Until a couple of decades ago, India had only the Ambassador car to brag about its manufacturing capabilities. Today, it is ranked as the 4th largest automobile producer with a growth rate of 9.5% behind the US, China, and Japan. It is estimated that the country has sold over 4 million units in 2017 alone.

Flattering upward trends:

The World Economic Forum(WEF) has ranked India at the 30th position on the global manufacturing index. The country’s manufacturing sector has grown, on an average, by 7% per year in the past few decades. The impressive development from an era of wilderness to a path of success is marked by several factors.

Why India should your first consideration:

India has the potential to develop into a manufacturing powerhouse. Some of its strengths include

Plenty of talent:

There is a huge list of fresh talent joining each year to the large pool of engineers available in the country. Communication in English is not a hassle for them.

Low labor costs:

Labor costs have increased in China and India comes as an affordable alternative. Unlike in other countries, India follows a six-day working pattern and you get more working hours per week in the country.


India is politically stable and the economy is growing at a fast pace. political & financial stability, tax holidays for global investors, increase in the domestic consumption of manufactured goods.

Government initiatives:

Another positive note is the government’s move to transform the country’s manufacturing industry through the Make in India campaign. The purpose of the campaign is to make the country a manufacturing hub. The idea is to find all the solutions to issues like poor infrastructure quality, red-tapism while attracting foreign investments.

Benefits of manufacturing in India:

  1. Through campaigns like Make in India, the government has specified its priorities. The focus will be on manufacturing with considerable development and investment.
  2. Although there is still some regulations and government control, India adopts the commercial law system that is based on the British common law which is akin to the US legal system. People can easily adapt to and understand it.
  3. In addition to lower costs, there is plenty of labor in both skilled and unskilled workers. It is reported 12 million people enter the market each year.
  4. The manufacturing units in India use high-quality machinery, imported from leading countries like Japan. They show transparency in their products with no sacrifice in quality and durability.

The Make in India initiatives has been successful in attracting foreign investments. There are some noteworthy joint ventures that have been signed in different sectors that include:

  • Vistara – between Tata Sons and Singapore Airlines in the Aviation industry.
  • BrahMos Aerospace- India’s DRDO and Russia’s NOP Mashinostroyenia in Aerospace.
  • Bharati-AXA – Bharati enterprises and AXA from France in the insurance sector.
  • Mahindra Renault Ltd- Mahindra & Mahindra and Renault SA of France in the automobile industry.

There are several more and the list is likely to see many new additions. Finding a manufacturing partner in India can get an organization new markets while the country can benefit from world-class products.

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