India is emerging as a major force in the manufacturing industry.
India not only has a large labor population but also a huge market, which is second only to China globally.
China, once the hub of international multinationals, is being driven out of business investment. International businesses no longer see a bright future in China as a result of the country’s disputes with Taiwan and the US, labor shortages and government pressure to transfer technology to Chinese firms. In terms of trade and manufacturing, these corporations now see India as a viable alternative to China. From Apple to Foxconn, every international corporation sees India as a paradise. China still leads the world in manufacturing, but India is now posing a serious threat to China’s empire.
According to an article in the Wall Street Journal, India not only has a large labor population, but its domestic market is second only to China globally. The democratic system in India is also tempting the western governments. The Government of India is making every effort to turn the country into a manufacturing hub. India is emerging as a major force in the manufacturing industry.
India is overtaking other emerging countries like Mexico and Vietnam in terms of rapidly expanding industrial exports. Compared to 2018, India’s electronics exports have now tripled to $23 billion. According to a survey by Counterpoint Technology Market Research, only 9% of the total smartphones produced worldwide were made in India in 2016. India’s share this year will be 19%. The Central Bank of India reported that from 2020 to 2022, foreign direct investment in India averaged $42 billion annually. It will double in less than ten years.
Danish business Vestas to have two factories in Sriperumbudur, Tamil Nadu by the year 2021. The company, which is the largest producer of wind turbines in the world. Currently operates six production lines in India and exports its goods all over the world. According to Charles McCall, Senior Director, Vestas Assembly India, the corporation is setting up its manufacturing facilities in countries other than China.
iPhone maker Apple is slowly moving its operations from China to India. Apple had developed its state-of-the-art supply chain in China over the past fifteen years. Apple’s presence in China has greatly boosted the country’s manufacturing industry. However, Apple is reportedly moving out of China. Apple only assembled cheap components in India until 2017. However, soon after its release, Apple started production of the flagship iPhone 14 in India.
According to JP Morgan, India will produce a quarter of all iPhones by 2025. Apple’s primary supplier Foxconn also operates a facility in Chennai.