HomeIndian EconomyBig boost! India winning global manufacturing battle as supply chains shift away...

Big boost! India winning global manufacturing battle as supply chains shift away from China, reveals study

Source : The Times of India

Big boost! India winning global manufacturing battle as supply chains shift away from China, reveals study

Big boost! India winning global manufacturing battle as supply chains shift away from China, reveals study

India’s manufacturing success in the global arena over the past five years has been notable and it has emerged as a winner, as per a study by BCG, quoted in an ET report. During this period, Indian exports to the US surged by $23 billion, marking a 44% increase from 2018 to 2022. In contrast, China experienced a 10% drop in its exports to the US.

The study, titled ‘Harnessing the Tectonic Shifts in Global Manufacturing,’ sheds light on the transformation in manufacturing and sourcing across various industries. This shift has been triggered by factors such as trade disputes, the pandemic, geopolitical tensions, and supply chain disruptions. In response, global companies have had to reconsider their manufacturing and sourcing strategies, with India emerging as a favored destination.

The study highlights India’s advantage in direct manufacturing costs as an export platform. According to BCG’s calculations, the average cost of Indian-made goods imported into the US, factoring in factory wages, productivity, logistics, tariffs, and energy, is 15% lower compared to goods manufactured in the US. In contrast, Chinese goods offer only a 4% cost advantage over US-made products and are 21% more expensive when subject to US tariffs related to the trade war.

Specifically, semiconductor and material shipments from India to the US saw a remarkable 143% increase over the past five years, though starting from a modest base. Meanwhile, China’s exports in these categories decreased by 29%. Furthermore, Indian exports of auto components to the US rose by 65%, and mechanical machinery exports grew by 70%.

Ravi Srivastava, the global leader of BCG’s operations practice said that for the past two decades, there has been talk of India’s potential in manufacturing, often with a lingering question mark. Now, it seems that many pieces of the puzzle are falling into place. What sets this study apart is its comprehensive perspective, not only delving into the reconfiguration of global supply chains but also providing validation to the growing narrative of India as a manufacturing hub, he said.

Looking forward, BCG sees potential for India to further enhance its role as a strategic manufacturing and sourcing destination. However, the decision to incorporate India into firms’ strategies depends on a complex mix of factors, and there is no one-size-fits-all solution, it says.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Aatmanirbhar Bharat

All

Defence Ministry set to clear ₹70,000 crore frigates’ order

New Delhi: The defence ministry is set to clear a mega ₹70,000 crore order for new warships for the Indian Navy. The stealth frigates...

Zen Technologies launches AI-powered robot for global defense market

Zen Technologies, an anti-drone technology and defence training solutions provider, in collaboration with its subsidiary AI Turing Technologies on Monday introduced AI-powered robot Prahasta,...

AMCA 5th Generation Stealth Fighter Updates

AMCA to be integrated with sophisticated indigenous Distributed Aperture System (DAS) that making it a formidable air asset for the Indian Air Force

Source : IgMp Bureau India’s Advanced Medium Combat Aircraft (AMCA) is on the brink of a revolutionary transformation with the integration of a sophisticated Distributed...

AMCA to incorporate the best features of both 5th and 6th Generation fighters: ADA sources

Source : IgMp Bureau India's strides toward indigenous air dominance receive a substantial boost with the green signal for the Advanced Medium Combat Aircraft (AMCA)...

Most Popular

Recent Comments

Archive Months

Miscellanous

Naval Group & Hindustan Shipyard Limited discuss Mistral LPD production under tech transfer for the Indian Navy LPD requirement

Source : IgMp BureauFrench Navy Mistral-class Landing Helicopter Dock (LHD)The Indian Ministry of Defence (MoD) had issued a Request For Information (RFI) to procure...

Indian Army honours Maj Ralengnao Khathing with a bust at Yangste in Tawang

Source : Indo-Asian News Service (IANS)Indian Army honours Maj Ralengnao Khathing with bust at Yangste (Photo: Twitter - @GajrajCorps_IA)In a significant move, the Indian...

“Look forward to working together”: PM Modi congratulates Russian President Putin on his re-election

SOURCE: ANI Prime Minister Narendra Modi on Monday congratulated Russian President Vladimir Putin on his re-election as the President of the Russian Federation. PM Modi...

ISRO completes 1st blow down test of Trisonic Wind Tunnel

Source : The Times of IndiaISRO Chief Sri S. Somanath inspecting the Trisonic Wind Tunnel Facility at the Vikram Sarabhai Space Centre (Image Source:...
Visits
error: Content is protected !!