According to Mahindra Group Chairman Anand Mahindra, India is now remarkably close to surpassing China as the world’s leading manufacturing hub. Factors such as the neighbor’s ambitions and the disruptions in the global supply chain caused by the Covid pandemic have played a significant role in favor of India’s growing position as a global factory, he said on Friday.
He also highlighted the nations increasing potential to become a major player in the manufacturing sector, and said India is ready to take on China’s role as the factory to the world.
“We are well into the run-up. The Indian economy is growing at 7 per cent when many countries are heading for recession. Geopolitical tensions with China are pushing many manufacturers in India’s direction. But that is not the only reason. Economics also enters into it. India actually has the cheapest manufacturing costs in the world. It is not surprising that, of late, companies of the stature of Apple, Samsung, Boeing, and Toshiba have shifted a significant amount of their manufacturing activity to India,” Mahindra said.
Highlighting that it’s not only the Western nations, Mahindra asked, “Would it surprise you to know that the second largest investor in India is Singapore? We are within pole-vaulting distance of being able to replace China as the factory to the world.”
He further said, “Suspicions of China’s ambitions and post-Covid supply chain disruptions have also worked in India’s favour. And we are well placed to take advantage of this. We have massively improved our performance on the World Bank’s Logistic Performance Index. Our thrust on infrastructure is paying off.”
As the world functions digitally today, Mahindra said India is in an enviable position on digital infrastructure.
“The cost of 1 GB of mobile data in India is the cheapest among major economies, and how. So is the cost of mobile internet. We are 73 times cheaper than South Korea, which has the highest cost of mobile data among major economies. I believe India is generating enough kinetic energy for a spectacular pole vault takeoff,” he asserted.
He stressed on taking the fullest advantage of India’s increasing stature on the world stage.
“The world is at a stage where China’s political ambitions are being viewed with alarm, and India is seen as an obvious buffer and counterbalance to China. There are many countries wooing us today,” Mahindra said, adding that India’s foreign policy has been outstanding and the country handled the Ukraine crisis well.
According to Anand Mahindra, India stands out as one of the few nations whose economy and oil supplies remain unaffected by global fluctuations. Moreover, India has successfully positioned itself as a helpful and neutral party on the international stage.
He went on to emphasize that India is actively competing for political leadership in South Asia, and its role as a member of the G20 has amplified its voice in addressing critical issues like climate change and the environment. As a result, India is enjoying an unprecedented level of respect and recognition on the global stage.
He described India’s unique democratic landscape, as “raucous, chaotic, and vibrant.” He shared his belief in the dynamic democracy of India and said that the nation will harness immense potential of its 1.3 billion people, converting their kinetic energy into the gravitational energy necessary to soar higher, faster, and stronger as a nation.
