ATMANIRBHAR –will it make India the alternate manufacturing hub?

business news, latest business news, economy news, indian economy News, share market news, breaking business news, Sensex updates, bse, nse, stock exchange news, stocks news, banking sector news, news on economy, news on top companies India power consumption, India power consumption 2021, India power consumption february 2021, India power peak demand, India power peak demand 2021, India power peak demand february 2021, India power consumption rises in february 2021 economy news, economy news india, politics news, indian economy, indian economy news, economy news today, latest economy news, politics news, politics news headlines, business news analysis, corporate business report, indian economy analysis, business eco share market news, share market news today, share market news live, share market today, share market prediction, share market news in india, share market news latest, indian stock market, markets news, Bombay stock exchange, BSE, NSE, best performing stocks Latest Business News, IPO News, Business News, Sensex News, Economy News, Today’s Business News, Stock Market News technology news, technology news india, latest technology news, tech news, tech news india, gadget news, smartphone news, mobile launch news, smartphone launch news, latest gadget news, tech news on mobile launch Corporate houses, big corporate houses, Q1 results, Q2 results, Quarterly results, Corporate policies, business policies, business houses, business, business news Business News, Finance News, India News, BSE/NSE News, Stock Markets News, Sensex NIFTY, Latest Breaking News Headlines market news, market live stock market, rates, stock share value, markets stocks, broker research reports, investment, ipo analysis, Indian Stock/Share Market Live, latest business news, latest business news in india, latest business news today, latest business news headlines, latest business news in tamilnadu, latest business news in tamil, latest business news in india today, latest business news app, latest business news international, latest business news around the world, latest business news articles, latest business news all hindi news paper, latest business news australia, latest business news america, latest business news aston martin, latest business news africa, latest business news bbc, latest business news business standard, latest business news cnbc, latest business news canada, latest business news covid 19, latest business news china, latest business news cnn, www.latest business, latest business news dubai, latest business development news, latest news business day, latest news business daily, latest business news malayalam dhanam, latest business news in denmark, debenhams latest business news, latest business news economic times, latest business news europe, latest business news ethiopia, latest business news english, current business news events, latest business environment news, latest business ethics news, current business ethics news, latest business news for quiz, latest business news from india, latest business news for presentation, latest business news forbes, latest business news from around the world, latest business news headlines for today, latest business and finance news, latest news for business
Business News Today | Live Business News | Business News

As per a recent ToI report, a contract manufacturer for tech giant Apple is shifting six production lines to India. The vendor is also looking to export around $5 billion worth of iPhones from India. The relocation from China is an effort to derisk manufacturing bases by diversifying supply chains. Aug 2, 2020

Around 200 US companies looking to shift manufacturing base from China to India, says USISPF

Japan has announced an initiative to set up a fund of $2.2 billion to encourage companies to move out of China with no compulsion to come to Japan.

What does these 3 instances herald for the Indian manufacturing sector?

The Chinese production powerhouse model thrived on specialised supply chains clusters making production quicker, less expensive and more efficient.

Today India has much larger workforce than other asian nations. ( Vietnam, with less than one-tenth  100-million population is small compared to China’s 1.3 billion).

We have global standard industrial clustered production centres like Coimbatore, bangalore,Chennai,gurgoan,delhi, pune,Hyderabad. The product ranges from pumps, castings, machining,automobile components, high tech engineering and bulk drugs. Our value engineering combine with advanced logistics for local or export markets at competitive costs. Compared to china.

While for most companies, an immediate full relocation outside china may not be feasible. But the China +1 strategy seems to be a practical solution as a solution to derisk manufacturing at a single location,  stave off US tarrifs  for the American, Japanese and European markets. Now, as operations are relocated and become more fragmented, they are threatening to raise costs, stretch delivery times and expose them to a unpredictable supply chain.

As a result, a new global manufacturing landscape is starting to take shape. India offers automation as another advantage for high value additive manufacturing like defence and energy which need highly skilled technical workforce to match. Unlike Vietnam, India offers skilled, productive workforce that can add high value, not mere packing and shipment. Also the electronics components can come from Japan and Taiwan. Our established large reputed foundries and automated manufacturing facilities already meet global certified quality-controls. So bigger parts for customised plant and equipment can be deleivered on the back of our technological and design capabilities.

Logistics is the new game changer here. Whether it’s to bring in raw materials or export a finished product. India’s logistics infra and 3PL ecosystem is world standard. The improved transport corridors  network of roads offer competitive advantages for quick transit between the factory and the pier. The investments in railway, highways, ports and airports development is now paying off to help grow India’s manufacturing economy. In fact, it’s expected to cut back transportation time and costs by 20%. In 2016, China ranked 27th worldwide, compared to India at 35th.

But India needs to move extremely fast on its regulatory framework and ease of doing business. An area where skeptism still exists. China has real resons to keep india occupied on its northern borders. Fortunately the majority of nations favour india,have suffered through an economic disaster due to sly and irresponsible china’s wuhan virus.


Please enter your comment!
Please enter your name here