A Conducive Ecosystem to Long Term Growth

While China has become Asia's manufacturing hub in the last decade, India's growth has been focused on the services sector. According to Cushman & Wakefield's 2021 Global Manufacturing Risk Index, India has emerged as the second most sought after manufacturing destination across the world indicating the growing interest shown by manufacturers in India as a preferred manufacturing hub over other countries, including the U.S and those in the Asia-Pacific region.

The rising focus on India can be attributed to India's operating conditions and cost competitiveness. Also, the country's proven success in meeting outsourcing requirements has led to the increase in the ranking year on year. Last year, India and the US switched places--second and third---taking India one rank above from the rankings released last year, when India stood at the third place. From an agricultural economy to a services economy, India has shown significant transition. The Government's `Make in India' campaign is designed to attract foreign direct investment and provides a running report of positive change in the sector. India's manufacturing sector is backed by strong technical and engineering capabilities and a high degree of expertise. However, the average skill level of the labour force is arguably lower than in some neighboring countries. This can be a positive for small-to-medium enterprises, as a lower-skilled workforce can mean lower manufacturing costs, especially when considering the recent sharp increase in China's minimum wage.

the PLI scheme has come as a redeemer for the manufacturing sector. More companies than ever are actively investing in scaling up their production, be it pharma, iron & steel, or infrastructural domain players. Besides, The concessional tax regime for new manufacturing companies mandated commencement of commercial production by 31 March 2023. Asia Business Outlook has picked the moment to admire those efforts and present you this special edition featuring the best of the bests in the country's proactively growing manufacturing segment.