India Manufacturing Reimagined: Now & Beyond
2020 has catalysed the manufacturing growth story of India by creating significant opportunities for the nation to emerge as a global manufacturing hub.
The changing dynamics of manufacturing distribution supply chain, catalysed by the pandemic in 2020, has created a significant window of opportunity for India to emerge as global manufacturing hub. Further, Make in India 2.0 & Atmanirbhar Bharat (Self Reliant India) have added a double-engine nitro boost to the sector positioning India as a global manufacturing hub.
SCALE Committee, PLI Schemes etc. are a few such initiatives taken in 2020, that will further contribute towards making India, a major manufacturing hub of the region and globe. In the manufacturing space, India’s primary vision is to build manufacturing competitiveness through economies of scale, reducing imports, increasing exports and boosting domestic demand.
In India, demand for leased manufacturing spaces has gained strength in 2020, due to being a CapEx-light nation and high specifications clocking a gross absorption of 6.6 million sq. ft. in the top eight cities. Chennai, Pune and Delhi NCR take the pole positions followed by Ahmedabad, Bengaluru, Mumbai and Hyderabad in leased spaces, backed by strong manufacturing demand from sectors (including but not limited to) i.e. electronics & mobile manufacturing, electricals, white goods, packaging etc.
Also, in the ‘regionalisation’ battle to attract manufacturing investments, India stood out in 2020. A deeper look into announced greenfield manufacturing FDI projects in 2020, reveals that India leads the pack among MITI-V countries (Malaysia, India, Thailand, Indonesia and Vietnam) with the largest no. of projects announced as well as investments committed.
Curious to know how 2021 will mark the beginning of deeper penetration of manufacturing in India?