NEW DELHI: India is within pole-vaulting distance of being able to replace China as the factory to the world and suspicions over 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, Mahindra 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 to 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.
He stressed on taking the fullest advantage of India's increasing stature on the world stage.
"The world is at a stage where China's political ambitions are being viewed with alarm, and India is seen as an obvious buffer and counterbalance to China. There are many countries wooing us today," Mahindra said, adding that India's foreign policy has been outstanding and the country handled the Ukraine crisis well.
India is one of the few nations whose economy and oil supplies are not affected, and the country has pulled off the trick of being seen as a helpful and neutral party, he said.
"We are contending for political leadership in South Asia. Leadership of the G20 has amplified our voice in the climate change and environment scenario. We are more respected internationally than ever before," Mahindra 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.