WEF Davos 2026: Why Cheap Labour Alone Won’t Attract Manufacturing Anymore

At WEF Davos 2026, experts highlighted how global manufacturing is entering a new era as trade rules, tariffs, and policy certainty undergo rapid change. For decades, companies chased scale and low-cost labour, but that model is no longer enough. Today, attracting foreign direct investment depends on quality, sustainability, clean energy access, and long-term national strategy. India’s “Make in India” push and Tamil Nadu’s focused manufacturing ecosystem were cited as strong examples of how planning across talent, infrastructure, and supplier networks can deliver results. The China comparison offers a key lesson: success comes from decade-long investments, digital infrastructure, and standardisation that helps small firms scale. For India, this shift presents a defining manufacturing opportunity.

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