Blogs

Leveraging Opportunities in India- Manufacturing

Published :Oct 2023

What makes India an attractive destination for manufacturing for international companies is, the growing domestic market and the large talent pool. Added to this, the ‘PLI Scheme’ introduced by the Indian Government which provide incentives for manufacturing in India is another. Thus, for international companies looking for an alternate destination for setting up manufacturing facility to cater to local as well as global demands, India becomes an attractive destination.

Growing Domestic Market

India is already the fourth largest economy and is continuing to grow rapidly with an annual GDP growth of 6% to 8%, making it the fastest growing economy in the world. A rapidly growing middle class and increasing disposable incomes create a strong domestic market for consumer durables. ​​Rising urbanization and industrialization drive demand for a wide range of products. There are also opportunities in large sectors like power, infrastructure, agriculture & horticulture, food processing etc for plant and equipment that cater to these core sectors and in areas like Data Centres, IoT, AI, Robotics etc which are seeing large scale adoption in the manufacturing as well as service sectors.

Management and Engineering personnel: Availability of Engineering and Management graduates from globally recognised Educational Institutes like Indian Institutes of Technology (IITs) and National Institutes of Technology (NITs) and Indian Institutes of Management (IIMs)- fresh out of these institutes and also with vast experience, having worked in Multinational and Indian companies, are a great attraction.

Technicians: The technical training institutes known as Industrial Training Institutes (ITIs) produces talented tradesmen in Mechanical, Electrical, Electronics and many other trades who are ready to be employed along with experienced technicians. Government supports the employment of these fresh technicians as Apprentices in industrial establishments by paying a part of their salary. With already established industrial base in most of the states, large pool of experienced technicians with such qualifications are also available around the country.

Supply Chain: With Large Indian and international companies already having large factories for manufacture of, Steel, automobiles, industrial equipment and machinery for sectors like power, infrastructure, food processing, pharmaceuticals etc, there is strong base of equipment and component manufacturers who can meet the exacting demands of global companies. These suppliers are normally located in ‘Industrial Estates’ in all the states and can cater to demands from industries located within the state or across the country and even outside the country.

Manufacturing Plants

In the industrial areas/ corridors in states like Maharashtra, Gujarat, Tamil Nadu, Uttar Pradesh, Madhya Pradesh, Andhra Pradesh etc, one can choose from;

• Built facilities with options to expand in future.
• Custom built facilities to suit the needs.
• Own Green field facility to be set up in Industrial areas

Opportunities open to all size and type of companies

Large, Medium, Small family run and even Micro enterprises can leverage the opportunity for manufacturing in India and take advantage of a ready domestic market for products and also to use the facility to cater to demand in the Asia region or around the globe. One can set up operations, with as low as 5 to 10 blue collar employees and ramp up over a period of time. All support functions like procurement, accounting & finance, HR, compliance etc can be outsourced.

Local Support

Many companies, who evaluate India for the obvious opportunities the country presents, finally stay away from getting in because they find the country “too complex”. But one should take support from experts on the ground in India to guide them to leverage the opportunities. Many small and medium sized family run companies have set up manufacturing facility in India and are being successful run for the last 10 to 15 years. Companies like CAMS Consulting, who are specialised in ‘India Entry’ can support international companies to set up their manufacturing base in India- starting with market study to setting up manufacturing operations and even help run it for a period pf time.

For more discussions on consultation on this topic, please connect with joseph.chaly@camsconsulting.in / www.camsconsulting.in