Over the last five years, a significant transformation has occurred in global manufacturing as major multinational companies, including Apple Inc., seek to reduce their dependence on China, historically known as the ‘world’s factory’, according to the 2024 Economic Survey report.
India’s large domestic consumer market makes it an appealing destination for these companies, particularly in the electronics sector, where smartphone manufacturing and assembly are thriving, according to the report released on Monday.
This shift is driven by disruptions from Covid-19, escalating US-China tensions, and increasing business costs in China, the report stated.
To mitigate these risks, many companies have adopted a ‘China plus one strategy’, diversifying their supply chains to reduce their reliance on China for high-tech electronic products and components.