III Spain-India Dialogue: "Towards Resilient Supply Chains in the Indo-Pacific: India as an Alternative for Spanish Companies"
Whit the interventions of Arancha González Laya, Alicia García Herrero, ICEX, Port de Barcelona, Airbus Defence & Space and Mahindra CIE Automotive
The third Spain-India Dialogue, titled "Towards Resilient Supply Chains in the Indo-Pacific: India as an Alternative for Spanish Companies," took place on May 25th. The event was organized by the Spain-India Observatory (ObEI) and was held at the Madrid headquarters of the Chamber of Commerce of Spain, a trustee of the Spain-India Council Foundation (SICF).
The event featured the participation of former Spanish Minister of Foreign Affairs, and current Dean of the School of International Affairs at Sciences Po in Paris, Arancha González Laya, and Alicia García-Herrero, Chief Economist for Asia-Pacific at Natixis. They provided a geopolitical and geoeconomic perspective on the creation of resilient supply chains in the Indo-Pacific region.
Following these interventions, a roundtable discussion addressed the challenges and opportunities that India presents as an alternative for companies seeking to relocate production in Asia. The panel included Eva Pulido, Head of the Logistics and Supply Chain Department at ICEX Spain Trade and Investment; Manuel Galán, Director of International Relations at Port of Barcelona; María Ángeles Martí Martínez, Director of Programs for Tanker, Transport, and Mission Aircraft at Airbus Defence & Space, and Alan D'Silva, Independent Advisor at Mahindra CIE Automotive.
During the Spain-India Dialogue, the participants analyzed how the coronavirus pandemic and the Russian invasion of Ukraine have exposed vulnerabilities and fragilities in global supply chains, leading to the reconfiguration of the international system.
In this period of change, Alicia García-Herrero stated that "India presents the greatest opportunity for Spanish companies," a sentiment supported by Arancha González Laya, who added that there are two reasons to strengthen relations between Spain/EU and India: "geopolitics drives us, and the economy offers us a tremendous opportunity."
To address the current international context, companies are prioritizing resilience over efficiency, leading to a shift from offshoring to nearshoring and friendshoring. In this reorganization of global value chains, India emerges as a suitable destination for the relocation of production in Asia due to its demographic dividend, skilled workforce, high growth rates and development in recent years, and ambitious commercial and investment agenda.
The economic centre of gravity shifting towards the Indo-Pacific and India's leadership in the reconfiguration of supply chains urge Spain and Spanish companies to pay greater attention to India. There is significant room for growth in trade and investment relations, as emphasized during the Dialogue, and increased participation and presence of Spain in this strategic region would present a great opportunity for Spanish companies, particularly for SMEs.
Some of the key reflections from the event included:
Inma Riera, Chamber of Commerce of Spain:
"We firmly believe in India."
"Spain must look more towards the Indo-Pacific, a strategic region."
"India is a key player in the current geopolitical moment."
"Bilateral relations are growing, (...) but there is still great potential."
Juan Ignacio Entrecanales, Spain-India Council Foundation:
"Supply chains have been a central element in all Dialogues organized by the Observatory."
"It is important to discuss supply chains in the current context."
Ambassador Dinesh Patnaik:
"India is the only country with the capacity to lead the restructuring of global supply chains."
"I want Spanish companies to go to India to take advantage of the enormous opportunities offered by its market."
Alicia García-Herrero, Natixis:
"India presents the greatest opportunity for Spanish companies in this changing world."
"India is an absolutely necessary market for Europe."
Arancha González Laya, Sciences Po:
"Spain and India have an enormous opportunity to solidify their economic and commercial relationship."
"There is a lot of room to grow [in economic and commercial relations]."
"India is making a huge effort to attract investments, and it is succeeding."
"There are two reasons to strengthen the Spain-India relationship: geopolitics drives us, and the economy offers us a tremendous opportunity."
Jaime Montalvo, Chamber of Commerce of Spain:
"The Indo-Pacific region captures our attention."
"India will play a central role as a political and economic actor."
Eva Pulido, ICEX:
"India's geostrategic position, democratic system, and skilled workforce make it an alternative for production relocation in Asia."
Manuel Galán, Port of Barcelona:
"Asia remains by far the main origin and destination of trade for the Port of Barcelona."
"India will play a key role in the restructuring of supply chains."
María Ángeles Martí, Airbus Defence & Space:
"For Airbus, the acquisition of 56 C-295 aircraft by India, with 40 of them to be manufactured in India, is a strategic project."
"The project will not only enhance the Airbus brand in India but also that of Tata and its supply chain."
Alan D'Silva, Mahindra CIE Automotive:
"CIE has experienced steady growth in India."
"We have invested in five new factories in the last three years."
