OPINION:
Recently, India has been making headlines in the global tech manufacturing sphere thanks to the entry of Google’s Pixel 8 manufacturing into its domain.
The news came as a significant milestone, marking the South Asian nation’s accelerating pace towards becoming a high-quality manufacturing hub for cutting-edge mobile technology. Google’s move aligns with the broader trend of global tech giants like Apple and Samsung expanding their manufacturing bases in India, further cementing the nation’s position in the global supply chain.
For instance, Apple has been assembling iPhones in India for some time, and this localization strategy has proven to be a win-win situation. Not only does it allow Apple to meet local demand efficiently, but it also mitigates the impact of import duties. Similarly, Samsung has set up the world’s largest mobile phone manufacturing facility in India, which showcases the nation’s capacity to cater to the production needs of global tech giants.
The decision by Alphabet Inc’s Google to manufacture its flagship Pixel 8 smartphone in India is a testament to the growing appeal of the country as a manufacturing destination. The company, in its statement, highlighted India as a priority market for Pixel smartphones and expressed its commitment to bringing the best of its hardware and software capabilities to the Indian populace. This move by Google is not an isolated one; it reflects a broader shift in the global supply chain dynamics, especially from China to India.
The shift in supply chain dynamics is palpable. A report revealed a whopping 400% increase in U.S. and European greenfield investment into India between 2021 and 2022, while investments in China dropped significantly during the same period. The economic tides are clearly turning, with India positioning itself as an attractive alternative for sourcing amid the quest for diversified supply chains due to disruptions caused by policies like China’s controversial Belt and Road Initiative.
It is estimated that the Chinese economy will incur a $3 trillion loss by 2030 due to this shift. Although the precise figures were not easily verifiable, the World Economic Forum notes that amidst this shift, China’s prospects are taking a hit, with chief economists predicting a potential disturbance in two-thirds of China’s total Gross Domestic Product (GDP) due to nature loss by 2030. This economic predicament for China augments the favorable shift towards India as a reliable and economically viable manufacturing hub.
On the flip side, compared with China, the overall democratic fabric of India presents a stabler and more trusted environment for global supply chains. The engagement of tech behemoths like Apple, Google, and Samsung with India’s manufacturing landscape is a vivid endorsement of the nation’s emerging prominence in high-quality tech manufacturing. The ’Make in India’ initiative is indeed acting as a catalyst, paving the way for these tech giants to explore the myriad opportunities that India offers.
The resonance of India’s manufacturing capabilities with global tech giants augments not only the country’s economic outlook but also its strategic position in the global supply chain. It’s a win-win scenario where companies can leverage India’s skilled labor force and favorable policies while India benefits from enhanced technological advancements and economic investments.
As India continues on this trajectory, the ripple effects will likely resonate through the global supply chain, marking a new era of high-quality tech manufacturing rooted in Indian soil. The journey of Google Pixel 8’s manufacturing is just a precursor to the monumental shifts awaiting the horizon of global tech manufacturing.
• Sean Woo is President and CEO of Center for Civic Culture Studies
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