Business & Economy

India expresses ambition to become the world’s factory in Davos

Davos, Switzerland, Jan 18 (EFE).- India, at the Davos Forum on Wednesday, expressed its ambition to become the factory of the world, a title often attributed to China, and lead manufacturing and supply chains to achieve a gross domestic product (GDP) of $10 trillion in a decade.

“This iPhone 14 is made in India, and now quite a few parts of it are now getting done in India. So that makes a huge difference,” Railway Minister Ashwini Vaishnav said at the World Economic Forum (WEF) in Davos.

In the absence of Indian Prime Minister Narendra Modi at Davos, Vaishnav was accompanied Women and Child Development Minister Smriti Irani and Tata Sons President Natarajan Chandrasekaran.

At the WEF, India outlined its ambitions to dethrone China as the world’s top manufacturing hub, after the disruption in production chains caused by the coronavirus pandemic.

“Component supply chain is coming to India, home grown companies are coming up with components as well as many critical parts of the supply chain. And that is what is very very encouraging,” said Vaishnav.

The Indian government has begun boosting electric vehicle manufacturing with production-linked incentives, which the minister said will be extended to “more sectors.”

Chandrasekaran, who heads of one of the most influential conglomerates in the south Asian country, underscored India’s opportunity to “take the lead” in building an alternative and resilient ecosystem for the world.

“We need partners, we need other countries, we need US companies, we need western companies, who are willing to work with you on a transparent basis,” said Chandrasekaran.

With regards to China, which otherwise is known as the world’s factory, he stressed that “it is not about replacing somebody.”

India, whose population is expected to exceed China this year, looks to capitalize on exports to maintain consistent GDP growth of 6-8 percent with moderate inflation.

The country seeks to achieve an economy of $5 trillion by 2025, which is double that of of 2019.

According to World Bank estimates, India’s GDP will grow by 6.6 percent in the next fiscal year. EFE


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