Can India replace China as world’s manufacturing hub?
The question is often asked, but seldom answered. The reason: there is no good answer; no one knows if this is possible in the near future. There is a wishful thinking and a hope, but no clear proof so far.
China has established itself as a dominant force in the manufacturing arena. Chinese have experience, which is hard to replace or reproduce. They have infrastructure specifically designed for outsourced manufacturing and they have no shortage of labor. As a result, ‘Made in China’ is a world force to reckon with.
However, China may be reaching its capacity in manufacturing labor. The wages are going up, the labor market is becoming more demanding. There are only so many workers you can hire at the rock bottom wages.
Necessity is the mother of invention, they say. The western companies need to find an alternate to China; they need a back-up plan at the very least. That’s why more and more companies are looking towards Indonesia, Vietnam, and oh yes…India.
India is world’s second most populated country; no shortage of worker here. hence the question: Can India replace China as a manufacturing hub for the western companies? If you ask anyone including the Indian Government, the answer is Yes, with an ‘*’. Anything is possible, as they say and India has the size to stand against China. So what is the problem? Why India has not made much progress in this area?
Well, there are many ‘problems’, not just one. Continue reading “Why not ‘Made in India’?”