India is no longer just a big ‘market’. Now it is rapidly emerging as a global manufacturing hub. India’s importance has increased globally due to ‘Make in India’, PLI scheme and ‘Atmanirbhar Bharat‘ policies.
In the last few years, India has made its mark for global manufacturing. Long ago, products were made only for local consumption, but now India is becoming a center for high-value manufacturing, research and exports.
Ford has started making high-end engines in its Chennai plant. These engines will be sent all over the world but not to the US.
Now HP is going to manufacture all its laptops in India. In the next 3-5 years, all the PCs sold in India will be made here and in the future they will also be exported from India.
Due to the PLI scheme, large-scale electronics production has shifted to India.
South Korean company LG will now manufacture capital goods (heavy machinery) in India. It will also set up a Rs 1,000 crore R&D center in Noida, which will increase employment by 500 people.
Key reasons:
Clear industrial policies: ‘Make in India‘ and the PLI scheme have given a boost to companies.
Skilled manpower: India’s young and technical manpower is English-speaking and capable of manufacturing.
Changes in the global environment: With US-China tensions and the need for multiple supply chains, India is strategically located.
Conclusion: India is now becoming a hub of innovation, serving the global market, rather than just a cheap manufacturing hub.
Follow for more: MoneyIndices!
