India has the poise, resources, and capability to rival the China export engine. As supply chains have shifted, the India contract manufacturing industry has gained momentum. Huge swaths of land have been cleared for the continued development of commercial manufacturing space. Government packages and strong economic incentives have made India a favorable destination for supply chain leaders.

Core Industries: Petro, gas, oil, fertilizer, cement, steel, and electrical.

Three benefits of manufacturing in India

1. Accommodating government and legal systems
The Indian government is allocating significant attention and investment to the manufacturing sector. The country has been hungry to become a global manufacturing super power for several years now ever since the government implemented the “Make In India” initiative in 2014 – the goal of which is to significantly increase the manufacturing sector’s growth rate and create 100 million additional manufacturing jobs in the economy by 2022. Furthermore, the commercial legal system in India is fairly similar to that of the United States which makes it easier to navigate than other countries, especially China.

2. Low labor costs
India offers lower labor costs than almost any other major manufacturing destination with contract workers in India earning approximately $148 USD per month as compared to $234 USD in China.

3. Strong engineering and technical skills of workers
India also boasts a workforce filled with highly skilled workers, a large portion of which are also proficient in English. This leads to a simplified manufacturing process where on-the-ground engineers and workers can easily communicate with a company’s supply chain management team to establish a foundational design for manufacturing and avoid critical production mistakes.

Our team has compiled more information on India’s programs & policies to inform you of what you need to know when outsourcing manufacturing and the economic incentives offered by India.

Southeast Asia Manufacturing Alternatives Handbook

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