In a significant statement highlighting India's rising economic stature, JB Park, the head of Samsung India, has declared that global corporations are actively beginning to "de-couple" their large-scale manufacturing operations from China. He attributes this strategic shift to India's compelling advantages, including the government's production-linked incentive (PLI) schemes and the country's massive, expanding consumer base.
India's Perfect Storm for Global Manufacturing
Park, who has led Samsung's Indian operations for three years and spent a total of eight years in the country, shared these insights in a recent interview. He pointed out that the combination of policy support and market potential is solidifying India's position as a premier destination for multinational giants. India currently contributes approximately 10% to Samsung's worldwide revenues, with a turnover of Rs 1.1 lakh crore in FY25, marking an 11% growth.
"It is already happening. In my eight years here, I have seen the transformation. It's a matter of time before global brands de-couple with China and bring more opportunity to India," Park stated, when questioned about India's competition with China and Vietnam for global manufacturing projects. He even drew a comparison, noting, "The PLI policy is enabling this. Gurugram looks like Singapore to me now."
Harnessing Indian Talent for Global Innovation
Beyond manufacturing, Park enthusiastically applauded India's deep reservoir of engineering and software expertise. He emphasized that this talent pool is actively powering Samsung's global product innovations, including ambitious work in the semiconductor domain. Samsung operates three R&D centers in India – located in Delhi, Noida, and Bangalore – employing over 10,000 engineers.
"India's strongest resource is brilliant engineers. You see, today around 30% of Fortune 500 CEOs are Indian nationals, and that's just the start of India’s potential. Software and AI must be the strength of India in the next 30 years," Park remarked. He clarified that the work done in these Indian centers is not limited to local needs but is integral to the company's global platform, spanning mobile phones, consumer electronics, TVs, and refrigerators.
Policy Support and Future Challenges
Park acknowledged the Indian government's proactive steps in improving the business climate for multinational corporations. He mentioned that the government is already working on 'PLI 2.0' and re-evaluating regulatory frameworks like the Bureau of Indian Standards (BIS) to make processes faster and more business-friendly. He also credited GST rate reductions for boosting domestic consumption, particularly in segments like large-screen televisions and air conditioners, which in turn helps generate employment.
On the competitive landscape, Park addressed the challenge from Chinese smartphone brands like Vivo and Oppo, suggesting a need to monitor unfair pricing practices that have led to tariffs in other countries. Regarding Apple's rapid growth in India, he offered a contrarian view, suggesting the brand's appeal might be a passing trend. "Holding an Apple logo is a trend, but I think it won't prevail for more than five years," he said.
Park concluded with a forward-looking caution, noting that while India boasts cost-effective labor, the future belongs to automation. He advised that the country should focus on developing a workforce skilled in automation, artificial intelligence, and efficient manufacturing processes to maintain a long-term advantage as robotics transform traditional factory floors.
