Geopolitical competition in the Indo-Pacific, coupled with vulnerabilities revealed by the COVID-19 pandemic, has led Western economies (the US, EU, and allies) to pursue “de-risking” and “friend-shoring” policies. India is positioned within these strategies both as an alternative manufacturing hub and as a strategic partner to balance China’s regional influence.

1. India as an Alternative to Reduce Supply Chain Dependence on China

• Manufacturing De-risking (The “China+1” Strategy): Western multinational enterprises are expanding production lines in India to diversify away from exclusive reliance on Chinese factories.
  • Example: Apple Inc. manufactures a growing share of its global iPhones in India, supported by the Production Linked Incentive (PLI) scheme.
• Bilateral Critical and Emerging Technology Partnerships: The US-India Initiative on Critical and Emerging Technology (iCET) and the India-EU Trade and Technology Council (TTC) support cooperation in semiconductor manufacturing, AI, telecommunications, and quantum computing.
• Multilateral Supply Chain Alliances: India participates in the Indo-Pacific Economic Framework (IPEF) Supply Chain Agreement and the Supply Chain Resilience Initiative (SCRI with Japan and Australia) to build resilient sourcing networks for critical components.
• Clean Energy Diversification: Western investments support Indian manufacturing of solar photovoltaic modules and storage batteries, addressing Chinese dominance in clean-energy supply chains.

2. India as a Strategic Ally to Counter China’s Political and Economic Dominance

• Anchoring the Indo-Pacific Security Architecture: India is a key partner in the Quadrilateral Security Dialogue (Quad) alongside the US, Japan, and Australia, participating in the annual Malabar naval exercises to maintain an open and rules-based maritime order.
• Defense and Technology Transfers: The United States has designated India a Major Defense Partner, signing foundational defense pacts (LEMOA, COMCASA, BECA) and approving joint manufacturing deals (such as GE F414 jet engine co-production).
• Countering China’s Belt and Road Initiative (BRI): Western-backed connectivity plans—such as the India-Middle East-Europe Economic Corridor (IMEC) and the G7-led Partnership for Global Infrastructure and Investment (PGII)—provide alternative infrastructure models to Chinese state-backed loans.
• Balancing Hegemony in Global Governance: Western states support a permanent seat for India on the UN Security Council and supported India’s G20 Presidency in 2023, enhancing its diplomatic role across the Global South.

India’s Strategic Autonomy Approach

• While deepening partnerships with the West, India maintains strategic autonomy, preserving its independent foreign policy, engagement in groupings like BRICS and the SCO, and bilateral ties with Russia.

Western engagement with India reflects converging strategic and economic interests, working to build resilient supply chains and maintain a multipolar balance of power across the Indo-Pacific.