The year that was: India was vocal for local manufacturing in 2023

The year 2023 was a pivotal one in India’s journey towards becoming a global manufacturing powerhouse, with a concerted effort being made by the government to this end. With a new production-linked incentive (PLI) scheme, the country witnessed a surge in investments and production across crucial sectors. Ahead of a key election year, the government promoted its schemes, including the Make in India initiative and the Indian Semiconductor Mission (ISM).

Major geopolitical affairs also helped India in attracting companies looking for a safe haven. The worsening US-China trade war pushed Apple to diversify away from China and redraw its manufacturing strategy with India at the centre. The Russia-Ukraine war wreaked havoc on supply chains of key materials, including semiconductors, which incentivised countries to consider India as a more stable alternative to set up shop.
VinFast: Vietnamese electric vehicle (EV) maker VinFast Auto, deemed Tesla’s rival, is also shopping for land for its planned manufacturing facility, and has already reviewed two locations in Tamil Nadu.

As the calendar turns on 2024, India’s semiconductor and local manufacturing landscape stands at a pivotal juncture. While 2023 witnessed significant strides, the seeds sown now hold the potential for a transformative yet challenging road ahead.