Traditionally, choosing a location for a manufacturing base has often been dependent on a single factor that improves the profitability of the operation. That factor could be availability of raw material, low overhead, suitable manpower, or proximity to a captive market. India is unique in that it offers a combination of all those factors.
The Indian economy has been open to overseas business for only about a decade. Given that India was closed to foreign industry for over 50 years, the new influx of businesses from abroad hasn’t been without a few manufacturing roadblocks, but overall the results have been outstanding. Many multinational corporations who’ve set up manufacturing operations in India have banked serious profits and are looking at different avenues of investment and expansion.
In this section, I clue you in on some of the details that make India such an attractive choice for manufacturing and also offer a look at some of the potential challenges.
India’s industrial base is both large and diverse, and it offers many advantages. The Indian population is the most important factor in its manufacturing potential. But there are other positives to consider, too. The country is rich not only in people but also in raw materials, which are critical to the foundation of a strong manufacturing base.