Global Manufacturers Shift Focus from China to India

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Global manufacturers have initiated talks with Indian firms to explore the possibility of shifting a part of their supply chains from China as they seek to diversify their operations following the covid-19 outbreak. Most of these multinationals have suffered widespread disruptions to their businesses as authorities enforced strict lockdown measures to contain the pandemic, which originated in Wuhan city in China’s Hubei province. First of the lot are companies interested in sourcing automobile components and electronic products from India, according to industry executives.
Part of the demand is also coming from Indian companies who were heavily reliant on China for sourcing components, but suffered because of the novel coronavirus-induced disruption in China, which, over the years, has emerged as a manufacturing powerhouse.


In March, India’s cabinet announced a production-linked incentive (PLI) scheme for the electronics sector with an outlay of over ₹40,000 crore. “There is a clear negative sentiment against China. We have received requests for supply from India,” said Amrit Manwani, president of Electronic Industries Association of India. “If we play our cards right, we could double our exports (of electronic products) in three years’ time.”


At home, most local firms are actively looking for alternative sources to China and are bound to reduce imports from there though the process is expected to be gradual

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