India is poised to surpass China as the world’s top manufacturing hub, marking the beginning of a major transition. Surprisingly, India has benefited from the concerns around its neighbor’s ambitions as well as interruptions in the post-Covid supply chain. During his speech to the shareholders of Mahindra & Mahindra at the company’s annual general meeting, Anand Mahindra, Chairman of the Mahindra Group, echoed these ideas.
Mahindra compared India’s predicament to that of a pole vaulter, who needs a complex convergence of many different circumstances for a good leap. Mahindra used the example of the sport of pole vaulting. He emphasised how timely this comparison was by stating that “India stands poised for this pole vault.” The economic direction is clear; while other countries are grappling with the spectre of recession, India is continuing to rise with a growth rate of 7%.
Mahindra shed light on the geopolitical undercurrents, particularly conflicts with China, that are shifting the industrial compass towards India. He emphasised that this exodus is also orchestrated by economics. It is not surprising that important businesses like Apple, Samsung, Boeing, and Toshiba have moved significant production segments to the country given that manufacturing costs in India are among the most competitive in the world.
Mahindra disclosed a less-expected truth when he went beyond Western countries: Singapore is the second-largest investor in India. This, he suggested, highlights India’s ability to displace China as the world’s leading manufacturer.
In addition to these factors, India has benefited particularly from concerns about China’s aspirations and supply chain disruptions brought on by the post-Covid era. Mahindra asserted with assurance that India has skillfully positioned itself to benefit from these conditions, as seen by its notable increase on the World Bank’s Logistic Performance Index and its steadfast concentration on infrastructure development.
Mahindra spoke extensively about India’s digital capabilities, emphasising the country’s beneficial digital infrastructure. In comparison to other major economies, India offers the lowest prices for 1 GB of mobile data and mobile internet, with South Korea charging the highest prices. Mahindra claimed that India has the kinetic energy required for a fantastic pole vault takeoff thanks to this foundation.
Mahindra argued that India’s democracy, which he described as “raucous, chaotic, and vibrant,” acts as the fulcrum that converts the kinetic energy of 1.3 billion people into the gravitational energy required to soar to greater heights with unmatched speed and strength.