INDIA 2022: THE EPICENTRE OF SHIFT IN GLOBAL MANUFACTURING

India is known for its hospitality and diversity. This can be used to the country’s advantage to improve its attractiveness as a location feasible for foreign manufacturing unit set-up. The article elaborates on how India can monetise its local manufacturing prowess and significantly enhance its value proposition.

- Rajaram Pai

“Atithi Devo bhava” is an ancient saying in Indian culture that essentially encompasses our outlook towards our guests and the culture of hospitality in India. Foreigners visiting India have always vouched for our hospitality and welcoming nature. While this might sound like an interpersonal behavioral trait, this culture also bleeds into our businesses.

Due to its vibrant economy, infrastructure, and diverse talent pool, India can become the dominant driving force of the global manufacturing and production industry. With FDI equity inflow growing by 168 per cent in the first three months of FY’22, from $6.56 billion to $17.57 billion compared to the same corresponding period last year, we see India as a preferred destination, which is led by innovation, design and sustainability.

LOCAL MANUFACTURING PROWESS

With the ‘Make in India’ initiative, India is emerging as a hub for high-tech manufacturing as global giants like GE, Siemens, HTC, Toshiba, and Boeing have established or are launching manufacturing facilities in India. We have overtaken the United States as the second most desirable manufacturing destination in the world according to Cushman & Wakefield’s Global Occupational Risk Index 2021, reflecting the growing interest shown by manufacturers in India as the preferred manufacturing hub. A few factors contributing to the rise in ranking include the manufacturing resilience shown during the pandemic-induced lockdowns, cost competitiveness, and operating ecosystem that ensure that we are efficient and productive.