Why India is a Strategic Hub for Global Manufacturing


The world of consumer electronics is fast-paced and ever-evolving. As such, businesses must embrace diversification and adaptability to sustain growth and maintain competitiveness. As the global economic landscape undergoes transformation, India has emerged as a compelling destination for manufacturers of all sizes.

This article will explore why global businesses should consider India as their manufacturing hub and cover some of the strategic advantages it offers in an era of economic shifts and geopolitical complexities.

Robust Infrastructure and Strategic Location

India’s economic growth has spurred significant investments in infrastructure, meaning that the nation now boasts an extensive network of ports, highways, and railways, facilitating seamless logistics.

Strategically located between the Middle East and Southeast Asia, it ensures convenient exports and provides access to an expansive and relatively untapped consumer base.

A Skilled and English-Speaking Workforce

With a robust education system emphasizing engineering and technology, India annually produces millions of highly qualified professionals. Moreover, the widespread use of English simplifies communication, further enhancing India’s attractiveness to global manufacturers.

Cost Competitiveness & Risk Diversification

While labor costs are rising globally, India offers a high-quality, cost-effective alternative. Additionally, access to locally sourced raw materials enables businesses to maintain a competitive edge by optimizing operational costs — a crucial factor in today’s competitive manufacturing industry.

History has taught us that overreliance on a single manufacturing location can be perilous, often exposing businesses to significant risks, including geopolitical tensions, trade disputes, etc.

Recognising this vulnerability, many global corporations such as Samsung and Apple have now identified India as a strategic secondary base. Diversifying your manufacturing base affords your business a more resilient and stable supply chain, ensuring uninterrupted operations even in challenging times.

A Global Intellectual Property Rights Framework

Intellectual property protection is one of the major concerns that has emerged following the advent of globalization. As such, India has established a robust legal framework aligned with Trade-Related Aspects of Intellectual Property Rights (TRIPS) to combat this.

This framework safeguards intellectual property rights, including patents, trademarks, copyrights, and trade secrets.

India: The Land of Opportunities

In an era where adaptability and strategic thinking are paramount for businesses, India presents many opportunities for global companies seeking to expand their footprint.

As the global economic order continues to evolve, embracing India, its thriving ecosystem, and its dynamic and burgeoning market can yield many strategic and financial advantages. For those considering a “China+1” strategy, India represents a critical pivot to ensure resilience and growth but also positions companies to thrive in an era of rapid change and uncertainty.

Interested in learning more about diversifying and growing your manufacturing business? Speak with Pallav for more information on why India could be the ideal destination for your manufacturing expansion.

About the Author

Pallav Narang is a New Delhi-based partner for tax and advisory services with CNK. As a member of the Association of International Accountants and Auditors (INAA), Pallav is united with INAA on its mission to help professional accounting firms deliver the best-in-class services worldwide.

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