View: How India can be a ‘Plus One’ manufacturing destination while reducing dependence on China

Global companies have stepped up efforts to implement the ‘China Plus One’ strategy, of diversifying their supply chains in the wake of the Covid-19-induced disruptions and US-China trade tensions.

This provides a second chance for India to emerge as a global manufacturing hub. While India has managed to capture the services outsourcing wave to become quite the back office of the world, the ability to expand the manufacturing sector – with its trickle-down effect – will be critical to job creation and balanced growth.

The trillion-dollar question though is, can India become a ‘Plus One’ destination, while simultaneously reducing its own dependence on China? China accounted for 16% of manufactured goods exports globally – and a fifth of imports of both the US and EU – between 2015 and 2019, so that is a tall mountain to climb. A double-quick push on four fronts identified by CRISIL Research can help.