Global Supply ChainImage Credit Source: Signcast Photo
India’s dominance in global supply chain is increasing, foreign companies have also started turning to India except countries like China. There are many reasons behind the increasing investment of foreign companies in India, but the most important reason is the support from the government. Many supply chain leaders are discovering emerging global supply chain areas for diversification and India is emerging as a promising area for these leaders.
India’s role in global supply chain
According to an International Monetary Fund estimate, India will become the third largest economy in the world, leaving behind Germany and Japan with $ 5 trillion by 2027. Apart from the growth of a fast -educated workforce, the location from the Middle East, Europe and West Africa to Southeast Asia and East Asia is close to India, due to which India is becoming an ideal place to trade.
According to the India Review, India is emerging as a reliable alternative destination for manufacturers and diversification of manufacturers and supply chains due to its huge labor, consumer base, low operating cost and important international market. India remains an attractive place due to its strong economy, ease of trade and increasing number of open areas for foreign investment.
Government support to manufacturing sector
Companies like Foxconn, Fedex Fedex and many famous electronics, aerospace and medical devices are increasing their functioning in India and one of the reasons is probably support from the government. The National Electronics Policy (NPE) established in 2019 to establish India as a global center for electronics has supported the development of components such as graphics chips, semiconductor chips, motherboard chipsets and other computing devices.
Due to this, the electronics industry improved the competition globally. Subsequently, the production linked incentive (PLI) scheme has been brought for large-scale electronics manufacturing which has helped to boost domestic manufacturing, now 14 different industries are also benefiting from this scheme.
These industries played a role in the development of the country
India’s manufacturing sector has increased and diversified in the last few years, some industries have also played an important role in the economic development of the country. India’s aerospace, defense, medical device, automobile and electronics and space technology have played an important role in the development of the country. Apart from this, the manufacturing ecosystem of all of them is as dynamic, as much as dynamic (dynamic).
Make in India Program
In 2014, Prime Minister Narendra Modi started the Make in India program to strengthen India’s position globally. The objective of this program is to facilitate investment, promote innovation, promote skill development and build the best in class manufacturing infrastructure.
Why is the business sector towards India?
‘Why India is the next manufacturing hub’, information has been given in the webinar in which the incentives given by the government have been focused.
- Government of India: The panelists agree that both the central and state governments are making every effort to encourage the increase in the manufacturing sector.
- Investment in infrastructure: India is already investing heavily in the infrastructure, which is likely to increase further.