Make in India and PLI Schemes
China Plus One and Global Supply Chains
Companies seeking to reduce dependence on China look at India, Vietnam and others, giving India a chance to attract factories.
Global firms want a second base beyond China.
The idea
After trade tensions and the pandemic, firms started spreading production across more countries.
India’s pitch
A large market, cheaper labour than China, and government incentives.
Competitors
Vietnam, Thailand, Mexico and Indonesia also compete for the same investment.
What India needs
Reliable power, logistics, skilled workers, flexible labour rules and stable tax and trade policies.
A factory decision
A global company picks between India and Vietnam based on costs, market access and rules.
Assuming firms will automatically pick India
It must compete on several fronts.
Key takeaways
- China Plus One diversifies supply chains.
- India offers market and incentives.
- Others compete.
- Infrastructure and rules decide.
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