Following the geopolitical turmoil, companies into manufacturing space, are diversifying their operations across regions to reduce risk. India has a huge market opportunity with dynamic workforce, political stability, steady growth in income levels, and so the country is eyed as one of the best places to set up manufacturing bases.
India continues to remain the fastest-growing major economy and is expected to sustain its growth trajectory going ahead. India’s economy grew 8.2 per cent in 2023-24, 7.2 per cent in 2022-23, and 8.7 per cent in 2021-22, respectively.
Amit Goel, Co-Founder and Chief Global Strategist, Pace 360, an asset management company, said, “India has been well-positioned to benefit from the recent shifts in global supply chains. The pandemic exposed vulnerabilities in over-reliance on certain regions for production, and many companies are looking to diversify. India boasts a massive and growing domestic market, making it attractive for companies to set up production facilities and cater to local demand.”
Companies like Foxconn and Apple, besides many electronics, aerospace, and medical device companies are scaling up Indian operations, attributing to the government’s incentives and latest policy on electronics manufacturing. Ashish Saraf, Country Director, Thales India, a defence and aerospace equipment manufacturing company, said in 2023, it sourced over Rs 2,000 crore worth equipment and technology services from India to serve their global businesses. India’s emerging strength in the global logistics supply chain, particularly in the mobile, semiconductor manufacturing, aerospace, and defence sectors, is a testament to its resilience and determination.
