India has successfully overtaken USA, to become the 2nd most sought destination
- INDIA has successfully overtaken “The United States of America (USA)” to become the second most sought destination for manufacturing globally. It is majorly driven by cost competitiveness, according to real estate consultant Cushman & Wakefield.
- The study was conducted among nearly 50 countries on the most advantageous locations for manufacturing. China has retained the top slot, and India has replaced the USA and become the 2nd most sought-after destination for manufacturing.
- India is strategically poised to become a global manufacturing destination because, after Covid-19, dynamics and world outlook towards China have undergone a significant shift. Parallelly, China is also moving towards high-end manufacturing such as automation and robotics. The report stressed that India could benefit from investment relocating from China and other countries in Asia, as India has firmly established itself in Pharma, Chemicals, and Engineering. These sectors are important and are cause for trouble between US-China trade challenges.
- Suppose India were to make it and sustain its position in Global Manufacturing. In that case, it needs to reform its land and labor laws which are outdated and creating hindrance for the country to become a favorite destination for manufacturing.
- The success of Govt. of India’s initiatives such as The “Make in India” or “Atma- Nirbhar Bharat” squarely depends on how the manufacturing sectors perform in coming years unless; there is robust manufacturing contribution in the country’s overall GDP, Maintenance, Repairs, and Operation within manufacturing, particularly spare parts, components & accessories, have enormous potential to play an essential role in the growth story of Indian manufacturing. The supply chain of machine spare parts can contribute significantly to streamline production in the manufacturing sector in India.
- The target of a 5 Trillion economy by 2024-25 is a long chase unless manufacturing in India lifts and achieves new heights of growth and opportunities.