India wants a shot at becoming a manufacturing hub, a goal it must make progress on if the $3.4 trillion economy is to be a key driver of global growth.
Prime Minister Narendra Modi has rolled out a mix of tariffs and incentives to lure companies to make in India, with many seeking to diversify from China amid rising geopolitical risks.
So far, it’s gaining ground in smartphone manufacturing with firms like Samsung Electronics Co. and Apple Inc. expanding production in India even though supply chain localisation is far off. To repeat this initial success, the country needs to overcome several challenges, including a shortage of skilled labor.
Done right, it promises to create millions of jobs — but the risk of shipping delays and inflated costs looms.