Leading American corporations, including Tesla and Apple, are shifting their focus towards India as a production hub to reduce their reliance on China in the midst of escalating tensions between Beijing and Washington.
Tesla CEO, Elon Musk, recently met with the Indian Prime Minister, Narendra Modi, in New York. Sources indicate that Tesla is in discussions with Indian authorities about establishing a factory in the country, which would add to its existing production locations in the US, China, Germany, and Mexico.
This move is not isolated, as it is part of a wider trend for US companies to shift their supply chains outside of China. India is increasingly appealing to US companies, particularly given the country’s young and emerging workforce, gradual reforms, and a large consumer economy.
The ongoing US-China trade war, coupled with the COVID-19 pandemic, has disrupted global supply chains leading to an increased focus on India, providing American companies with a greater outlook for growth.
In recent years, India has made significant efforts to improve its business environment by streamlining bureaucratic processes, which has attracted several enterprises.
Moreover, the government has been raising its efforts to promote electric vehicles, such as EV and solar power. It is not just Tesla, as Apple has also started exporting its ‘Made in India’ iPhones to various European markets, creating job opportunities for people in India.
By diversifying their operations to India, these US companies will not only be taking advantage of a fast-growing economy, but will also be creating jobs and making significant contributions to the country’s development in the process.
