As the sixth largest economy and second most populous nation in the world, India offers a unique combination of an expansive consumer market and a large pool of skilled labor. Paired with favorable investments from the Indian government, the South Asian powerhouse is set to become a leader among global manufacturers.
By outsourcing production and manufacturing to the Indian market, businesses can cut costs, increase output, and establish themselves in what will soon become the largest market in human history. The benefits speak for themselves and can be summed up as the following.
Competitive Advantage Over Western Labor Markets
Currently, the average manufacturing wage in India is a fraction of the cost of labor in developed nations such as the United States, Germany, and Japan. In fact, the average hourly wage for a factory worker in India is around $1.29, compared to $16.23 in the U.S.
This gives Indian manufacturers a significant competitive advantage when it comes to pricing their products. This advantage is only expected to grow as the Indian economy continues to develop and more workers enter the labor force. By 2023, the country is expected to have the largest workforce in the world, making it an even more attractive destination for businesses looking to cut labor costs.
Support for Manufacturing from Investors and the Indian Government
India has already established itself as a nuclear power and a regional leader in space exploration. Thanks to its competitive education system, an influx of billions of investment dollars from both private and public institutions is contributing to a massive expansion in medical, drone, and automotive manufacturing. When matched with an already extensive service sector, India’s economy is on track to become highly diversified and robust.
Ease of Communication
Although India is a land of more than 100 languages, it’s also home to the second largest English-speaking population in the world. This makes it an ideal market to establish relations with easy communication and understanding. Many businesses within the telecommunications sector have already tapped into this potential with many more hoping to benefit.
The Bottom Line
The advantages of manufacturing in India are clear. With a large consumer market, growing skilled labor force, support from investors and the government, and ease of communication, India is poised to become a leading destination for manufacturers in the years to come.
For all your manufacturing needs in India, schedule an appointment with our experts or send a mail to help@gtdinindia.com
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