Indian President Narendra Modi’s administration announces a mega investment and technology project seeking to attract international firms to India to set up their factories and operations centers. 

The chips are being stacked in the new post-pandemic international context. The Chinese regime is suffering a major economic crisis and is at the center of criticism for its outrages and dictatorial policies. Meanwhile, India intends to make a qualitative leap in its commercial role and is striving to replace the Asian giant as the “factory of the world.”

With a $1.2 billion (100 billion rupee) mega-project, the Indian government intends to develop a technology platform that includes the participation of its 16 ministries. 

The portal will offer investors and companies a one-stop solution for project design, hassle-free approvals, and more straightforward cost estimation.

In this way, the government aims to eliminate the bureaucratic hurdles that today may be delaying the entry of foreign capital into the country. 

“The mission is to implement projects without time overrun and cost overrun,” Amrit Lal Meena, special secretary for logistics in the Ministry of Commerce and Industry, said in an interview in New Delhi. “Global companies choosing India as their manufacturing centre is the objective.”

In addition to suffering a deep economic crisis linked to financial speculation in the real estate market, the Chinese regime is now suffering the economic consequences of the Orwellian measures imposed by it to deal with the pandemic.

In this situation, many companies opt to migrate to other countries, diversify their production, and stop concentrating all their effort in China. 

In this context, India has seen a great opportunity that, according to its leaders, it is not willing to miss.

India is the third largest economy in Asia, after China and Japan, and has a sufficiently qualified, capable, and cheap labor force, especially in information technology. 

Another point in its favor is that most of its population is fluent in English, which makes communication with the rest of the world much more straightforward and reduces the cultural barriers that are often a significant obstacle to doing business.

India’s weakest point, compared to China, is undoubtedly its obsolete infrastructure and lack of technological development. Still, according to its declared objectives, it seems to concentrate its efforts on resolving these aspects.

India has been planning its infrastructure development for some time now. However, many of its projects have been stalled or delayed by bureaucratic hurdles that could easily be removed by applying new technologies. 

India hopes that this new platform, which includes all its ministries, will allow for more holistic and integrated project planning. 

The Modi government seems to be well aware that quality infrastructure is the key to kick-starting the development of economic activity and creating large-scale employment. But conversely, without modern infrastructure, comprehensive development that would enable it to compete with China is not possible.

Major new deals bode well for India’s promising future

Apple plans to start manufacturing the iPhone 14 in India and has also asked its suppliers to start making some of its AirPods and Beats headphones in the country starting next year.

The move marks the company’s latest attempt to reduce the risk of supply chain disruptions in China. The communist regime’s policies to deal with the pandemic added to rising trade tensions with the United States. 

Apple still relies heavily on China for most iPhone production, but this move could be marking the beginning of a serious and irreversible breakdown in its relations with the regime.

According to reports, Foxconn, one of Apple’s manufacturing partners, will manufacture Beats headphones in India and pledged to produce AirPods in the future. In addition, Luxshare Precision Industry, which manufactures Apple’s AirPods in Vietnam and China, has also reportedly announced its commitment to start production in India.

Originally Apple’s idea of introducing a foot in India had to do with gaining more direct access to the Indian market—the world’s second-largest consumer of cell phones. But the recently announced strategies have to do with the strategic idea of mass producing in India to export to the European market.

Gautam Adani, the world’s third richest person, on India’s new role

While the Chinese regime, seeking to strengthen itself, implements measures that distance it from the West, other countries in the region are moving to take their place in the world market.

During a conference, India’s Gautam Adani, the wealthiest person in Asia and one of the most influential in the continent, predicted a dark future for China. 

During his speech, he said that the international context and the measures adopted by the communist regime could go so far as to isolate the Asian giant.

In comments during a CEO symposium in Singapore organized by Forbes magazine, Adani said that China was considered the “main winner of globalization.” But instead, the failure of the “Belt and Road” initiative and its economic and social policies drove the country into isolation.

The new post-pandemic reality opens the game for the emergence and development of new powers. In this regard, Adani pointed out that India, his home country, can play more than a leading role in the global economy.

Much of the funds flowing out of China are pouring into India and other regional countries.

In the face of global turbulence, Adani suggested that opportunities for India have accelerated. “India is one of the few relatively bright spots from a political, geostrategic and market perspective,” he added.

Large firms seem no longer willing to sit back and wait for a policy change in China or bet on a single country to solve their sourcing needs. So India is in an excellent economic position to take full advantage of this historic opportunity.

Sign up to receive our latest news!

By submitting this form, I agree to the terms.