India has become a beneficiary of the global wave of de-centralization. The picture shows the Foxconn India factory.
The de-sinicization tsunami hits, and India, as a member of the Quad, has a golden opportunity to become a beneficiary of replacing China's hegemony. Morgan Stanley expects India's GDP to grow 6.1% next year and become the world's third-largest economy by 2027. The US think tank also stated that many countries want to get a share of the wave of de-sinification, and India is regarded as one of the reliable democratic supply chains.
Geopolitical factors have started a new cold war, and distrust of China is rising. Coupled with strict epidemic prevention policies, which threaten the production lines of multinational companies in China, India is gaining strength from the restructuring of the world order.
Technology giants Google and Samsung have planned to shift some production capacity to India, and Apple supplier Foxconn is increasing production capacity at its Chennai factory in India. In September this year, Foxconn and Indian mining company Vedanta Ltd planned to build a semiconductor factory in Gujarat, the hometown of Indian Prime Minister Narendra Modi.
Last year, US solar panel manufacturer First Solar also established a solar panel manufacturing plant in Tamil Nadu, India, aiming to weaken China's dominant position in the solar industry supply chain.
Sadanand Dhume, a senior fellow at the American Enterprise Institute, said India hopes to benefit from Western concerns about the growth of Chinese hegemony and try to make itself more attractive in order to eat more cakes in a favorable geopolitical environment .
Foreign direct investment in India has surged in recent years, hitting an all-time high of $81.97 billion in 2020-21.
Benefiting from the wave of decentralization, Morgan Stanley predicts that India's GDP will grow by 6.1% next year, and it will become the world's third largest economy in 2027. By 2031, manufacturing will account for 21% of India's GDP from the current 15.6%, doubling its export market share.
