Global Firms Eye India As Alternative To China Supply Chains
Date
5/28/2024 2:19:55 PM
(MENAFN- KNN India) New Delhi, May 28 (KNN) Global manufacturers are initiating talks with Indian companies to explore shifting parts of their supply chains out of China in the wake of the COVID-19 pandemic disruptions.
Many multinational firms suffered widespread disruptions as China enforced strict lockdowns to contain the virus outbreak that began in Wuhan.
Companies interested in sourcing auto components and Electronics from India are leading the inquiries, according to industry executives.
"A lot of supply chain was coming from China and today...some of them will migrate to countries like India, Vietnam and others," said Pankaj Munjal, chairman of auto parts maker Hero Motors Co., which has received several such inquiries, reported mint.
The demand is also coming from Indian firms heavily reliant on China inputs before getting upended by the coronavirus-induced shutdowns there.
While India hasn't yet announced measures to attract supply chains, Japan has earmarked USD 2.2 billion to help its firms shift production out of China.
"There is a clear negative sentiment against China. We have received requests for supply from India," said Amrit Manwani of the Electronic Industries Association of India, adding inquiries have come from U.S., Japanese and South Korean firms.
Among those showing interest are U.S. medical electronics makers Teledyne and Amphenol as well as medical device company Johnson & Johnson.
Most Indian auto firms currently import some components like fuel injection systems from China but are now looking for alternative sources.
(KNN Bureau)
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