India can replace China as the ‘factory to the world’, Mahindra & Mahindra (M&M) Chairman Anand Mahindra said while highlighting that a number of marquee companies have already shifted their output to India.
Addressing shareholders virtually at M&M’s 77th annual general meeting, Mahindra said, “Geopolitical tensions with China are pushing many manufacturers in India’s direction.”
“It is not surprising that, of late, companies of the stature of Apple, Samsung, Boeing, and Toshiba have shifted a significant amount of their manufacturing activity to India. We are within pole-vaulting distance of being able to replace China as the factory to the world,” the 68 year old industrialist added.
Apple made $7 billion worth of iPhones during FY23 from a factory in India, reducing its reliance on China. The US-based tech giant had announced ambitions of making 25% of all iPhones in India.
Tesla, the world’s most valuable car company, will have a manufacturing presence in the country, bringing with it its own supply chain network. Reports state that India will play host to the world’s most affordable Tesla expected to be priced at around Rs 20 lakh.
“Suspicions of China’s ambitions and post-Covid supply chain disruptions have also worked in India’s favour. And we are well placed to take advantage of this. Our thrust on infrastructure is paying off,” Mahindra added.
He also mentioned that while many countries are heading for recession, the Indian economy is growing at 7%.
“The world is at a stage where China’s political ambitions are being viewed with alarm, and India is seen as an obvious buffer and counterbalance to China. There are many countries wooing us today,” Mahindra added.