Global giants shift manufacturing to India amid strategic realignments

Global firms like Ford, HP, and LG expand manufacturing and R&D in India, driven by policy support, skilled talent, and supply chain shifts

India is rapidly emerging as a preferred global manufacturing hub, with multinational corporations from the U.S. to South Korea deepening their investments beyond local assembly. Recent developments show a strategic pivot toward high-value production, research, and exports, driven by policy incentives, geopolitical shifts, and India’s vast skilled workforce.

Ford Motor Company has announced plans to repurpose its Chennai facility to produce over 235,000 high-end engines annually for export markets. Notably, these engines will bypass the U.S., reflecting a broader trend where companies prioritize cost efficiency and supply chain resilience over domestic production mandates. Ford’s move underscores confidence in India’s automotive ecosystem, which already supplies components to Europe, Africa, and Asia.

In the electronics sector, HP has committed to manufacturing all its laptops in India within the next three to five years. This aligns with India’s Production Linked Incentive (PLI) schemes and the broader Make in India and Digital India initiatives. The shift not only strengthens local value chains but also positions India as a competitive export base, potentially rivaling China and Southeast Asia.

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South Korean conglomerates are also expanding their footprint. LG Electronics is exploring relocating capital goods production from Korea, China, and Vietnam to India. Meanwhile, LG Corp is investing ₹1,000 crore to set up a global R&D center in Noida, employing around 500 professionals. This dual focus on manufacturing and innovation reflects India’s growing appeal as a comprehensive industrial ecosystem.

Three key factors fuel this transformation: consistent government policy, a young and technically skilled workforce, and global supply chain diversification amid U.S.–China tensions. India is no longer seen as a low-cost alternative but as a parallel center of manufacturing excellence capable of serving global markets with scale and sophistication.