In the rapidly shifting landscape of global trade, India is positioning itself as an increasingly attractive alternative to China, particularly in manufacturing and supply chain operations. According to recent insights from Transport Intelligence (Ti), India is emerging as a strong contender in the China-plus-one strategy, as global companies seek to diversify their operations away from an over-reliance on Chinese manufacturing.
A Bloomberg report highlights a major shift: this year, US tech giant Apple will manufacture its top-tier iPhone Pro and Pro Max models in India for the first time. Currently, India accounts for 14% of Apple’s global production, a figure expected to rise as the company’s assembly operations expand. Foxconn, Apple’s sub-contractor, has already begun training thousands of workers at its plant in Tamil Nadu, marking a pivotal shift in Apple’s global strategy.
Historically, Apple has relied heavily on China for both components and assembly, but its recent move into India signals a new chapter for the company. However, Ti analysts remain cautious about how much Apple’s Indian production will still depend on Chinese component suppliers. Thomas Cullen, an analyst at Ti, remarked: “The shift to Indian production by the American company has been remarkably rapid,” further noting the speed and scale at which Apple has embraced India as a production hub.
India’s Emergence as a Viable Manufacturing Hub
Cullen highlighted that while non-Chinese competitors had traditionally favoured South-east Asia, particularly Vietnam, for mobile phone assembly, Apple’s focus on India marks a significant divergence from this trend. Until recently, India was not seen as the frontrunner in the China-plus-one strategy. In fact, it was often regarded as “not very attractive” due to a range of logistical challenges.
“India had real problems with ports, roads, and internal borders,” said Cullen. “There was also a perception that the workforce lacked the necessary skills for large-scale manufacturing.”
Yet, India has made significant strides in improving its logistics infrastructure. Recent investments in Mundra Port, the addition of hundreds of thousands of kilometres of new highways, and upgrades to airfreight capabilities, such as IndiGo introducing freighter aircraft and the restructuring of Air India, have dramatically enhanced the country’s logistics network. This progress, coupled with increasing demand, makes India a compelling option for companies looking to diversify their supply chains.
The Role of Real-Time Supply Chain Visibility in Managing Risk
However, even as India rises as a manufacturing hub, businesses face a complex global trade environment. The “violent” restructuring of supply chains, driven by geopolitical tensions, cost pressures, and sustainability imperatives, makes it vital for companies to manage risks more effectively. Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) need real-time data insights to navigate these challenges, especially in new and emerging markets like India.
Supply chain and climate impact visibility software can provide these stakeholders with critical insights, enabling them to make informed decisions quickly. By offering real-time data on everything from shipment delays to environmental impacts, such technology helps companies mitigate risks and optimise their supply chains.
India’s evolving logistics infrastructure, while promising, still comes with unpredictability. For companies to fully capitalise on India’s manufacturing potential, they must integrate visibility tools into their supply chain management to counteract potential disruptions and maintain agility in an increasingly competitive market.
India’s rapid transformation into a manufacturing hub signals a significant shift in global trade dynamics, especially as companies like Apple look to reduce their dependency on China. With the right investments in infrastructure and supply chain visibility, India can continue to solidify its position on the global stage. But for BCOs and LSPs, embracing real-time data insights will be key to navigating the risks and maximising the opportunities that come with this shift.