Modi’s fast-growing India ‘pulling out all the stops’ to edge out China as supply chain leader

Gautam Nair is preparing to ramp up production at his clothing factory in Gurugram, betting on a surge of orders from brands like Marks & Spencer and Next as India pursues more free trade pacts with the rest of the world.

Within three years, he expects Matrix Clothing’s exports to the European Union (EU) and the UK to more than double from current levels. “The industry is very excited,” Nair, who co-founded the company, said by phone.

Prime Minister Narendra Modi’s government is taking advantage of India’s growing appeal as the world’s fastest-growing major economy and an alternative to China for global supply chains to clinch a number of free trade pacts. India expects its deals with countries from the UK to Australia will help boost its manufacturing and soak up the tens of millions of young people entering the workforce in the years ahead.

The latest, and among the most ambitious, was a trade and investment pact signed with four European countries, including Switzerland and Norway, on March 10. It signalled India’s readiness to take on commitments in areas such as labour, environment and sustainability and gender – topics it had shied away from in the past. It was also the first time India secured an investment commitment – of US$100 billion over 15 years – in such a deal.