In a significant endorsement of India's economic trajectory, the head of Samsung's Southwest Asia operations has stated that global brands are actively beginning to diversify their large-scale manufacturing bases beyond China, with India emerging as a prime beneficiary. JB Park, President & CEO of Samsung Southwest Asia, pointed to government incentives and a vast consumer market as pivotal factors boosting India's appeal to multinational corporations.
PLI Policy and Infrastructure Transformation
Park, who has led Samsung's Indian business for three years and spent a total of eight years in the country, credited the government's Production-Linked Incentive (PLI) schemes for accelerating this shift. He revealed that the government is already working on PLI 2.0, indicating a sustained policy push. Furthermore, regulatory processes in areas like the Bureau of Indian Standards (BIS) are being re-evaluated to create a faster and more business-friendly environment.
"It is already happening. In my eight years here, I have seen the transformation. It's a matter of time before global brands diversify from China and bring more opportunity to India," Park stated. He even drew a striking comparison, noting, "Gurugram looks like Singapore to me now," highlighting the infrastructural development.
India's Market and Talent Powering Global Innovation
India is not just a manufacturing destination but also a critical market and innovation hub for Samsung. The country currently contributes approximately 10% to Samsung's worldwide revenues, with the Indian entity reporting a turnover of Rs 1.1 lakh crore in FY25, marking an 11% growth. Park emphasized that adoption of new technologies, particularly those built around Artificial Intelligence (AI), is among the highest in India globally.
He reserved special praise for India's engineering and software prowess, which Samsung is harnessing for its global product development. "India's strongest resource is brilliant engineers," Park said, adding that around 30% of Fortune 500 CEOs are Indian nationals. "Software and AI must be the strength of India in the next 30 years."
Samsung's three R&D centres in Delhi, Noida, and Bangalore, employing over 10,000 engineers, work on global platforms. Their projects span mobile phones, consumer electronics, TVs, and refrigerators. Notably, the company has initiated semiconductor-related R&D work in Bangalore, though Park did not comment on plans for a local fabrication unit.
Navigating Competition and Future Challenges
While acknowledging stiff competition from Chinese brands like Vivo and Oppo, as well as Apple, Park stressed the need to monitor unfair pricing practices. He also highlighted the transformative impact of GST rate cuts, which boosted consumption not only for large-screen TVs and ACs but also for the broader economy by triggering domestic demand and job creation.
Looking ahead, Park identified automation and robotics as trends that will reduce the advantage of low-cost labour. He advised that the government should focus on training manpower to become proficient in handling advanced automation, AI, and efficient manufacturing processes to stay competitive.
Park's insights paint a picture of an India that is rapidly evolving from a consumption story to a integrated global hub for manufacturing, innovation, and talent, strategically positioned in the 'China plus one' calculus of the world's largest corporations.
