As India aims to become a top manufacturing hub, Indian is on the threshold of major reform. India is poised to rank among the tip three manufacturing locations by 2020. In light of India’s launch of the Make in India initiative (MIII) aimed at transforming the country into a global manufacturing hub. India is a vast country in South Asia in terms of population and geographical area – the second most populated country, after China, with an area about one-Third that of China. However, it’s per-capita income is about one-fifth of China’s, ensuring a good supply of low-cost labor for it’s manufacturing sector over the medium to long term. Labor supply know India is abundant in major manufacturing states. A booming Indian economy has helped create a strong demand for labor, with growing job opportunities in first – and second tier Indian cities including persistent rural-to-urban and inter-state migration. In India, lots of manufacturing occurs in the informal sector, which typically covers cottage household and village industries in areas such as handlooms, handcrafts and agriculture. In compassion, manufacturing in a factory setting and employing more than 10 people pertains to the organized employment sector, which I’d governed by the minimum wage law. Minimum wage standards in India are complex.
During the past decade, the Indian economy focused on services rather than manufacturing India is focusing on the development of its infrastructure, increasing and/or tailoring it’s talent pool to the needs of the manufacturing industry, attacking investment through aggressive foreign direct investment initiatived and increasing the ease of doing business through legal and tax reform.
Below is a brief description of the major manufacturing hubs in India. Although all of the areas discussed below need significant infrastructure, including roads, rail, airports I and power and water improvements, most are already attracting significant investment, which will increase their manufacturing power and capacity.
Greater Noida (Uttar Pradesh) is India’s best auto manufacturing hub. It’s location and Connectivity, on the outskirts of New Delhi and consistent supply of resources have attracted big international companies such as Yamaha, Honda Del cars and LG Electronics India.
Nashik (Mumbai) located approximately three (driving) hours northeast of Mumbai, has electrical engineering and auto components industries. This location is well connected to two roads and airstrips but no airport.
Manesar, Haryana (Chandigarh) located about an hour (driving) southwest of New Delhi, is another favoured auto manufacturing hub. It is well connected to roads and railway. Infrastructure reform us underway to increase it’s manufacturing power and capacity.
Hospet (Bangalore) located in South central India approximately five hrs north of Bangalore, is a major steel and iron manufacturing hub. Hospet has recently attracted huge investment that will continue to grow it’s manufacturing power and capacity. Apple recently announced it’s descision to set up a manufacturing plant in Banglore.
The Make in India campaign means the Indian government is putting a high priority and lots of attention on the manufacturing industry, including significant investment and development. This will make an India an even more attractive manufacturing choice. The Indian commercial law system is based on British common law, which is most similar to the US legal system. Although there are some regulatory hurdles, a similar system makes it easier to understand for people from other common law countries. Manufacturing labor is very cheap in India, even compared to China. In 2014 the average cost of manufacturing labor per hour was $92 in India and $3.52 in China. While this cost seems much lower, you have to take into account the extra costs you will incur due to India’s significantly worse and more expensive transportation, power and water costs. India has a huge labour force (nearly 500 million people), which included unskilled workers as well as researchers and engineers, capable of lending cost-effective research and development support to manufacturing operations.
Chosing where to manufacture is an important business decision that requires significant research and consideration.
Eduindex News 