The pandemic of 2020 has shown the world that it is a risky business to depend on a single country for the manufacturing needs. Sure thing, the labour could be cheap, however, various socio-economic, as well as political reasons, could also hamper the business to such outsourced countries. The hampering of the supply chain has created a lot of chaos and made the businesses realize to diversify the manufacturing needs. And for this, India has taken measures to make itself an efficient manufacturing destination through its ‘Make in India’ scheme. Moreover, various programmes have started and incentives have been offered to make India the best Manufacturing hub in the world.
Here are the reasons why India has the potential to be a preferred manufacturing destination
Skill India Programme
‘Skill India’ programme has been launched in India with an intention to harness the youth with the skills equivalent to that of the international standards. This programme will benefit the youth to better their skills in all the engineering sectors. Moreover, not only the multi-skill development programme will benefit the job aspirants but it will also guide in creating the entrepreneurial spirit in the youth.
How does this help a business you may ask? The answer is simple. A skilled youth that has a more practical approach towards the work assigned to them rather than the one who is yet to receive practical training. This will definitely save businesses the time and energy that they invest in training fresh recruits and in turn will increase their productivity.
Economic Task Force
To attract companies leaving other oriental countries as their manufacturing bases, the Uttar Pradesh government has set up an economic task force. This force will cater to the requirements of these companies and will help them with the allocation of resources both human and raw which will help them to start the business in the state. Furthermore, India is also planning to allocate land which is larger than the population of Luxembourg to the firms that will be moving their base to India. And for this, around 1000 companies are already have been reached by India.
Availability of Skilled Manpower
India is the third-largest country in the world having technicians and scientists. And most of the human resources are specialized in Semiconductor Design and Embedded Software. Besides engineering, India is also having skilled manpower who are specialized in making handicrafts and handlooms. These handicrafts and handlooms are in great demand in the international market and are generating INR 80 thousand crore revenues. Furthermore, due to skilled manpower, robust R&D centres, and low-cost steel availability, India has become the largest manufacturer of two-wheelers in the world.
The production linked incentive scheme aims to encourage domestic firms to manufacture the raw materials in the country itself rather than importing. The scheme also encourages the firms to expand the existing manufacturing units across India. PLI scheme will cover the sectors of mobile phones, food processing, allied equipment, textiles, pharmaceutical ingredients and medical devices. The major reason why these industries were chosen is because of the number of the qualified and able working population available in the respective sectors in India. This will help the country in offering some brilliant Affordable Workforce Cost.
Affordable Workforce Cost
India is having a huge number of the working population. With a total of 70% of its population being of the working as well as employable age, are employed in diverse fields and expertise. However, as an axiom, the number of people is not equal to the number of employment opportunities, through our FDI policies we will be able to create more and more opportunities to the ever-growing working population. However, since in the current state, this ratio of opportunities remains low, there is a huge availability of human resources, the workforce at low costs. According to the studies in India, the average minimum wage for contract workers is just US$148 per month as compared to US$234 in China. The difference between the wages clearly shows how India can be a cost-effective choice for your manufacturing needs.