INDIA AS A NEXT GLOBAL MANUFACTURING HUB
India is at the top level of growth phase that is likely to surpass projections.India's growth is commonly agreed,would be fuelled by internal demand.Investment in manufacturing will move towards countries with low costs,a good internal demand and lower competitive pressures.The BRIC nations have been refferred to as a bloc that will ride the next wave.
There are lot of advantages for INDIA as a next global manufacturing hub that are , BRAZIL is uncomfortable with forex inflows.its reluctance was evident in the imposition of a 2% transaction tax on capital flows.RUSSIA is a basket case and unless oil recovers to stunning heights,internal demand is unlikely to resurface any time soon, so it has only very little potential to attract firms to set up shop.Now CHINA is not considered as trusted partner;investors have learnt that China makes it easy to get in but difficult to operate,lack of protection of hard earned IPR is a major issue in china.In contrast INDIA has both a large internal market as well as the sopisticatiion and expertise to deal with DDD industries.Competition is organised and restricted to a few players in most industries.Funds are freely available .Hence ,profitable growth looks possible for any foreign investor to INDIA.
Within the next two year INDIA should witness growth in demand and hence capacity in manufacturing.India will have to devolop contract manufacturing skills within two or three years.It will help the growth of manufacturing sectors of automobiles and other sectors.Now India is concentrating more on infrastructure and devoloping new skill and technological sets. labourers with less wages are also freely available in India. Thats all are the reason all global firms are interested to build a manufacturing set up in India. INDIAN government welcomes FDI with less regulations.Like this the scenario is going INDIA would become the next global manufacturing hub.
There are lot of advantages for INDIA as a next global manufacturing hub that are , BRAZIL is uncomfortable with forex inflows.its reluctance was evident in the imposition of a 2% transaction tax on capital flows.RUSSIA is a basket case and unless oil recovers to stunning heights,internal demand is unlikely to resurface any time soon, so it has only very little potential to attract firms to set up shop.Now CHINA is not considered as trusted partner;investors have learnt that China makes it easy to get in but difficult to operate,lack of protection of hard earned IPR is a major issue in china.In contrast INDIA has both a large internal market as well as the sopisticatiion and expertise to deal with DDD industries.Competition is organised and restricted to a few players in most industries.Funds are freely available .Hence ,profitable growth looks possible for any foreign investor to INDIA.
Within the next two year INDIA should witness growth in demand and hence capacity in manufacturing.India will have to devolop contract manufacturing skills within two or three years.It will help the growth of manufacturing sectors of automobiles and other sectors.Now India is concentrating more on infrastructure and devoloping new skill and technological sets. labourers with less wages are also freely available in India. Thats all are the reason all global firms are interested to build a manufacturing set up in India. INDIAN government welcomes FDI with less regulations.Like this the scenario is going INDIA would become the next global manufacturing hub.
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