China’s Actions and Impact on Foxconn
China has restricted travel of engineers and technicians to Foxconn’s India facilities, crippling operations.
Specialized equipment exports from China to India have also been halted, further hindering production.
This move threatens India’s manufacturing ambitions, particularly its relationship with Apple and Foxconn.
Geopolitical Competition and Strategy
China is using its dominance in specialized machinery and workforce to limit India’s manufacturing growth.
Beijing aims to curb India’s rise as a rival by slowing down its production and influencing global companies’ supply chain decisions.
India benefits from the “China Plus One” strategy, with Foxconn’s expansion in India boosting local manufacturing.
India’s Efforts to Strengthen Manufacturing
India has invested heavily in Apple-Foxconn, with iPhones assembled locally, increasing production value.
The Indian government has also allocated large funds for the ‘Make in India’ program and incentivized smartphone manufacturing under the PLI scheme.
This is part of a broader effort to create a more self-sufficient, robust manufacturing ecosystem.
Long-term Strategy for India’s Growth
India needs to negotiate with Apple and Foxconn to ease Chinese restrictions and secure critical equipment.
To build a holistic manufacturing ecosystem, India must focus on developing ancillary industries, technological clusters, and skilled workers.
Further private investment and a focus on indigenous manufacturers will help India reduce reliance on China for critical components.
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