China on cusp of $1trn trade surplus as exports surge
Shipments abroad soared 36% last month from a year earlier and imports jumped 31%.
Hyundai Motor Group has pledged $15.5 billion to bolster India's automotive sector, signaling a shift in multinational manufacturing strategies amid geopolitical tensions and supply-chain risks. India is attracting a record $351 billion in greenfield foreign investment between 2021-25, nearly double China's $159 billion. However, turning this opportunity into a durable manufacturing advantage requires addressing persistent weaknesses in India's industrial capabilities.
The pandemic and US-China tensions have exposed the risks of concentrated supply chains, prompting companies to diversify their sourcing strategies. While multinationals are not abandoning China, they are increasingly developing additional manufacturing bases in countries like India, Malaysia, Indonesia, and Vietnam. India's greenfield investment rose 61% between 2016-20 and 2021-25, compared to China's 54% decline, with Malaysia recording a 125% increase and Indonesia a 34% rise.
Hyundai's $15.5 billion investment plan, active from 2026 to 2032, covers manufacturing capacity, testing tracks, and a dedicated investment entity. The company already produces over 1.4 million vehicles annually in India, employing more than 24,000 people. Hyundai's R&D and testing initiatives suggest a wider role for India in engineering and vehicle development.
Hyundai's strategic shift in India contrasts with its relatively stagnant manufacturing presence in China. The automaker remains active in both markets, underscoring the evolving priorities of Asian manufacturers. Beyond automobiles, electronics, semiconductors, and solar manufacturing are other industries attracting investment in India, driven by government incentives and relaxed investment rules for neighboring countries, including China.
While India offers significant opportunities, the investments announced vary in maturity. As multi-industry commitments emerge, India's attractiveness to multinational corporations grows, solidifying its position as a key player in the global manufacturing landscape.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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