HONG KONG: High-tech manufacturing in India, backed by billions of dollars in government subsidies, has attracted both cheerleaders and critics.
Optimists point to Apple’s decision to build an alternative supply chain to hedge against China. A quarter of all iPhones now roll out of factories near Chennai, employing tens of thousands.
Sceptics counter that much of this manufacturing is mere final assembly – screwdriver work that adds little value. The fact that a much smaller economy such as Vietnam exports more merchandise, they argue, shows that Prime Minister Narendra Modi’s Make in India initiative remains more hype than reality.
One way to settle the debate is to examine mobile phones – arguably the biggest manufacturing success story of the Modi years – and tally what India exports and what it imports. The verdict is more nuanced than either side suggests.