Fast-fashion giant Shein – the Singaporean online fashion retailer – is ramping up manufacturing in India, reflecting a strategy move as companies reassess supply chains amid ongoing trade tensions and logistical challenges. The shift is part of a broader trend, as industries from consumer tech to aerospace increasingly look beyond traditional manufacturing hubs.
India’s rise in global supply chains is driven by multiple factors. The U.S.-China trade war, concerns over data security, and supply chain vulnerabilities which have prompted companies to diversify their production locations. Apple, for instance, recently expanded its manufacturing footprint in India, with Foxconn committing $1.5 billion to its iPhone facility in India’s southern state of Tamil Nadu. As a result, 18% of iPhones are now made in India—a significant jump from earlier figures, with projections indicating this could rise to 25% by 2027. Additionally, India’s smartphone exports surged to $24.14 billion in 2024-25, marking a 55% year-over-year increase.
Google has also embraced the trend, partnering with Dixon Technologies to assemble its Pixel smartphones in India, aiming to “double regional hardware revenue” while capitalizing on the country’s expanding consumer base.
Meanwhile, Vietnamese EV maker VinFast is investing $2 billion in a Tamil Nadu plant, hoping to turn India into an export hub. Aerospace giants Airbus and Pratt & Whitney are increasing procurement from Indian suppliers, fueling a 38% rise in aerospace exports year-on-year.
The Indian government is supporting this transition through manufacturing incentives, particularly the “Production-Linked Incentive (PLI) program”, which spans electronics, pharmaceuticals, textiles, and solar modules. Since its 2020 launch, the PLI scheme has attracted over $33 billion in committed investments — a testament to India’s growing appeal as a global production hub.
Rather than replacing existing production giants outright, India is emerging as a key alternative in a diversified global supply chain. Reports suggest India is among the biggest beneficiaries of the “China + 1” strategy, where firms hedge against geopolitical uncertainties by spreading production across multiple nations. Nomura’s 2025 analysis reaffirmed India’s potential in future supply-chain reallocations, highlighting its advantages in labor, market scale, and policy support.
Ultimately, Shein’s manufacturing expansion in India is not just about fast fashion — it’s emblematic of a broader shift. Global firms are no longer solely focused on cost efficiency; they’re prioritizing geopolitical stability, incentives, and risk mitigation. India’s increasing role in global production underscores a new era of supply chain restructuring — one with significant economic implications for businesses and investors alike.
Last updated: December 26th, 2025
