Google joins Apple and Samsung in choosing India as a manufacturing base
Google, the tech giant behind the popular Pixel smartphones, has announced that it will manufacture its flagship Pixel 8 device in India. The company said that India is a priority market for Pixel smartphones and that it is committed 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 is driven by several factors, such as the rising labor costs and geopolitical tensions in China, the growing demand and innovation potential in India, and the supportive policies and incentives offered by the Indian government.
Google’s decision follows the footsteps of other global tech giants like Apple and Samsung, who have already expanded their manufacturing bases in India. 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.
India offers a stable and attractive environment for tech manufacturing
The decision by Google and other tech titans to manufacture their products in India is a testament to the growing appeal of the country as a manufacturing destination. India offers a stable and attractive environment for tech manufacturing, thanks to its democratic fabric, large and skilled workforce, vibrant startup ecosystem, and improving infrastructure.
India also has a huge domestic market for tech products, with over 1.3 billion people and more than 700 million internet users. The demand for smartphones, laptops, tablets, and other gadgets is expected to grow exponentially in the coming years, as more people access digital services and platforms. India also has a strong potential for innovation and development in the tech sector, with many startups and entrepreneurs working on cutting-edge solutions for various problems.
The Indian government has been supportive of the tech manufacturing industry, by providing various incentives and subsidies under schemes such as Make in India, Production Linked Incentive (PLI), Modified Special Incentive Package Scheme (MSIPS), and Electronics Manufacturing Clusters (EMC). These schemes aim to boost the domestic production of electronic components and devices, reduce the dependence on imports, create employment opportunities, and enhance the competitiveness of Indian manufacturers.
India challenges China’s dominance in the global supply chain
The entry of Google into India’s tech manufacturing landscape is a significant milestone, as it marks the nation’s accelerating pace towards becoming a high-quality manufacturing hub for cutting-edge mobile technology. It also challenges China’s dominance in the global supply chain, which has been eroding due to various factors.
China has been facing increasing pressure from the US and other countries over its trade practices, human rights violations, territorial disputes, and environmental issues. The COVID-19 pandemic has also exposed the vulnerabilities and risks of relying too much on China for sourcing critical components and products. Many companies have been looking for alternative suppliers and locations to diversify their supply chains and reduce their exposure to China.
According to a report by Kearney, a global consulting firm, there was a 400% increase in US and European greenfield investment into India between 2021 and 2022, while investments in China dropped significantly during the same period. The report also estimated that China’s economy will incur a $3 trillion loss by 2030 due to this shift.
India has emerged as an attractive alternative for sourcing amid the quest for diversified supply chains. India has several advantages over China, such as its democratic system, its rule of law, its respect for intellectual property rights, its openness to foreign investment, and its alignment with global norms and values.
India becomes a key player in shaping the future of tech
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. It also signifies that India is becoming a key player in shaping the future of tech, not only as a consumer but also as a producer.
India’s rise as a tech manufacturing powerhouse will have positive implications for its economy, society, and diplomacy. It will create more jobs, boost exports, attract foreign capital, foster innovation, enhance national security, and strengthen its strategic partnerships. It will also enable India to play a more active role in global forums such as G20, BRICS, SCO, etc., where it can leverage its tech capabilities to advance its interests and values.
India’s success story in tech manufacturing is an inspiration for other developing countries who aspire to join the digital revolution. It shows that with the right vision, policies, and partnerships, it is possible to overcome the challenges and seize the opportunities in this dynamic sector.
