India’s Strategic Factory Relocation plan for Europe’s energy crisis
This is a sequel to my recent article in PGurus titled, “Europe’s Deadly Embrace Vs India’s Strategic Autonomy“.[1]
A new reality is emerging: Factories in Europe, especially many MSMEs in Germany and Italy, are facing energy costs that are drowning them.
These long-standing companies are being squeezed: they are forced to meet strict ‘green‘ targets before the technology is even ready.
While the cheap Russian gas that kept these plants running is gone for good, their very survival is now difficult. Their old ally, the US, is also using huge subsidies to lure them.
It’s a tough spot to be in, but we don’t need a philosophical debate to fix it.
If you’re a business owner, you just want to keep your machines running, your workers paid, and you survive with decent profits.
India can offer a simple, down-to-earth proposal to such European companies, along the following lines.
Shift your factory to India temporarily, shift back later
The most practical solution is a temporary relocation.
If the cost of running your plant in Europe today is making you bleed money, don’t shift to costlier countries that may gobble you up, nor, worse still, wind up.
- Temporary shelter: Shift your plant and machinery to India now. We have the space, a fairly stable energy grid, and workers ready to go.
- The ‘Return’ clause: You keep 100% ownership. Think of India as a safe location where your machines actually stay productive, cost-effectively too. In a few years, iof and when the situation in Europe stabilizes and energy costs normalize, you have the option to shift your machinery back home. You don’t lose your business; you just move the ‘factory’ for a while, still keeping them running.
We aren’t looking to ‘take over’ your industry. We’re suggesting a mere strategic factory relocation.
The Twin-Plant option
If you don’t want to move your plant, consider the Twin-Plant option.
Keep your headquarters and a ‘high-tech’ assembly line in Europe, but move the energy-heavy parts of your production to a twin facility in India.
This way, you have the flexibility of operations on an ongoing basis.
You have two engines instead of one.
Think of it as a common-sense insurance policy.
Work permit visa for your core team
We know it won’t make sense to ship machines without the people who know how to run them.
India can fast-track work permits under its existing business and employment visa frameworks, specifically for these core engineers and managers.
They can come to India, set up the plant, oversee the quality, and stay as long as the project requires. Your expertise stays with your machines.
All the options in one room
India is a diverse country, almost like the EU, and every state offers something different. We will hold ‘Industrial Choice‘ summits in major EU industrial cities.
Imagine a hall where officials from across India, from the car-making hubs of Tamil Nadu to the chemical zones of Gujarat, are all in one place.
You can sit down, compare their suitability and costs (power, workforce, logistics, etc), and make a decision in one go.
No flying around, no red tape, just a clear comparison of costs vs benefits.
Why this is a win-win
For the European manufacturer, this is about business survival. It stops the bleeding and keeps the brand and business alive.
For India, we get the world’s best industries and a chance to show we are a reliable partner.
We are one of the most politically stable countries in the world.
We already showed we can look after our own national interest during the energy crisis by keeping our prices stable.
Now, we’re inviting you to share in that stability.
The bottom line
We don’t need to be tied together like a mouse and a frog in the old Indian fable, drowning because one of us had to dive.
We should be like 2 good friends with two workshops. If the power goes out in your shop, you bring your tools over to mine and keep working until the lights come back on at your place.
Let’s stop the long meetings and start making the right moves. India has the room. You have the skill. Let’s build a bridge that actually works.
Once in a lifetime opportunity
The opportunity is huge, but it’s once in a lifetime, like Y2K was, and won’t last long.
European companies are in distress. Before long, they may have shifted out elsewhere or closed down.
India is not in their pecking order of priorities. We need to sell the idea. But it’s not easy.
We need to act fast.
Even if we get 10% of the companies in distress, it will be a huge opportunity for employment, learning, capacity building, and government revenues.
The proposed policy at a glance
- Asset security: You own your machinery; shift them back whenever you’re ready.
- Energy stability: Use India’s steady, lower-cost energy to keep production viable.
- Low labour costs: Not only is there an educated labour force aplenty, but it is cheap too.
- The work permit visa: Move your core European team with you with no delay.
- Twin-plant option: Maintain a presence in both continents to spread your risk.
- Market access bonus: Sell to a 1.4 Bn market while your factory is on Indian soil.
Note:
1. Text in Blue points to additional data on the topic.
2. The views expressed here are those of the author and do not necessarily represent or reflect the views of PGurus.
Reference: –
[1] Europe’s deadly embrace vs India’s strategic autonomy – Jan 10, 2026, PGurus.com
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- How an Indian proposal can help Europe’s factories to survive - January 11, 2026
- Europe’s deadly embrace vs India’s strategic autonomy - January 10, 2026
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