COVID-19 has been one of the worst events in history of modern world, affecting almost the entire planet, directly and indirectly. It has left the whole world in a state of mess. Disturbing logistics and supply chains on the global level, it has certainly been a bane. Surprisingly enough, such an event, too, came as a boon for the Indian Manufacturing Sector in a way.
India has been one of the major economies in the world. The growth can be attributed to the development of the manufacturing sector of India.
According to some market experts and stats the newest update in the series is that India can become the global manufacturing hub by the year 2030.
Major companies shifting to India
Before COVID, and on paper, today also, China is the biggest manufacturing unit in the world, having manufacturing plants of a large number of global companies. The key aspects are the availability of cheap labour, low tariffs, high access, and not a stringent regulatory compliance of the Chinese business ecosystem, making it ‘the World’s factory’.
However, because of the trade war between the USA and China during the Trump administration, a number of American companies shifted to India and South-east Asian countries. That was the first major setback for China.
The final nail in the Coffin was the COVID 19 outbreak all around the world. Due to the mismanagement and misinformation by the Chinese government, almost the whole world was displeased with China, resulting the Western countries imposing heavy sanctions on China, compelling many companies to leave China and shift elsewhere.
How did India seize the opportunity?
There is no denial about the fact that India has been trying to be the factory of the world for a long time. Decade after decade, India has only improved in this sector. With the emergence of the Modi Administration, India sought to achieve this goal even faster, launching several initiatives such as ‘Make in India’ etc. Plus, the Indian Government’s effort to lure Western companies to establish manufacturing plants in India seems to work wonders.
Today, more than 1,000 companies in the USA have based their operations in India. Be it Amazon, Apple, PepsiCo etc, major International companies see India as a great alternative to China. Even Tesla has been giving it a thought, too.
How is this helpful for India?
Today, these companies have been a great source of income for a lot of Indians. Not just that, it has been a massive push to the ‘Make in India’ initiative of the Central Government. Also, manufacturing shift to India, will be fundamental to India becoming one of the highest growing economies. We, as Indians, should feel proud of the recent events regarding it. As more and more people are switching to the slogan of ‘Vocal for local’, India is certainly just a few steps away from becoming the global manufacturing centre.
As the country is progressing, we are soon going to have ‘Aatmanirbhar Bharat’ in true sense. Today, a lot of companies are striving hard to contribute to the initiative. Gebi is one such company of India. Earlier, this kind of product-list was only manufactured by foreign companies. Gebi has been one of the major players having a wide range of ‘Made in India’ products. This was merely an example. Let us hope other such companies thrive in India to make India, literally Atma Nirbhar.