Why global manufacturing won’t desert China for India. Automation, near-shoring are the priority.

Battery module and pack production line at Tesla's Giga factory in Shanghai, China; image credit: Tesla

Synopsis
Prime Minister Narendra Modi feels India can emerge as an alternative investment destination to China, and the US, too, believes it’s a possibility. But even a China in retreat may not shift global supply chains to India. Cheap labour won’t be a game changer for India in an era of automation, and at a time when near-shoring will become more relevant.

The emerging order post Covid-19 is an opportunity for India to emerge as an alternative investment destination to China, believes Prime Minister Narendra Modi. Wake up “the sleeping giant”, Modi urged a gaggle of chief ministers recently. The US, locked in a fierce trade war with China, certainly believes it’s a possibility. “India can quickly become a favourable jurisdiction for more of the industrial activities that are happening currently in