Overview
Rising labor costs in China, geopolitical tensions, and “China+1” strategies have made India a top candidate for global manufacturing. But can it deliver?
Strengths
- Competitive wages, especially in electronics and textiles
- Expanding infrastructure (e.g., freight corridors, ports)
- Major policy pushes: PLI scheme, “Make in India”, semiconductor incentives
Challenges
- Bureaucracy and labor law complexity
- Uneven regional development
- Skill gaps in advanced manufacturing
Example
Foxconn and Tata are jointly building India’s first chip assembly plant; Apple now assembles ~7% of iPhones in India.
Takeaway
India is no longer just a back office—it’s aiming to become a global industrial powerhouse.