What are the advantages of manufacturing in India?
Global giants such as GE, Siemens, HTC, Toshiba, and Boeing have chosen to manufacture in India. If you’re wondering why, here is a brief overview of the advantages of taking your manufacturing needs to India:
Ease of communication — English is a national language of India, so it can be much easier to communicate your needs and negotiate terms there than elsewhere in Asia.
Business friendly government — Under the Make in India program, the government has instituted many reforms to make it easier for businesses to get up and running. Efforts have been made to simplify and rationalize the regulatory environment. Less red tape means there’s more competition for your business. This leads to better terms and higher quality.
New and growing infrastructure — The national government and each state in India has committed to building industrial zones with new and rebuilt infrastructure to accommodate industry. This includes sector specific clusters of industrial parks for electronics, automotive and textile manufacturing, as well as other industries.
Skilled workforce — India has a relatively young and educated workforce. Indian talent includes individuals with strong technical and engineering capabilities, as well as labor capable of performing precision tasks. The government is committed to skill development to encourage workforce mobility and enhance youth employability.
Low labor costs — The average daily cost of a factory worker in India is less than 20 percent of the daily wage in China, and significantly less than the daily wage in Indonesia, Vietnam, the Philippines and Mexico.
Abundant materials — Although India imports much of its raw materials from China, it also boasts abundant domestic production of materials ranging from cotton to steel.
Stability — With more than one billion consumers and a burgeoning middle class, India’s domestic economy is stable, and the government generally has the support of the people.
Transportation —India is closer to many Western markets than China and other Far Eastern nations, so delivery can be accomplished in less time and often at a lower cost.
All these elements make India a great source for quality products at a low cost.