Make in India
Will India realize its potential as the next manufacturing hub as China has in recent times? With its vast population, land mass and diverse manufacturing industries ranging from textiles to machinery and aerospace, it would seem well-positioned to do so.
Recent times have seen a maturing of China’s manufacturing industry. At the same time we see costs rising
, as China seeks to raise the living standards of its own labor force and create a source of consumer demand within its borders. Meanwhile India is fast becoming the next logical consideration for businesses looking to procure quality cost-effective inputs and finished products.
Prime Minister Narendra Modi has launched many initiatives with the primary goal of making India a manufacturing hub. The focus is on streamlining processes, supporting particular sectors and building infrastructure and mindsets. So what have we seen recently to give importers confidence to consider India as a procurement option?
- Make in India: A 2014 Initiative to encourage manufacturing
- GST: The refund process has been fast-tracked for refund of duties and taxes to exporters. Boosting job creation and making Indian exporters more competitive, GST was implemented in July 2017
- Port and river channel modernization: The SAGAR Mala Project was approved in July 2016
- Road infrastructure: A 'National Highway Grid’ is to be created connecting 12 major ports, 26 capitals, 45 other cities and estimated to be 36,000 km long, thus reducing inland transit times and logistical costs.
- Rail infrastructure: Inland Container Depots (ICDs) across India to be connected to ports by rail to reduce transit times and reduction of missed sailings.
The question for most importers is: How do you take advantage of the opportunities India presents as well as overcome the inherent challenges? A key answer to this is to find a trustworthy partner with relevant expertise.
- Finding and procuring reliable and reputable suppliers
- Understanding the domestic market
- Improving inland transit times
- Developing relationships with trusted partners
- Acquiring local expertise
As it was with China, having a partner that can help identify, qualify and make introductions to the right suppliers is critical when evaluating your product procurement options. ITM has been working with India’s leading independent full service international logistics provider for close to 20 years. With national coverage, 13 offices, warehouses, 300+ employees, a national road fleet and the expertise to make the difference, we are well placed to meet your needs.
Speak to your ITM representative today to find out how we can help you gain maximum leverage from your opportunities in India.