Supply Chains, The Rise of India as a Manufacturig Hub
By: Suryaprabha Sadasivan
Over recent years, global manufacturing has been undergoing significant changes due to evolving geopolitics and externalities. For nearly four decades, China, termed as the “world’s factory”, has been a leading manufacturing base due to its strong business ecosystem with a widespread domestic value chain that supports large-scale, cost-effective production, low taxes, and favourable currency practices. However, before the US-China trade war and the COVID-19 pandemic, rising wages and taxes led to the increased cost of doing business in China, which weighed heavily on companies, causing them to look at alternative options in the region, such as Thailand, Malaysia, and Vietnam. The Russia-Ukraine conflict, Taiwan sovereignty issues, and the vulnerability from the fallout of the pandemic further heightened the need for diversification, prompting many companies to adopt “China +1” strategies, aiming to reduce dependence on a single country.
