In recent years, India has risen as a significant contender in the worldwide manufacturing arena, positioning itself to become the next global manufacturing hub. According to a report by Bloomberg, Apple is presently manufacturing 7% of its iPhones at the Foxconn plant in India as part of commercial production for the iPhone 15. Alongside global giants like Apple, domestic brands such as Hindalco, Noise, Skanda Aerospace, and many others are also setting up new manufacturing facilities, actively contributing to India’s manufacturing resurgence.
Expanding Exports and Diminishing Chinese Dominance
India’s journey towards becoming a manufacturing powerhouse is underscored by its impressive export growth. Over the past four years, India’s exports to the United States have surged by a remarkable 44%, while China has faced a 10% drop in its exports to the same market. This substantial shift is evident in various sectors:
Auto components exports have witnessed a staggering 65% increase.
Semiconductor shipments have soared by an impressive 143%.
Mechanical machinery exports have grown by a solid 70%.
Five Factors Driving India’s Manufacturing Surge
Several key factors are contributing to India’s ascension as the center of global manufacturing:
Cost-effectiveness: India’s imports are significantly cheaper (15%) than China’s imports (4%) for the US market, making it an attractive destination for manufacturing.
Trade Wars: Ongoing trade tensions have led to a 21% increase in tariffs on Chinese goods in the US, incentivizing global brands to diversify their manufacturing bases.
Geopolitical Tensions: Increasing geopolitical tensions have disrupted the smooth flow of trade with China, prompting companies to explore alternatives.
Supply Chain Resilience: The COVID-19 pandemic and other supply chain disruptions have highlighted the need for diversification and resilience, making India an appealing choice for manufacturers.
Abundance of Labor: India’s rapidly growing workforce supply, outpacing demand, presents a substantial advantage for labor-intensive manufacturing industries.
India’s trajectory towards becoming the world’s largest manufacturing hub is gaining momentum. The partnership between India and global brands aligns perfectly with the country’s ambitious manufacturing goals. With ongoing government initiatives and increased foreign investments, India is primed to redefine its role on the global manufacturing stage.
Read More: https://www.insightssuccess.in/indias-emerging-role-as-the-new-manufacturing-hub-of-the-world/
Source: https://www.insightssuccess.in/
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