Manufacturing Products in India
In the recent years, India has emerged as one of the most thriving economies on the planet. With more than 1 billion human resources and a wealth of natural resources, India has become an ideal center for manufacturing various products. Since the labor is available at very low wages, people from all around the globe are targeting India for manufacturing their products. This allows a great prospect for various businesses that seek to get their products manufactured in low cost, thus making huge ROI.
Owing to this very factor, India has come into the limelight in the world of trade and commerce. The entire world is looking to it and evaluating business prospects in India. Particularly in the product manufacturing sector, India has been able to capture and hold a distinctive position.
The unwavering GDP growth rate and sturdy FDI inflows are evident of the strong position of India in the arena of product manufacturing. Countless multi-national organizations are spreading their wings and looking to make India their hub of product manufacturing. According to the Senior Managing Director of Toyota Motor Corporation, “India is one of the most promising markets of the 21st century.”
It is noteworthy that India started paving its way towards building its economy ever since the commencement of the liberalization progression. Although the services industry of India has been its driving force, the product manufacturing sector has been making significant developments. Though slowly, but the product manufacturing in India is coming to the global scene and luring people to target India for business.
According to the general perception, the product manufacturing in India is going to take the country to new heights of development and expansion.
As India is one of the fastest growing economies on earth, it is pretty evident that product manufacturing sector will soon be at its pinnacle. In fact, India’s product manufacturing sector is already booming at a quick pace. Its average yearly rate is 6 percent every year amid 1990 and 2004. It is an astounding rate of development in the product manufacturing sectors as it is even higher than the 5.8 percent growth made by industry on the whole!
The product manufacturing sector has in fact a key role in perking up the overall industrial GDP of India. Not only this, this progression in the manufacturing has also helped to close gap among the GDP escalation rates of India and China.
This expansion has opened new vistas of economical development for India as now Indian products are gaining popularity in the global market as well. Do you know that India exports products of almost US$ 50 billion annually? Yes, this is right! This is escalating at the rate of 20 % per annum as well.
According to a study conducted by the Confederation of Indian Industry, it is estimated that product manufacturing sector (export market) in India can reach US$ 300 billion by 2015 at the rate of 17% per year!
It is believed that about US$ 70 billion to US$ 90 billion of this sum can be hooked from products such as garments, auto parts and chemicals. Electrical and electronic products also fall in this hot list. The reason for this fast development in the product manufacturing is the India’s proficiency in skill-intensive manufacturing sectors including textiles, auto parts etc. It is this very expertise of the Indian market which provides the country a winning edge over its competitors in the world market.
It is noteworthy that despite of the fact that low cost labor can also be acquired from other neighboring countries of India but it is the amalgamation of high technologies together with proficient workforce of the Indians which has given it a leading edge over other market players.
All these factors contribute to the thriving product manufacturing industry of India. It is opening new gateways for foreign investment and growth for India. Therefore product manufacturing in India has become a very enticing prospect for local as well as foreign investors. The innate strengths of India such as the natural resources etc. help to boost this sector even more.
In the world product manufacturing panorama, India has already established itself as one of the leaders in several product lines. India is already serving the global market with its product manufacturing in sectors such as engineering, and electronics. Some other products made by India for global market are textiles, chemicals and metals. It is also one of the top product manufacturers in leather goods and machine tools. Some other manufacturing sectors India is making its mark include food processing as well as gems and ornaments.
According to World Bank’s feedback, India has the most suitable climate for investment. Particularly if you are considering product manufacturing in India, there can be no better place to do it. This is because India has the ideal environment for investment in the product manufacturing sector other than the bundle of human and natural advantages it has to offer. Compared to other developing economies as well, India is quite ahead.
Do you know that India is the leading three wheeler market in the world? It is the second largest two wheeler market around the globe as well. If you are looking for product manufacturing such as gems and jewelry, be confident as India is the second leading world manufacturer in this domain. It is also the top most diamond cutting and polishing hub on earth. In the same way, India stands prominent in several other manufacturing sectors such as machine tools, chemicals, textile etc.
In the technological sectors as well, India is pretty famous for manufacturing of various electrical and electronic products. For IT related products as well, many multiple nationals are looking towards India to out source their product manufacturing to India. What more, giants such as CISCO is considering India for manufacturing its products! It is a great substantiation of the success of product manufacturing in India which has inspired global giants to invest millions of dollars for their product manufacturing here.
Be it communication products, pharmaceutical or textile goods, chemicals or jewelry, product manufacturing in India is without doubt emerging as the best gateway for the Indian and the foreign investors seeking to have promising ROI for their business.