Major Companies Flee China to Set Up Shop in India

In a significant shift in global manufacturing dynamics, major multinational corporations are increasingly relocating their production facilities from China to India.

This trend is reshaping global supply chains and positioning India as a rising manufacturing hub.

Apple is leading this exodus.

Apple Inc. has significantly expanded its manufacturing footprint in India.

In the fiscal year 2023-24, Apple exported over $10 billion worth of iPhones from India — double the figure from the previous year — thanks in part to India’s Production-Linked Incentive (PLI) scheme.

Apple CEO Tim Cook recently said, “We do expect the majority of our iPhones to be made in India for the U.S. market.”

Samsung has already opened the world’s largest mobile phone factory in Noida, Uttar Pradesh, and plans to increase production from 68 million to 120 million devices annually at the site.

The move marks Samsung’s deepening commitment to India amid China’s growing political and economic risks.

Google has announced that Pixel smartphones will be manufactured in India starting in 2024.

Asus is also shifting its primary manufacturing hub from China to India to take advantage of India’s PLI scheme for IT hardware.

Several key factors are driving this exodus from China.

Geopolitical instability: U.S.-China tensions, COVID-era disruptions, and fears of future sanctions have spooked many firms.

Labor and regulatory expenses in China have surged while companies are also aiming to “China-plus-one” their supply chains, and India is the most attractive alternative.

India’s advantages are stacking up. A vast labor force, improving infrastructure, and supportive policies under the “Make in India” initiative.

If the current trajectory continues, experts believe India could rival or even surpass China in certain manufacturing sectors very quickly.

The global manufacturing map is being redrawn — and India is at the center of it.