Entering the growing Indian market (and de-risk Chinese operations)

I believe that there has been a lot of bluster and that the US and China trade war will be settled soon.  However, US and European companies are “realising the need to de-risk their supply chain as well as their manufacturing operations. Most of the large US companies are looking at not only India but Vietnam, Cambodia and other South-east Asian countries to set up world-class manufacturing units and reduce their dependence on China.”.

The advantage India has is its large domestic market and skilled engineers in addition to being a good base for  manufacturing.  Government programs like M-SIPs help “The scheme provides a capital subsidy of up to 25% for units engaged in electronic manufacturing and reimburses countervailing duties/excise duty to attract investments.”

Mobile phone manufacturing in India is starting “Interestingly, there are currently 240 companies in India which are making electronics products and about half of them (127 companies) are manufacturing mobile phones with Noida and Greater Noida in northern India emerging as a mobile phone manufacturing hub, having 57 factories alone” 

According to a recent UN Conference on Trade and Development (UNCTAD) report, India will emerge as one of the largest beneficiaries of the trade war between the US and China, with a potential increase in exports up to $10 billion or 3.5% of its exports

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