal funds rate to a
range between 0.0 percent and 0.25 percent after it was
lowered to a range between 1.0 percent and 1.25 percent on
March 3, 2020 (Amadeo & Berry-Johnson, 2020). On the other
hand, the inflation rate will average 1.9 percent in 2020 and
will rise to over 2.0 percent in 2021. The U.S. central bank will
maintain the current interest rate between 0 percent and 0.25
Case Study: COVID-19: Apple Inc. and the Path to Resiliency 5

percent until full employment returns and inflation gets back

to near 2.2 percent (Cox, 2020).
The United States is known for its technological progress.
Some of the most recent and advanced technological
revolutions are Artificial Intelligence (AI), 5G data networks,
autonomous driving, personalized and predictive medicine,
practical deployment of Internet of Things (IoT), and computer
vision (Marr, 2019). These technological advancements are
expected to cause an increase in laws, regulations, and changes
in social attitudes. Privacy and regulation will be a challenge
for technology companies now and in the upcoming years.
The technology industry is very dynamic, mature, and
“characterized by frequent product introductions and rapid
technological advances that have substantially increased the
capabilities and use of smartphones, personal computers,
tablets and other electronic devices” (Apple Inc. Form 10-K,
2019, p. 2). The industry is large and with global market
expansion, competition is becoming aggressive and intense
(Berg, 2019).
The technological advancement are fascinating and
electronic products provide extraordinary experience to
individuals, which has led to an exceptional growth in the
consumer electronic products and accessories market
(Competitors.co, 2020). COVID-19 crisis has emphasized the
significance of technology to save the public and private sectors
from falling apart. Many big and smaller businesses have
leveraged technology to continue their operations and
everyday processes (Gauthier, 2020).

Samsung
Samsung is a multinational company founded in 1938 and
headquartered in Seoul, South Korea. Samsung is one of the
most valued technology companies in the world and is the
leader in the smartphone category with a market share of
6 An Integrated Effect and Impact of COVID-19

31.49 percent (Competitors.co, 2020). Samsung’s portfolio is

very diversified and includes retail, insurance, electronics,
appliances, telecommunication equipment, etc. Samsung
predicts that the demand for its products will decrease during
this pandemic.
Samsung has reported that mobile shipments fell as
COVID-19 impacts started taking effect globally toward the
end of the quarter. The TV segment Earnings have declined
as the market experienced a slowdown in demand, yet the
sales of premium products have increased. On the other hand,
the “Profitability stayed sound backed by improved product
mix with launches of flagship models, such as S20/Z Flip
alongside efficient execution of marketing resources, Earnings
improved as 5G commercialization expanded in Korea and
abroad” (Earning Release Q1 2020, 2020, p. 4).
In 2019, Samsung Electronics has generated $230.4 Trillion
in Revenue and $21.5 Trillion Net Income; however, The
Company has announced that in the first quarter of 2020, its
Revenue fell about 7.6 percent from the previous quarter
(Shu, 2020). The COVID-19 outbreak will continue to impact
Samsung’s “business for the rest of the year, cutting into sales
for smartphones and TVs, but increasing demand for PCs,
servers and memory chips as people continue to work or
study from home” (Shu, 2020, para. 1).
Samsung expects the competition to intensify, as every
firm will try to recover and ease the impact of CODIV-19 on
its performance. Samsung plans to outperform the competitors
by launching premium products such as Note devices, Galaxy
Fold devices, and expand 5G Network. To overcome the
negative impacts of COVID-19, Samsung will pursue flexible
investments, amend its product mix to acclimatize to the
current market conditions, increase it online sales capabilities,
improve supply network, and provide tailored promotions to
stimulate sales (Shu, 2020).
Case Study: COVID-19: Apple Inc. and the Path to Resiliency 7

Source: Samsung Electronics’ Earning Release Q1 2020.

8 An Integrated Effect and Impact of COVID-19

Microsoft
Microsoft is a publicly traded multinational company
founded in 1975 by Bill Gates and Paul Allen. Microsoft
designs, manufactures, licenses and sells consumer electronic
products, accessories and computer software and related
services (Competitors.co, 2020).
In fiscal year ended June 2019, Microsoft Corp.’s Net
Income was $39.24 Billion, and its Revenue was $125.50 Billion.
The company’s sales grew by 13.9 percent in 2019. The COVID-
19 had a slight impact on Microsoft’s performance. The
Company reported that it has seen two years’ worth of digital
transformation in the past two months as the demand for
remote learning, online sales, customer service, cloud
infrastructure, and security has increased (Microsoft Investor
Relations, 2020).
As more cities quarantined, businesses and schools closed,
and consumers shifted to work remotely, the demand for
Microsoft’s Productivity and Business Processes and Intelligent
Cloud segments increased this quarter, “particularly in
Microsoft 365 including Teams, Azure, Windows Virtual
Desktop, advanced security solutions, and Power Platform,
as customers shifted to work and learn from home” (Microsoft
Investor Relations, 2020, p. 1).
As a result of this increase in demand for Microsoft
services, the company reported that its revenue increased by
15 percent ($35.0 billion), operating income increased by 25
percent, net income increased by 22 percent and the diluted
earnings per share increased by 23 percent (Microsoft Investor
Relations, 2020).
 Financial Performance Constant Currency Reconciliation
Three Months Ended March 31,
($ in millions, except per share amounts) Revenue Operating Net Income Diluted Earnings
Income per Share
2019 As Reported $30,571 $10,341 $8,809 $1.14
2020 As Reported $35,021 $12,975 $10,752 $1.40
Percentage Change Y/Y 15% 25% 22% 23%
Constant Currency Impact $(404) $(296) $(375) $(0.05)
Percentage Change Y/Y Constant Currency 16% 28% 26% 27%

Segment Revenue Constant Currency Reconciliation

Three Months Ended March 31,
($ in millions) Productivity and Intelligent More Personal
Business Processes Cloud Computing
2019 As Reported $10,242 $9,649 $10,680
2020 As Reported $11,743 $12,281 $10,997
Percentage Change Y/Y 15% 27% 3%
Constant Currency Impact $(162) $(164) $(78)
Case Study: COVID-19: Apple Inc. and the Path to Resiliency

Percentage Change Y/Y Constant Currency 16% 29% 4%

9

Source: Microsoft Investor Relations, Earning Release FY 20 Q3.

10 An Integrated Effect and Impact of COVID-19

Apple Inc.: Background

Apple Inc. was founded on April 1, 1976 by Steve Jobs
and Steve Wozniak and was officially registered in 1977. Apple
Inc. is a leading technology brand specialized in manufacturing
and designing personal computers, tablets, wearable’s and
smartphones. The company also provides various services
such as iCloud, Apple Care, and digital contents. Apple Inc. is
a company that is focused on innovation and operates in an
industry that is known by the rapid technological advances.
Apple Inc. recognizes the importance of innovation and
launching new products; therefore, the company continues
to invest in Research and Development (R&D) to ensure a
constant and timely introduction of competitive services and
products (Form 10-K, 2019, p. 5). Apple Inc. frequently files
patent applications and holds many intellectual property rights
such as trademarks, copyrights and patents. Apple Inc. believes
that intellectual property rights is essential to protect its
innovations and products and ensure its continuous business
success (Form 10-K, 2019, p. 5).
Apple Inc. employs direct and indirect distributions
channels to sell its products to its customers. Through its
retail stores and online stores, Apple Inc. sells its products
directly to its individual consumers, educational institutions,
small and mid-size businesses, and government customers
(Form 10-K, 2019, p. 2). The Company also sells its products
and services through indirect distributions channels such as
“third-party cellular network carriers, wholesalers, retailers
and resellers” (Form 10-K, 2019, p. 2).
Apple’s generic strategy for its extensive products and
services is differentiation. The company differentiates its
products and services by keeping the exceptional customer
experience, simplicity, and unique design in mind. Apple Inc.’s
strategy focuses on the design and functionality of its products,
strengthening Apple ecosystem, and reducing the dependency
Case Study: COVID-19: Apple Inc. and the Path to Resiliency 11

of the business on the sales of iPhones (Dudovskiy, 2019). The

company implements a growth strategy to create competitive
advantages and reinforce its position in the market by
developing products, using market penetration, and market
development (Meyer, 2019). Apple’s corporate-level strategies
include diversification, strategic alliances and inter-
nationalization (Berg, 2019).
Apple Inc. is leading the technology industry as it has
many core competencies that give it a robust competitive
advantage. The company has a strong and unique business
model that is focused on rapid and frequent innovation,
product quality and reliability, and exceptional customer
experience. Apple has managed to attain and maintain rare
competencies that are valuable (V), rare (R), costly to imitate
(I), and organized (O) so the advantages can be captured.
Competencies V R I O Competitiveness
Simplicity X Competitive Parity
Product Line X X X X Competitive Advantage
Employee Benefits X X Temporary Competitive Advantage
Research and Innovation X X X X Competitive Advantage
Global Brand Image / X X X X Sustainable Competitive Advantage
Reputation / Perception
Distribution Channels X Competitive Parity
Quality and Reliability of X X X X Sustainable Competitive Advantage
Products

Apple Inc.’s Performance and COVID-19 Impacts

In fiscal year 2019, Apple Inc. has generated $259.97 Billion
in Revenue and $55.6 Billion Net Income (Apple Inc. Form 10-
K, 2019). Apple’s second quarter ended on March 28, 2020;
during this period, the Company has reported Revenue of
$58.3 billion, which is 1 percent increase from March 30, 2019.
12 An Integrated Effect and Impact of COVID-19

Source: Apple Inc. Q2 Form 10-Q, 2020.

Case Study: COVID-19: Apple Inc. and the Path to Resiliency 13

The iPhone Revenue was down 7 percent to $28.96 billion,

iPad Revenue was $4.36 billion, Mac Revenue $5.35 billion,
services Revenue was up to $13.34 billion, and Wearable’s,
Home, and Accessories Revenue was up by 23 percent to
$6.28 billion (Apple Inc. Q2 Form 10-Q, 2020).
Apple’s stock has dropped 10 percent over the first three
months of 2020 as the Dow Jones Industrial Average has lost
20 percent of its value (Bary, 2020). The quarterly earnings
per diluted share was $2.55. “Apple’s board of directors has
declared a cash dividend of $0.82 per share of the Company’s
common stock, an increase of 6 percent. The dividend is payable
on May 14, 2020 to shareholders of record as of the close of
business on May 11, 2020. The board of directors has also
authorized an increase of $50 billion to the existing share
repurchase program” (Apple Press Release, 2020, para. 4).
Apple leads the smartphone market in United States with
54.25 market share followed by Samsung that controls 26.79
percent of the market share (Competitors.co, 2020). Apple
has loyal customer base that consist of small and mid-sized
businesses and educational institutions, enterprise and
government customers. Apple has been successful in
controlling and retaining its large market share. Apple Inc.
“manages its business primarily on a geographic basis. The
Company’s reportable segments consist of the Americas,
Europe, Greater China, Japan and Rest of Asia Pacific. The
reportable segments provide similar hardware and software
products and similar services; each one is managed separately
to better align with the location of the Company’s customers,
distribution partners, and the unique market dynamics of
each geographic region” (Apple Inc. Q2 Form 10-Q, 2020, p.
22).
The following table shows information by reportable
segment for the three- and six-month periods ended March
28, 2020 and March 30, 2019 (in millions).
 14

Source: Apple Inc. Q2 2020 Form 10-Q, 22, 2020.

An Integrated Effect and Impact of COVID-19
Case Study: COVID-19: Apple Inc. and the Path to Resiliency 15

The COVID-19 pandemic has affected Apple and caused a

decline and delays in its products’ production as factories in
China and other countries shutdown. Apple’s retail stores
were closed globally in Asia, United States, and Europe.
However, the company continues to provide products and
services online through its App Store, support site, and Apple
online store, and it is committed to providing exceptional
service to its customers. The physical stores will continue to
re-open as the lockdown measures ease (Apple Newsroom,
2020). In the second quarter of 2020, Apple has released
updated iPad Pro and MacBook Air. In addition, the company
has launched iPhone SE on April 24, 2020.
Apple Inc.’s assembly factories in China have experienced
critical disruptions, which has led to limited supply of iPhone
and AirPods. While China started to get back to speed and
operations are slowly resuming, Apple’s suppliers and
manufacturers in other parts of the world are reporting below
capacity operations or a temporary halt of all production
activities. Jabil Inc., the maker of iPhone casings, has reported
that some of its plants are running 5 to 10 percent below
capacity (Bloomberg, 2020). On the other hand, “Murata
Manufacturing Co., Renesas Electronics Corp. and Ibiden Co.,
which make chips and circuit boards for Apple, have halted
production” in Malaysia (Bloomberg, 2020). Moreover, Apple
operations in Italy, United Kingdom, and South Korea were
impacted.
During this pandemic, Apple Inc. moved to provide flexible
working arrangement for its employees worldwide. For those
employees who are required to report, Apple Inc. will ensure
their safety by implementing strategies to minimize physical
contact, increase social distancing in the office, and ensure
frequent and extensive cleaning at all sites (Apple Newsroom,
2020). The company has also extended the leave policies for
its employees to deal with situations created by COVID-19,
including quarantine orders, school closures, or recovering
16 An Integrated Effect and Impact of COVID-19

from an illness (Apple Newsroom, 2020). Moreover, Apple

has donated $15 million worldwide in an effort to respond to
COVID-19, released “a mobility data trends tool from Apple
Maps to support the impactful work happening around the
globe”, and launched “a joint effort with Google to enable the
use of Bluetooth technology” (Apple Newsroom, 2020, para.1).

Recovery and Building Resiliency

The corona virus has caused major disruptions in supply
chain and other economic activities; about 75 percent of
companies have experienced supply chain disruptions and
over 80 percent are expecting some challenges as COVID-19
continues to spread (Boyd, 2020). Many manufacturers in
China have experienced a shortage in labor as people were
ordered to stay at home and the operations were running at
50 percent capacity (Boyd, 2020). The production and order
fulfillment lead-time have almost doubled due to
transportation restrictions that have limited the air and ocean
freight to get products and supplies to the United States.
Corona virus outbreak created many challenges for almost
every business in the world. There is no doubt that the future
will be different and many changes to strategies and business
models will be implemented but how, when or what needs to
be done for Apple to overcome the many challenges and
avoid missteps?

References
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marketwatch.com/story/apple-in-the-age-of-covid-19-can-
new-iphones-be-made-and-who-will-buy-them-2020-04-06
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supply-chain-woes-linger-even-as-china-recovers
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c8d2
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timeline—covid-19
World Population. (2020, May). Retrieved from https://world
populationreview.com/countries/unitedstates-population/
20 An Integrated Effect and Impact of COVID-19

CHAPT E R

2
India and China: Do they Need
Each other, or Can they Live
Apart? - A Post COVID-19
Perspective
Eric Balan & Prof. Mohammad Saeed

Abstract
The 2020 United Nation General Assembly (UNGA), India and
China made its global address. Of the many issues, they both touched
on the COVID-19 pandemic. India made its mark on emphasising its
role in combating the virus and China made global commitments in
aiding the battle. A testament of true statesman addresses. However,
India and China are battling another enemy, its borders, and they had
been at it for decades Unresolved. As the world accelerates towards
recovery and vaccination, not much can be said of the India-China
relationship. Ironically, both are working together in battling the
pandemic, but are seen divided on matters pertaining towards global
economy, the role they play in the world, and globalization reform
structures. This study looked at the relationship of India and China
at the point of UNGA and post COVID-19. Based on historical
association and ongoing trade bilateralism, India and China are tattered
over a common issue. In a post pandemic world, they would emerge
India and China: Do they Need Each other, or Can they Live... 21

stronger with each other rather than being apart, but it is subject to
foreign interferences, India’s veto powers on the security council and
the US-China influences. From Nehru and Mao, to Modi and Xi,
this unwavering relationship witnessed changing headwinds for seven
decades, but now the winds are again changing.
Keywords: India-China Relationship, COVID-19, Trade
Bilateralism, Infrastructure Development, Economic Association.

Introduction
The two oldest and largest civilization ever known to
mankind has broke barriers in leaps and bounds. They were
ancient empires of ingenuity, explorers, and merchants. Today,
they both hold a candle to each other in the advancement of
the sciences, the mastery of trade, and in diplomatic affiliations.
India’s GDP hovers around the $3 trillion mark, and China at
$14 trillion. In the decades of the 19th and the 20th century,
both these countries suffered tremendous humiliation. India
had to deal with colonization, and China had the opium war
and the ousted dynasty. On equal footing, their independence
out of imperialism were only two years apart. India gained
independence in 1947, and China was liberated into a people’s
republic in 1949. From the point of 1950, both of these poor
nations have been ensuing its own course of development,
managing resources for its population in the millions who
many were desolates, forging oneness across its vast lands,
and suppressing internal political disagreements.
It was challenging times for both Jawaharlal Nehru and
Mao Zedong. The three meetings comprising of four-and-a-
half hours on the cosy autumn of October 1954, Nehru and
Mao spoke about what to make of post WW2. They tried to
make sense of how the two are to live with each other. They
were finding common consensus of a future that both would
see mutual rise of possibilities. Nehru commented that both
India and China must play a bigger role in Asia and that the
scale of growth used by the west may not necessarily fit the
22 An Integrated Effect and Impact of COVID-19

ideologies and the future of the east. Mao mentioned in that

meeting that a break of a possible third world war could have
had shattered India and China in the hundreds of millions,
but it would not sink both to the floor. He was emphasizing
resilience in the people, and gone were the days of old
outlandish imperialistic controls (Mukherjee, 2010). The future
is in the hands of its people, both for India and China.
Unequivocally India and China knew that they had to
strategically develop out of their impoverish situation and
work towards self-guarding their national interest through a
possible mean of bilateralism. When it came to addressing
differences with and of each other, Mao expressed that both
of them need not “quarrel”, with Nehru agreeing to
acknowledge their differences but there was indeed no point
of quarrelling. It was ironic enough that the meeting between
Nehru and Mao vowing not to rage war ended up with war
in 1962 with each other. Although the war was beyond the
general commonalities and not on their differences, these
two leaders of the past had paved the way for the current
leaderships of India and China to follow on ensuring a future
of mutual possibilities. Besides sharing a very highly disputed
border, the vision that Nehru and Mao had is not the same in
the hands of Narendra Modi and Xi Jinping. This existing
bilateral partnership comes into question. Now, the war
between them is with a common enemy, COVID-19. What
will transpire between them post pandemic?

The Dragon-Elephant Ballet

Before deriving to an answer, it is best to lay an
understanding of their relationship. Both these countries have
a long-standing common enemy, not COVID-19, but the
border. The territorial disputes have been a long unresolved
matter. The border stretches across five Indian states of a
distance of about 4000km. It includes the western Line of
Actual Control (LAC), a small undisputed section in the middle,
India and China: Do they Need Each other, or Can they Live... 23

and the eastern McMahon Line. The dispute originated in the

1950s when an access road that China was building to connect
between Xinjiang and Tibet, crossed the Johnson Line through
Aksai Chin. 70 years on, and the border is still experiencing
constant friction. Despite the border issues, India and China
have been in trade over the same course of time. A Bloomberg
report reported that for the fiscal year of 2019-2020, China
accounted 5% for India’s total exports, and 14% of imports,
making the huge trade deficit a constant contest on India’s
side of the court.
The deficit comes in the form of capital goods that China
exports, suggesting that the secondary sector of India’s
economy is somewhat inefficient and therefore inadequate to
produce for the country’s infrastructure development. Poor
fundamentals of infrastructure development, poor economic
stimulation. China’s investments into India, just for the year
2019, rose about 7% from 2018 totalling to $4 billion was for
the metallurgical industries, renewable energy, and chemicals.
The clouds of the pandemic have seen China starting to buy
up shares in India’s pharmaceuticals. The Reserve Bank of
India reported that in 2019, India’s investment into China
was a mere $1 billion. With GDP exceeding the trillion mark,
India and China are only exercising foreign direct investments
where benefit them the most. Of late in April, India has placed
a motion to tighten its policy on FDIs to receive government’s
approval first.
Such a restriction is not new as it sanctioned Bangladesh
and Pakistan in the past, but it came as a surprise to China.
Indian Ministry of Commerce commented that the reason for
stringent requirements is to avoid opportunistic takeovers of
Indian companies as more and more were being financed by
China. 18 Indian “unicorn” companies are experiencing some
form of Chinese control. China had protested citing violation
of WTO’s free trade rules as it had purchased a 1% stake of
India’s largest nonbanking mortgage provider, HDFC,
24 An Integrated Effect and Impact of COVID-19

through the People’s Bank of China. China has roughly about

75 manufacturing facilities in India of smartphones, consumer
appliances, and construction equipment, and such ruling could
impact trade relations. The most recent border dispute of the
LAC had seen India banning China mobile applications,
distorting consumer purchases of China products, and raging
revenge of the lives lost at the border.
Chinese brands have been dominating India’s market for
the last decade, and with the imposed restrictions, trade
tensions are inevitably rising. India was a main protagonist of
China’s Belt and Road Initiatives. In May of 2013, China and
India proposed the Bangladesh-China-India-Myanmar
Economic Corridor (BCIMEC) with the objective of enhancing
regional connectivity to tap into the huge domestic markets
of China and India. But with the current convolution, and
especially after the “hostile takeover” of Sri Lanka’s
Hambantota Port, India glued its vision to China’s Indian
Ocean agenda, and has mentioned to use the 1997 formed
alliances of The Bay of Bengal Initiative for Multi Sectoral
Technical and Economic Cooperation (BIMSTEC) to talk its
neighbours out of the Belt and Road Initiatives. Ironically, on
a positive note to all these skirmishes, tourism between India
and China has been booming, at least before the pre COVID-
19 lockdowns.
China is the eighth largest market for India. In 2019, India
hosted 350,000 of Chinese travellers contributing to the $98
billion of India’s tourism GDP. These two may seem to not
like each other, but historical breakdown says otherwise. In
the past, things between India and China were not all bad.
Recalling historical events that took place between these two
nations at the global front, it is clear to witness that deep
down beyond the blemishes of geographic and economic
skirmishes, they are indeed good friends. Beginning in the
1950s, Nehru met Mao to establish ties. In 1955, Nehru met
Zhou Enlai and signed a joint statement of the five principles
India and China: Do they Need Each other, or Can they Live... 25

of peaceful coexistence. Post border clashes, India and China’s

ties took a setback but in 1976 they restored ambassadorial
relations. In 1988, Rajiv Gandhi met Deng Xiaoping to
normalize ties to take the relationship forward beyond the
boundary issue. In 1991 and 1992, R. Venkataraman met with
Li Peng to restore trade suspensions. 1993, Narasimha Rao
met with Jiang Zemin to agree on maintaining peace at the
LAC and he met Deve Gowda in 1996 to build a constructive
partnership of cooperation.
In the year 2000, K.R. Narayanan celebrated the 50th
anniversary of India-China with Jiang Zemin. Zhu Rongji met
with Vajpayee to sign an agreement to enrich joint
understanding, appreciation, and trust and to foster relations
and cooperation in various economic spheres (Reddy, 2016).
In 2003, Vajpayee met with Hu Jintao on establishing a
mechanism for boundary matters. In 2005 and 2006
respectively, Hu Jintao and Wen Jiabao met with Abdul Kalam
and Manmohan Singh to discuss on a strategic peace
cooperation on matters regarding the border. In 2008,
Manmohan Singh signed a foresight document of shared vision
for the 21st century with Hu Jintao. In 2010, President Patil
and Premier Wen Jiabao celebrated the 60th anniversary and
issued a joint statement. 2011 and 2012 was the China-India
Exchange Year and the China-India Friendship and
Cooperation Year, respectively. 2013, Xi and Manmohan Singh
spoke on economic development cooperation at the 5th BRICS
Summit. 2014 was again the China-India Exchange Year and
Xi met Modi in Gujarat for the Joint Statement on Building a
Closer Developmental Partnership.
They met again in 2014 at the 6th BRICS Summit detailing
out trade agreements. In 2015, Modi met Xi in Xian and at the
7th BRICS Summit on matters pertaining to East Asia
cooperation. That same year was historical too as China opens
up Nathu La to Indian pilgrims. 2015 was also India’s tourism
year in China. In 2016, Xi met Modi and also Mukherjee. This
26 An Integrated Effect and Impact of COVID-19

time round, China celebrated its tourism year in India. 2017,

Xi met again with Modi in Astana at the SCO Summit
discussing on economic and political cooperation matters. In
2018, Xi met Modi in Wuhan and attained comprehensive
accord on the overarching, long-term, and strategic issues of
global and bilateral importance, and of their respective visions
for national development and as well as domestic and foreign
policies. In 2019, Xi met Modi again but this time it was in
Chennai on the same matter of national development. In 2020,
as part of the 70 th anniversary of India and China’s
relationship, they both met again to discuss matters pertaining
to people-to-people relations between the two countries at all
levels, not limiting to their respective policies and legislatures,
businesses, academics, cultural, youth organizations, and as
well as the defence forces.
Throughout the course of all the meetings, in parallel and
in tandem with all disputes that took place between India and
China, consensus has always been reached and achieved. They
are the only two economic powers with over a billion in
population that have played a key role in the process of
collective rise in developing countries. Together, they are yet
to inject a profound change in the world. Celebrating 70 years
of friendship in 2020, war could have broken up in these two
countries many times over, but it did not. The India-China
bilateralism goes beyond politics and economics. They stand
true to the 1955 Bandung Conference of the Five Principle of
Peaceful Coexistence. No doubt that quarrels had ensued, but
they both stand firm with regards to sovereignty respect and
territorial integrity, joint non-aggression and non-interference
in each other’s internal affairs, equality and reciprocity
benefits, and peaceful diplomatic coexistence.”Hindi Chini
Bhai Bhai” (Indians and Chinese, like brothers) is the call
known between them to solve many disputes over the years.
Modi and Xi was the ones who initiated the hometown
diplomacy engaging in strategic exchange and consultation
India and China: Do they Need Each other, or Can they Live... 27

on long-term global and regional issues and importance and

have agreed to strengthen the partnership through
development of both the two countries. Narendra Modi said
in recent times that the whole world is but a family, and this
is in harmony with the China’s constitutional philosophy of
universal peace and love. The wisdoms of both of these ancient
empires still stand true and full of vitality in today’s context.
China and India have sufficient foresight and ability to bend
energies to realize the ballet performance that they are in.
Despite all the odds, they will create a brilliant future together
for the next 70 years.

COVID-19 and the Changing Bilateralism

At the turn of the millennium, the high growth that India
and China had experienced has stimulated a lively debate
about economic performance and long-term development
within the two Asian giants. In that same period, there have
been scepticisms about potential competition and plausible
confrontation between the two (Siddiqui, 2019). At the corner
of competition, there have been numerous accounts, but
cooperation has always prevailed. On the other corner of the
economic ring, confrontation has been a likelihood pertaining
border matters, and not on the economic front. It is
unfathomable for an India-China trade war. Economic data
and reports from the world’s institutions clearly depicts that
these two giants are trading below its economic capacities.
The trade deficit for the financial year of 2020, stood at $48
billion, and the overall FDIs are not worth mentioning. India
and China are self-contained economies.
They are large enough to possess the economic means to
sustain and provide for its economic wellbeing. Standard
Chartered London had forecasted that by 2030, India will be
the second largest economy of the world, behind China, with
a GDP PPP to scale in the high trillions. Unlike the China-US
trade war that is consistently flexing sanctions on each other,
28 An Integrated Effect and Impact of COVID-19

the India-China trade tensions will not exist. During the eras
of the Maharajas and the Dynasties, they were already the
largest economies of the world. History has been repeating
itself many times in many ways that the only pressing matter
between India and China is of the border. When this comes to
a full resolution, the economic progress and development
that will take place in India and China will be unprecedented,
something the world is yet to witness. As Gabriel Manigault
said, “the enemy of my enemy is my friend”, and the current
enemy is the pandemic outbreak.
The pandemic has caused severe damages to India, China,
and to their relationship. The sufferings brought on by COVID-
19 was an excuse to reignite old flames of revenge and to rage
confrontations with China. The media does a phenomenal job
in instigating the peoples demands for a clash. With time not
being impeccable, it was further flamed by the unfortunate
deaths of the Indian soldiers who died at the LAC breakout.
The entire predicament gives India two enemies, China, and
the pandemic. For China, it is fighting two nemesis too,
COVID-19, and the US. Post pandemic poses a threat. If the
Asian giants do not resolve matters amicably or even set
aside their differences to combat against the virus, the
ramifications will be at the extend of Asia. The border squabbles
are not imperative to the pressing matter at hand. Millions
had died from this deadly virus the world over, and millions
are to die if it is not handled (delicately) diplomatically.
Asia’s supply and value chains stems from India and China,
the resiliencies of a rich and dynamic economic continuum are
in the hands of battling the pandemic through a peace accord.
The key area of solution is in the pharmaceutical sector. Not
only China, but Singapore and other Asian countries have
investment tie ups in the sector. This shows the crucial role
and leadership that India (must) play in the fighting of COVID-
19. For India to outshine in a post pandemic world, the new
normal in geopolitics and geo-economics is for India to unlearn
India and China: Do they Need Each other, or Can they Live... 29

its cultural nationalism and adopt China’s approach of

productive nationalism. The Indian labour force must be as
equipped of China’s for it to pose an economic dominance in
Asia. But judging from their long-standing relationship, it
would come as no surprise should China transfer its
technological know-hows to elevate Indian’s production
outputs.
If Modi aspires to take India’s brand globally and making
India the world’s factory, then the pandemic serves as a reset
button. For the next 10 years to come, changing bilateral
trades are to be seen. India must realize quickly that a
“Namaste Trump” will only set India back decades. China’s
global relations are strained. Albeit the Belt and Road
movements has been garnering economic support, but it is
very difficult to remove global economic perceptions that
China is the virus originator. For the moment, China has the
upper advantage for a post COVID-19 world. With China
advancing out of the low technology manufacturing, India
can pickup that role. It will provide employment for the
millions that will be left stranded post the pandemic. Many
Indian companies will be facing severe cash and capital
constraints because of the pandemic and will therefore be
very cautious before making any business moves.
China is ever ready to reach out its hands of assistances
but with Modi’s stringent policy on direct investments, many
of these Indian companies may file Chapter 11. As COVID-19
accelerates, it is slowly eroding the authorities of the larger
economies. The US is in no position to think about its economy
while undergoing instable political leadership and election
interferences, and China is heavily disputing all of its border
disputes, land and maritime. Therefore, this permits India
(and the rest of the middle powers) to strategize to enjoy
larger bargaining capabilities with China and the US. India’s
geopolitics depends on its key domestic structural changes.
India is the political deciding factor for both the US and
30 An Integrated Effect and Impact of COVID-19

China. China and US would want India to join their bloc but
playing off China and the US would give India an advantage
to depict economic collaboration under its terms. The Indian
growth story will continue to require free flows of capital,
labour, goods, and services.
With the world having larger and increasing distrust over
China, India can gain by being part of multiple economic
webs. A common feature between India and China when it
comes to economic growth patterns is the adoption of pro
trade policies by both countries (Jens Hölscher, 2010), and
this has led to impressive growth in international trade. India
has shown rapid catch up with China over the years. India
saw a huge and growing commercial opportunities in China,
and China saw a lower labour cost and a well-developed
information technology sector in India, and as a result to this,
trade bilateral improved and increased over the past decade.
Future trade and bilateral cooperation between India and
China will depend on its trade intensity. For the moment,
economic data are showing that these two are not trading at a
level as high as it should be, making this an opportunity.
From independence and liberation, both have been working
closely on trade cooperation. Diplomatic relations are strong
but somewhat sensitive. This trade relationship will also matter
with exploiting each’s comparative advantage (Surie, 2019).
There are overlaps in commodities between India and China,
and they should expand where there are no overlaps. India
has a stronger service sector as compared to China, but a
weaker industrial sector, and this is where in a post COVID-
19 world, both the giants can complement each other and not
compete in the same economic area.

Can India and China Live Apart?

Unlikely, It may seem as though, but they will not. India
has two roles to play for the world, and China to benefit
from. One, as the next world’s manufacturer, and two, India
India and China: Do they Need Each other, or Can they Live... 31

is the pharma-of-the-world. India is a frustrated country

representative at the United Nations. India is also the non-
permanent member of the United Nation Security Council.
China is a permanent member. China is fully aware of India’s
position and its importance to the world, and China has
supported India to become a permanent seat member of the
Security Council. But India in the present time of the global
front is behaving irrational. It is demanding the respect it so
needs and it is demanding it instantaneously. It is demanding
solely based on its economic dynamism. Yes, it is a trillion-
dollar economy simply because of its sheer size and the
resources it has for the world’s consumptions and demands.
But India does not have a robust economic structure.
The roots of its economic fundamentals are still weak. It
is weak because infrastructure development is critical for
improving India’s manufacturing comparativeness and
competitiveness. The execution of economic orientated projects
needs to be timely to the budgeted cost. There are still huge
gaps in the transportation infrastructure capacity as this could
and would limit the performance of its economic corporations
(Adhikari, 2019). India’s steel, cement, and real estate sectors
are pertinent to its GDP, but with proper implementation of
infrastructure development. Despite the expenditure that the
Indian government is shouldering, it assumes that it needs
about $1.5 trillion in infrastructure investments for the coming
decade. Shockingly, even with the amount it needs, the results
would only bridge the infrastructure deficit rather than
generate future growth. On its own, India does not have the
financial capacity it needs for this.
India alone would require its own version of the belt and
road initiatives. In 2021, India would play a bigger role in the
security council. As a non-permanent, it wants to ensure that
transformation and transparencies are seen within the United
Nations. It has taken a firmer stand towards climate change,
and India has acknowledged that it has contributed
32 An Integrated Effect and Impact of COVID-19

significantly towards impacting the climate. India has time

and time again said that its internal affairs are for its own
perusal. No outside interferences are needed. The matter of
Kashmir is a national tussle. It has said in multiple occasions
that it is capable enough to resolve its problems given the
time to do so. India must quickly realize that the dynamism
and the interplay of its demographics, geography, social
awakening, economy structure, and its aspiration towards
growth and prosperity, with its billion over population, it is a
mirror image none other than China.
China is the only country in the world that understands
the struggles that India is facing. No other country in the
world would be able to comprehend what India and China
are like. No country will ever manage a billion people. China
has the deepest respect for India, and it is giving it to India.
Only China sees and knows what India is experiencing. The
India-China relationship is by far the most significant one
that the world will ever witness. For many corporations,
India and China are non-identical twins. Both of them face
similar macroeconomic challenges but their ways of
responding to it are very different. This relationship becomes
complicated with the involvement of foreign interferences.
To answer what will transpire between India and China post
pandemic, it would be in the relevance of the character of
their institutional relationship forged in the 1950 to be
prevailing in today’s circumstances.
As individuals, they have marvelled the world with their
achievements, but the world is yet to see the force they will
bring when united. The world has been fighting COVID-19,
where is India and China in this joint fight against the
pandemic? India and China’s relationship needs a new unified
emphasis in thoughts, in action, and in reform, one that befits
modern day challenges. Reforms in the relationship’s
responses, in the relationship’s processes, and in the
relationship’s character are needed for the decades to come
 India and China: Do they Need Each other, or Can they Live... 33

(Jash, 2020). Global decision-making structures are found in

this reawakened relationship. But Modi’s propagation of a
“Self-reliant India” may take nationalism to an unintended
level counter to propagating shared prosperity, a manifestation
that India should materialize on. The adverse impact would
equal to a democratic China. As the world enters into the
recovery and vaccination phase of the pandemic, it will unfurl,
depict, and answer the stance of the exigencies of Hindi Chini
Bhai – Bhai (Indians and Chinese, like brothers).

References
Adhikari, S. (2019). Structural Transformation of India: A
Quantitative Analysis. The Indian Economic Journal, 1-22.
Jash, A. (2020, May 13). India-China relations: Compromises and conflicts
amid Covid-19. Retrieved from Think China: https://www.
thinkchina.sg/india-china-relations-compromises-and-
conflicts-amid-covid-19
Jens Hölscher, E.M. (2010). China and India in the Global Economy.
Economic Systems, 212-217.
Mukherjee, D.M. (2010). India and China: Confilict and Cooperation.
Survivor, 137-158.
Reddy, G.J. (2016). India and China Relations: Historical, Cultural and
Security Issues. Andhra Pradesh: UGC Centre for Southeast Asian
and Pacific Studies.
Siddiqui, K. (2019). Economic Transformation of China and India: A
Comparative Political Economy Perspective. Asian Profile, 43-
59.
Surie, N. (2019). China’s India Policy: The Importance of Bilateralism
— An Appraisal. India Quaterly: A Journal of International Affairs,
125-136.

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