Latest news with #ChinaPlusOne
India Gazette
5 days ago
- Business
- India Gazette
Importing from China to become 'China Plus One' will never work, says Amitabh Kant
New Delhi [India] May 29 (ANI): Importing from China itself to become China plus one will never work, said India's G20 Sherpa, Amitabh Kant, on Thursday, adding that Indian industry has to invest in research and development (R&D). Speaking in a Q&A session at the CII Annual Business Summit 2025 in New Delhi, Kant said that Indian industry should adopt cutting-edge technologies to compete with China, as the industry 'can't copy the Chinese'. Kant further added, 'You'll have to do the technology leapfrogging. You can't copy the Chinese. You have to beat the Chinese with one up. This game of China plus one by importing from China all the time will never work.' The China Plus One strategy typically involves companies diversifying their investments to countries other than China. China Plus One strategy is a focus of government as well as industry. Kant further stated that Indian industry will have to use completely new technologies to disrupt Chinese technologies. 'You have completely new technologies which are going to disrupt the Chinese. Technologies. Why is Indian industry not getting into them? Why are we not sourcing those technologies and using the size and scale of India to beat the Chinese through new technologies? And unless you don't do that, you'll have to do the technology leapfrogging,' he added, suggesting the industry invest in R&D. Asserting that in technology, first movers are never the winners, Kant said that the Artificial Intelligence (AI) race has just begun and urged Indian businesses to build foundational models. India's G20 Sherpa believes that Indian models will provide solutions to many of the challenges faced by countries around the world. 'What we did in digital public infrastructure is that we used open source, open API, globally interoperable models, and those models will be the way forward for us. Therefore, India must build its foundational model. I believe India will provide these foundational models for many areas which have challenges for the world. How to improve learning outcomes, health outcomes and nutritional standards, etc. India will use its 22 languages and thousands of dialects to find solutions to many of the challenges of the world. Indian startups will do some pathbreaking work in this area,' Kant said. Talking about the ease of doing business, India's G20 Sherpa said that the Central government has put in the building blocks and that it is time for states to bring reforms. He also urged the industry to invest in research and development to develop cutting-edge technologies to sustain India's accelerated growth. He also said that Quality Control Orders (QCOs) must be used rationally to ensure Indian industry can grow. To make Indian industry more competitive, he suggested that states give land to the industry on long-term lease and privatise DISCOMS to make them more efficient. He also underlined the need for an Alternative Dispute Resolution (ADR) mechanism to ensure speedy justice, especially in commercial cases. (ANI)
New Straits Times
23-05-2025
- Business
- New Straits Times
No real Asean integration without MSME inclusion, says Samenta
KUALA LUMPUR: There can be no real Asean integration without real micro, small and medium enterprises (MSMEs) inclusion, said the Small and Medium Enterprises Association Malaysia (Samenta). Its national president Datuk William Ng said Asean leaders must place MSMEs at the heart of the region's integration strategy to boost the group's otherwise low intra-regional trade. Policymakers, he added, must seize a "once-in-a-generation" opportunity to address structural barriers holding back MSMEs and to reposition them as key drivers of innovation and resilience in the region. "MSMEs make up over 97 per cent of all businesses and contribute to more than 85 per cent of employment in many Asean countries, yet their contribution to gross domestic product and intra-regional trade remains disproportionately low," Ng said in a statement. He cited various non-tariff barriers, from inconsistent product standards and fragmented licensing systems to slow, non-digitised customs procedures, as key impediments that make cross-border trade costly and inefficient for smaller firms. "These barriers are structural and long-standing. If we are serious about regional economic integration, we must adopt enforceable commitments to reduce them," Ng said, adding that mutual recognition arrangements and wider use of the Asean Single Window must be prioritised. Ng also warned that MSMEs risk being sidelined amid shifting global supply chains, such as the China Plus One strategy and continued geopolitical tensions. "This is an ideal moment for Asean to present itself as a neutral, business-friendly bloc. But that will only be credible if MSMEs are empowered to compete and contribute as equal partners in regional growth," he said. Samenta also urged the region to invest in dedicated innovation grants, establish regional centres for research and development, and support platforms for cross-border collaboration in talent and technology. It also called for more inclusive implementation of Asean's digital and environmental, social and governance agendas, and greater support for creative industries, particularly those led by youth and women, as a new growth frontier for MSMEs. "The Kuala Lumpur Asean Summit must be a turning point. A resilient Asean must begin from the ground up, with our small businesses at the core of our shared future," Ng said.
Hans India
22-05-2025
- Business
- Hans India
Will the Rise of 'Make in India' Lead Our Country to be the Global Manufacturing Hub
There is no doubt that India's growth potential has attracted a lot of attention from multinational corporations around the world. Over the past decade, India has been making steady progress towards becoming a major player in global manufacturing. With the launch of 'Make in India' in 2014 - a program that aims to boost India's manufacturing ability in various sectors like cars, electronics, drugs, and aerospace, our country is now being viewed as a strong contender for the title of the next Global Manufacturing Hub. As India aspires to be the next alternative to China in the manufacturing sector, the 'China Plus One' strategy offers India a great chance to rise as a global manufacturing hub. With many countries opting for the 'China plus One' strategy, India has become an attractive choice for many companies for a variety of reasons. So, what exactly is the 'China Plus One' strategy and why is India capable of being the global manufacturing hub? Understanding the 'China Plus One' Strategy and What It Means for Global Trade For the longest time, companies around the world greatly depended on China for manufacturing, as there was no competition for China in the manufacturing sector. However, rising labour costs, geopolitical tensions, and the impact of the COVID-19 pandemic have pushed global businesses to look for other options as well. This gave rise to the 'China Plus One' strategy – a business approach where companies avoid relying only on China for manufacturing. This strategy doesn't mean abandoning China altogether, but to keep China as a major base and add at least one other country like India, Vietnam, or Mexico to their supply chain to avoid overdependence on China. This strategy is changing the face of global trade, as more countries get a chance to grow their manufacturing sectors. Make In India: Laying a Foundation for India to be a Global Manufacturing Hub 'Make In India' is the answer to make India a global manufacturing hub. It is an initiative launched in 2014 by the Indian government to boost manufacturing in the country. It encouraged both domestic and international companies to manufacture in India by simplifying processes and promoting investment. The initiative focused on key sectors such as electronics, automotive, pharmaceuticals, and textiles. Due to this, our country also saw a rise in Foreign Direct Investment (FDI). Wondering why this is so important? It creates jobs, supports local businesses, and helps the economy grow. Why is India Capable of Being the Global Manufacturing Hub? The present US-China trade tensions have prompted American companies to reduce dependence on Chinese manufacturing. India emerges as a neutral, reliable alternative for US firms looking to shift or diversify their supply chains. So, let's see what makes India the top option for nations to shift their base as the manufacturing hub. Growing and Cost-effective workforce – India has a vast growing workforce with a strong base of English-speaking professionals and competitive wages compared to China. India has a vast growing workforce with a strong base of English-speaking professionals and competitive wages compared to China. Expanding Infrastructure – India has good industrial corridors, ports, and digital connectivity to support global supply chains. – India has good industrial corridors, ports, and digital connectivity to support global supply chains. Thriving Startup ecosystem – The Government of India has encouraged the growth of startups with many government initiatives which in turn encourages innovation and entrepreneurship in the manufacturing industry. The Government of India has encouraged the growth of startups with many government initiatives which in turn encourages innovation and entrepreneurship in the manufacturing industry. Adoption of Digital Technologies – India has always been at the forefront when it comes to adopting the latest digital technologies. It always focuses on digital developments, which help to support global supply chains. Giants like Apple, OnePlus, BMW and more have already established their manufacturing units in India which once seemed unlikely. While challenges exist, with the support of FDI, smart industrial policies, an improving ease of doing business, infrastructure development, and global trends like the China plus one strategy, India is clearly going in the right direction of becoming a Global Manufacturing Hub.
Fibre2Fashion
20-05-2025
- Business
- Fibre2Fashion
India's $100-bn textile export target hinges on MSME: Primus Partners
India's target to hit $100 billion in textile exports in five years revolves largely around how well the country can support and scale its micro, small and medium enterprises (MSMEs), according to a new Primus Partners report, which says textile MSMEs form the backbone of the industry, but are held back now by fragmented value chains, high costs, skill shortages and limited global market access. India accounts for just 4.6 per cent of global textile exports, while China's share is 48 per cent. Titled 'Roadmap for $100 Billion Exports in 5 Years', the consulting firm's report asserts that unlocking MSME potential is key to narrowing this gap and placing India among global leaders in textile manufacturing. India's target to hit $100 billion in textile exports in five years revolves largely around how well the country can support and scale its MSMEs, a Primus Partners report says. Textile MSMEs are held back by fragmented value chains, high costs, skill shortages and limited global market access. RMG and home textiles, accounting for 75 per cent of textile exports, are expected to benefit the most. While geopolitical shifts offer an opportunity for Indian firms, textile MSMEs must evolve to exploit this, the report points out. Readymade garments and home textiles, which account for 75 per cent of India's textile exports, are expected to benefit the most. The shift in sourcing patterns by global brands under the 'China Plus One' strategy makes India an increasingly attractive destination—if MSMEs can keep pace. MSMEs may be aggregated into formal clusters, like farmer producer organisations, enabling them to negotiate better pricing, adopt standardised practices and directly access global buyers, it recommends. These aggregations would also improve creditworthiness and streamline supply chain operations. However, a major constraint is skills. Only 15 per cent of workers in the textile manufacturing sector have received formal training, according to the National Skill Development Corporation. This contributes to a 20-30 per cent loss in productivity. Primus Partners suggests setting up dedicated training centres in tier-II and tier-III cities, especially where PM MITRA Parks are coming up, to bridge this gap. Finance remains another bottleneck. MSMEs often struggle to access affordable credit for modernising machinery or expanding operations. The report recommends expanding operational subsidies and employment-linked incentives to reduce input costs and boost competitiveness. Infrastructural inefficiencies, particularly in logistics, continue to inflate production costs. India's logistics costs stand at 14 per cent of GDP, compared to the global benchmark of 8-10 per cent. The report urges faster development of integrated supply chain parks and better port connectivity to support textile MSMEs in becoming export-ready. Trade access is also essential. While competitors like Sri Lanka enjoy duty-free access to Europe under the Generalised Scheme of Preferences (GSP), Indian exporters face tariff disadvantages. The report calls for accelerated negotiations of free trade agreements with the European Union, the United Kingdom, and the United States to make Indian goods more price-competitive. The report also stresses on the need to integrate textile MSMEs into the growing technical textile segment, projected to reach $274 billion globally by 2027. Fibre2Fashion News Desk (DS)
Time of India
19-05-2025
- Business
- Time of India
Electronics manufacturing sector set for growth: These 3 factors make it a good bet
Strong domestic demand, government support, substantial export opportunities and benefits from the China Plus One strategy are driving the performance of the electronics manufacturing services (EMS) segment. The sector includes design, assembly and testing of components for products ranging from IT, consumer electronics, industrial electronics, auto, telecom equipment, lighting and printed circuit board assembly (PCBA). The sector's historical performance and estimates highlight its resilience. Between 2019-20 and 2023-24, EMS companies (including component manufacturers) recorded revenue CAGR ranging from 8% to 49%. The estimates for the next three years, over 2023-24 and 2026-27, anticipate a healthy revenue growth CAGR between 22% and 69%. The data is compiled from an Axis Capital report released in April 2025. The order books of the EMS companies are growing, aided by a diversified client base and entry into new segments, like smart meters, railways and IT. Moreover, focus on gaining higher wallet share, improved product mix, and cost control measures, have helped the companies maintain healthy profit margins. Electronics demand is expected to remain healthy due to low penetration levels and rising disposable incomes. While the domestic production of electronic goods has increased by a CAGR of more than 17%, the exports of electronic goods have grown at a CAGR of over 20% between 2014-15 and 2023-24, according to a March 2025 PIB release. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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Electric Cars | Search Ads Undo Segment-wise growth drivers Mobile phones have contributed significantly to the EMS segment with the highest CAGR growth in the last four years among other segments. The performance was aided by policy support, like differential duties, Phased Manufacturing Program (PMP) for sub-assemblies, and large-scale electronics PLI (production linked incentives). IT hardware is another key driver of the EMS industry. According to an Emkay report released in the last week of March 2025, strong policy push, rising trust in India as a supply-chain destination and its cost advantage over China are some factors that will support growth in the IT hardware segment. The government has set a target output of $40 billion for the IT hardware segment by 2030. The PCBA segment is gaining significance due to the government's focus on domestic manufacturing, growing demand for miniaturised gadgets and increased digitisation of the medical sector. Live Events PCBAs are required to operate a wide variety of electronic products such as mobile phones, tablets, laptops, desktops, gaming consoles, televisions, washing machines, microwave ovens, ACs, refrigerators, automobiles, medical equipment, and industrial products. The improved value addition is expected to drive orders and revenue growth over the next two-three years. The other segment where EMS companies (especially the contract manufacturers) are growing is the heating, ventilation, and airconditioning segment. The strong demand for RACs (room air conditioners), coupled with government incentives in the form of PLI schemes for white goods, has motivated contract manufacturers to increase manufacturing capacities for RAC. This includes RAC assembly and components, including injection moulding, heat exchangers, and fans. The Axis Capital report believes that efficient resource utilisation, cost competitiveness, a smoother component supply chain, seasonal products, and demand surpassing supply are some of the factors that will continue to encourage contract manufacturing companies to increase manufacturing capacities. Government incentives The government aims to boost electronics industry output to $500 billion by 2030 and has introduced several measures to support the EMS sector growth. These include the Make in India initiative, PLI, and fiscal benefits like duty exemptions. 'Ease of doing business, policy predictability, identification and addressal of disabilities, capitalising on positive geopolitical developments, and incentive support where necessary are identified as key drivers for achieving the electronics output target,' says the Emkay report. Electronics PLI and white goods PLI saw massive success in terms of localising production of mobiles and ACs in India by incentivising assembly; however, inadequate domestic supply of components used in these products has forced the companies to rely on imports. Mobile phones led electronics output Consumer electronics include televisions, digital cameras, PDAs, calculators, audio devices, headphones. Industrial electronics include power electronics, DC/ AC converters. Strategic electronics include military communication systems and satellite-based communication. Source: Axis Capital report. To curb component imports, the government launched the Indian Semiconductor Mission in 2021. The initiative has driven significant progress across the semiconductor ecosystem—including fabrication, packaging, design, and skill development. Also, multiple projects in the semiconductor space, from Tata Electronics, CG Power and Industrial Solutions and Kaynes Technology, received approvals in 2024. Powered up The government also approved the electronics component PLI for non-semiconductor components with an outlay of Rs.22,900 crore in March 2025. The scheme offers turnover-linked, capex-linked and hybrid incentives and aims to develop a component ecosystem in India. The scheme is targeted at increasing domestic value addition and integrating Indian companies into global value chains, says a JM Financial report. Analysts are bullish on PG Electroplast, Dixon Technologies and Avalon Technologies. PG Electroplast The contract manufacturer for consumer electronics and home appliances reported a strong performance in the March 2025 quarter. While the revenue grew by 77% year-on-year, net profit registered 104% growth. It reported growth across product categories (RACs, washing machines and coolers). The management has provided a strong year-on-year revenue and net profit guidance of 30.3% and 39.2% respectively, for 2025-26. It has planned capital expenditure of Rs.800-900 crore for 2025-26 for the establishment of new greenfield facilities, enhancing production capacity and improving operational efficiency. New product launches, deepening client relationships, strong balance sheet, robust order book and strategic investments are some of the key strongholds of the company. PhillipCapital report maintains its earnings estimates for 2026-27 but retains a neutral rating as it expects a moderate growth in the RAC segment in 2025-26. The report mentions that the moderate growth may create challenges in attaining the stated revenue guidance. Dixon Technologies (India) The EMS player offers design-focused solutions in consumer durables, home appliances, lighting and mobile phones. It is expected to report a strong performance in the March 2025 quarter. The revenue and net profit are expected to register a year-on-year growth of 147% and 152.8% respectively, according to consensus estimates of analysts compiled by Reuters-Refinitiv. Strong volumes in the mobile segment and improvement in the refrigerator business are expected to support performance during the quarter, according to a sector preview report by Systematix. New customer relationships in the mobile segment, focus on backward integration to increase value addition, higher ODM (original design manufacturer) mix, focus on high-margin segments and healthy return ratios are some of the key strongholds. Foray into the component production business, such as display module assembly followed by camera module assembly will support margins in the future. Avalon Technologies The integrated EMS company reported a strong performance in the March 2025 quarter with revenue and net profit registering year-on-year growth of 58% and 243% respectively. Strong performance in both India and US businesses aided the revenue growth during the quarter. While gross margins contracted by 240 basis points, EBITDA margins surged 410 basis points, supported by operating leverage gains. The management has guided for an 18-20% growth in revenue for 2025-26 with a significant growth expected in the second half of the current financial year. ƒÜ Continued growth from existing clients and improved execution for new clients in the auto, industrial and clean energy segments will support the guidance. A Motilal Oswal report says that the company¡¦s long-term revenue trajectory is strong, aided by the addition of new customers in the US and Indian markets, order inflows from high-growth or high-margin industries, strategic collaborations, which will enhance competence and margin, and its foray into advanced technology segments. Telecom exports lead in overall electronics segment India electronics exports CAGR (2018-19 to 2023-24)
