We’ve learned a lot during this pandemic. Global supply chains were significantly disrupted during these times, causing companies to rethink their global supply chain strategies. Companies like Jaguar and Land Rover were affected from their UK to Chinese markets and had to rethink how they global sourced. Even companies like Samsung, who had moved production to Vietnam, were feeling the effects.

Now more than ever, companies need to rethink how they do business and where they source their production means. With tariffs rising in China, the country has no longer become the best place to manufacture.

Companies have moved on to different countries such as Vietnam. Who is developing infrastructure to keep up with growing interest but is struggling to build adequate transportation infrastructure with congested roads and ports.

So, where should a company manufacture? China and Vietnam are not the only options for a thriving business. India is a cost-competitive alternative in the manufacturing market.

Why India

Low labor costs are the most crucial reason for global sourcing. Manufacturers overseas offer their services at a highly competitive price, and this is especially true in India.

Taking aside lower labor costs, there are plenty of other reasons to manufacture in India. Some examples include:

  • Access to technology and hardware
  • Access to research tools, design expertise, and skilled labor
  • Sourcing raw materials
  • Manufacturing efficiency that is hard to find
  • Efficient quality control
  • Sourcing potential strategic partners and business talent

India demographics

India produces the highest number of engineers in the world. You can be assured that the overseas partners you engage with will are educated in the most up-to-date working processes and labor practices. Indian engineers are known to have strong expertise in operating the most modern mechanical equipment in the world. Also, communication is easy with India as most of India’s engineers are bilingual, English being one of the most prominent languages.

An automotive boom in India

India became the fifth-largest vehicle retail seller in 2019, with sales reaching 3.81 million units, which means that India has expertise in producing automotive parts. According to the Department for Promotion of Industry and Internal Trade (DPIIT), the industry has received a foreign direct investment (FDI) credit of $24.21 billion between April 2020 and March 2020.

Casting in India

The automobile industry accounts for 40% of all casting produced in India. While casting formation reached 11 Mn tonnes in 2018 and has a planned increase of approximately 12.7% from 2018 until 2023. Indian manufacturers are experienced in castings and work with a variety of materials. As of 2018, aluminum castings comprised 15% of total casting in the country.

CNC Machining in India

CNC machining is a subtractive process that utilizes computerized controls and machine tools that remove layers of material from a stock piece. CNC machining is a popular process in India that is cost-competitive. The market size is expected to grow by 1.9 billion from 2019-2024 at 13% CAGR.


The combination of a skilled labor force, ease of communication, and India’s experience in different types of manufacturing make it a fantastic resource for global sourcing. However, the logistics of working with overseas partners can be overwhelming and tiresome. It’s best to partner with a global sourcing expert like Aerostar. We have trusted suppliers and the expertise to manufacture your part at the best price and highest quality.

Have a part and ready to take the next step? Submit a quote today. https://www.aerostarmfg.com/request-quote/