In recent years, global companies have been diversifying their manufacturing operations beyond China to mitigate risks associated with the country’s geopolitical tensions, supply chain disruptions, and increasing labor costs. This strategy, known as “China Plus One,”has resulted in a significant shift in global supply chains, and India is emerging as a key beneficiary.
Several multinational corporations, including Apple, Motorola, and Lenovo, have ramped up their production operations in India. Apple, for instance, now manufactures around 7% of its iPhones in India, a figure that is projected to rise to 25% in the coming years. India’s manufacturing ecosystem offers several advantages, including a large skilled workforce, competitive labor costs, and a robust domestic market for consumer products.
The Indian government has also played a vital role in attracting global companies by introducing incentives such as the PLI scheme, which offers financial support to manufacturers in high-tech sectors like electronics, mobile phones, and components. India’s growing reputation as a manufacturing hub is further bolstered by its well-developed infrastructure, access to a large consumer base, and favorable government policies aimed at easing business operations.
As more companies adopt the China Plus One strategy, India’s position as an alternative manufacturing destination will continue to strengthen. The country’s role in global supply chains is expected to grow, especially as companies look to diversify production bases and reduce dependency on a single country for manufacturing.