Amid geopolitical tensions and the effects of the COVID-19 pandemic, India is positioning itself as a strong competitor in its bid to overtake China.
For the past four decades, China has dominated supply chains, despite efforts by the United States to counter its influence. However, China’s stance of not tolerating COVID-19 cases has raised concerns about the risks of relying exclusively on China. However, the question arises as to whether India will be able to seize this historic opportunity and whether it has the resources to become the world’s new factory.
The importance of an alternative market: India
International companies see India as an alternative market to relocate their supply chains. For some time now, there has been talk of the need to diversify supply chains away from China to mitigate geopolitical tensions and avoid problems arising from the trade war with the United States. However, the COVID-19 pandemic and China’s total case ban policy have highlighted the risks of relying on a single country for supply chains. This has raised awareness of the importance of diversifying and reducing dependence on China in this crucial area.
Companies such as Apple have experienced hurdles in the production of iPhones due to limited access to certain parts of the supply chain in China. As a result, they have sought alternatives, and India has stood out as a favorable destination due to its large labor force, manufacturing history, and government support to boost industry and exports. Supply chain risk management experts recognize India as a favorable choice for international companies.
Can India become the world’s next factory?
India faces several challenges on its way to becoming the world’s new factory. Its democratic system hinders rapid decision-making and entails a significant bureaucratic burden. In addition, the country will have to address challenges related to managing its large youth population and stimulating industrial development. Despite these obstacles, experts recognize India’s potential to become a major manufacturer and offer a real alternative to China.
India is in a crucial position. The country is determined to challenge Chinese dominance and become the next global manufacturing hub, which seems more feasible given the current circumstances marked by the pandemic and geopolitical tensions. However, India will need to overcome bureaucratic challenges and adapt its business environment to meet the requirements of international companies seeking to diversify their supply chains and ensure resilience in the event of similar future events. The economic world is watching India, anxious to witness its struggle to overtake China and become the world’s new factory, as this presents great opportunities for both the business environment and industry professionals.
Continue your professional training
In today’s ever-changing business landscape, it is important to have the right knowledge and skills to excel in this field. Thus, the Universidad Internacional Iberoamericana (International Iberoamerican University, UNIB) offers the Master in Strategic Management with a Specialty in Management.
Embark on this academic journey to enhance your skills and be part of the select group of individuals who will shape the future of global business. Let our institution provide you with the knowledge, skills, and resources you need to thrive in uncertain times. Join UNIB to embrace the opportunity to break barriers and make your mark on the world stage.
