'India within pole-vaulting distance to be able to replace China as factory of the world'
‘’We are well into the run-up. The Indian economy is growing at 7 per cent when many countries are heading for recession,’’ Mahindra said.
Mahindra Group Chairman Anand Mahindra
MUMBAI: India is within a pole-vaulting distance of being able to replace China as the factory to the world and the suspicions of the neighbour’s ambitions and post-Covid supply chain disruptions have also worked in the country’s favour, Mahindra Group Chairman Anand Mahindra said on Friday.
In his address to the shareholders of Mahindra & Mahindra at the company’s AGM, he used the metaphor of a pole vaulter, who needs multiple factors to converge for a successful pole vault and said the comparison is ‘’even more apt in today’s times because India is ready to pole vault’’.
‘’We are well into the run-up. The Indian economy is growing at 7 per cent when many countries are heading for recession,’’ Mahindra said.
Geopolitical tensions with China are pushing many manufacturers in India’s direction, he said, adding, ‘’But that is not the only reason. Economics also enters into it. India actually has the cheapest manufacturing costs in the world. It is not surprising that, of late, companies of the stature of Apple, Samsung, Boeing, and Toshiba have shifted a significant amount of their manufacturing activity to India.’’
It is not just the Western nations, Mahindra said, adding, ‘’Would it surprise you to know that the second largest investor in India is Singapore? We are within pole-vaulting distance of being able to replace China as the factory of the world.’’
He further said, ‘’Suspicions of China’s ambitions and post-COVID supply chain disruptions have also worked in India’s favour. And we are well placed to take advantage of this. We have massively improved our performance on the World Bank’s Logistic Performance Index. Our thrust on infrastructure is paying off.’’
As the world functions digitally today, Mahindra said India is in an enviable position on digital infrastructure. ‘’The cost of 1 GB of mobile data in India is the cheapest among major economies, and how. So is the cost of mobile internet. We are 73 times cheaper than South Korea, which has the highest cost of mobile data among major economies. I believe India is generating enough kinetic energy for a spectacular pole vault takeoff,’’ he asserted.
India’s ‘’raucous, chaotic, and vibrant’’ democracy is the pole that will convert the kinetic energy of 1.3 billion people into the gravitational energy that is needed to vault higher, faster, stronger, he added.
