# Global firms eye India as supply chain diversification hub 2026-08-21T17:16:13+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 1 independent outlet Covid, chip shortages, tariffs and wars have made global companies prioritise supply chain resilience and security over low cost alone. India is emerging as a strong candidate for manufacturing bases, offering large manpower, diverse skills and a growing domestic market. Enquiries from eastern and European firms have risen after the West Asia and Ukraine crises, though US companies show less interest due to strong domestic growth. Concerns remain over ease and cost of doing business. Power and logistics costs have improved, but land acquisition processes are complex and labour laws are difficult to navigate. Approval processes vary across states, causing delays. Large investors may get central government support, but companies must choose states carefully and plan for the long term. ## Indian Opinion Analysis India's pitch as a 'China plus one' alternative has gained urgency after the pandemic exposed single-source vulnerabilities. The government has launched production-linked incentive (PLI) schemes for 14 sectors, including electronics, automobiles and pharmaceuticals, worth about Rs 1.97 lakh crore. However, ground-level reforms in land, labour and logistics remain patchy, with state-level implementation varying widely. The next signal to watch is the pace of foreign direct investment (FDI) inflows into manufacturing in the coming quarters. ## Coverage - bazaar.businesstoday.in Straightforward business analysis with no political or ideological slant This story was synthesised by AI from the source linked above. Tags: FDI, India, manufacturing, PLI scheme, supply chain Canonical: https://indianopinion.org/global-firms-eye-india-as-supply-chain-diversification-hub/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/global-firms-eye-india-as-supply-chain-diversification-hub/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes. How this brief was made: an AI model read the report linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/