India is firmly taking control as the future hub as several manufacturing companies across the globe are shifting their base. The surprising and interesting fact is this includes the manufacturing units from China and Hong Kong too.

Move over China

The enormous propaganda of Make in India by the government has attracted the attention of several manufacturing companies’ world over. India is the preferred destination today. China is no longer a feasible manufacturing hub. Low-cost manufacturing is the key requirement and the costs in China have risen. That country has moved to high-tech manufacturing.

Increase in costs:

The transition of China has created plenty of space for the other nations like Malaysia, India, Indonesia, Vietnam, Thailand etc. The rising labor costs and electricity shortage has compelled many Chinese companies to raise their prices. This was disturbing the calculations of the importers and they began to look elsewhere. The industrial world is looking towards India as the most appropriate choice among all.

What is the India advantage?

Political stability in India and the government’s initiatives of making India the international manufacturing hub, continued economic growth, cheap labor, and the huge population are a few factors that play a crucial role in attracting the foreign investors.

Huge talent:

India has a diversified culture and there is plenty of fresh talent being added to the engineers and graduates. Design engineers, supervisors, accountants etc are needed in plenty in every manufacturing industry. Language is not a barrier. English is understood and spoken in the country.

Government’s will:

The “Make in India” campaign has taken off successfully and showed its results within a year by overtaking China in receiving more direct investments worldwide. The other initiatives that have successfully started in the country include Smart cities, Start-Up India, Digital India etc.


The competitive labor costs are one big advantage in India’s favor that will continue to lure more foreign investments. This is not the case with the other nations. Most of the states in the country have built industrial parks enabling private investors to set up their production plants. It has become possible for the country to provide the necessary infrastructure and other amenities although there is still a long way to go.


There is a vast improvement in the logistics industry in the nation. Highway roads, air transport, and sea freight facilities are improving.

There are still challenges that need to be overcome before the manufacturing in India can assert itself as a permanent solution. Infrastructure quality, slow clearances of projects which are being addressed by the government.

The encouraging news:

Joining hands with a manufacturing partner in India can be a big benefit for the manufacturers. Havells fans have shifted from China to India and set up its factory close to Haridwar a few years ago. Tech Mahindra has signed an IT pact with a UK University. Ericsson has launched an Innovative lab in Delhi for 5G.

Many US companies are showing interest and taking steps to set up production units in fields like Food & Beverages, Education, Healthcare, Infrastructure, and many home-based products.

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