India can up its game by turning into a manufacturing powerhouse
According to news reports, iPhone maker Apple and a supplier to many other tech giants Foxconn's co-chairman has said that China's time as a factory to the world is over due to the US-China trade war. Foxconn based in Taiwan is world’s largest contract electronics manufacturer. The company recorded a net profit of $778.54 million for the second quarter ended June.
Furthermore, as per Reuters, Foxconn is planning to invest around $1 billion to expand a factory in southern India where the Taiwanese contract manufacturer assembles Apple iPhones. This is a significant move hinting at a gradual shift from China by Apple. The coronavirus disruption amplified by the US-CHINA tensions offers India a good platform to capitalise on this opportunity.
Moreover, Indian government is pushing initiatives like ‘vocal for local’ and ‘self-reliant’ nation, which is going to boost domestic manufacturing. The set of incentives offered by the government of India to attract global brands moving away from China seem to be working, with companies from Samsung to Apple assembly partners intending to shift base in South Asian countries.
India expects to produce $153 billion worth of manufactured goods as well as generate around one million jobs directly and indirectly in a span of five years, according to reports.
China’s loss is going to be India’s gain and help the nation recover from the economic slowdown and turn into a 3 trillion economy by 2025.