India have a Great opportunity to emerge as an Alternative Global manufacturing hub.
China is losing global trust,Coronavirus end of China’s 30 year role as the Global Manufacturing Hub....large number of US,Japan and South Korean companies seeking to move manufacturing base from China to India...due to trade protectionist measures and coronavirus.
For Example-
1)Accroding to US-India Strategic and Partnership Forum (USISPF),200 US companies seeking to move manufacturing base from China to India.
The news published on businesstoday.in on dated 27April 2019.
2) Korean companies keen to move out of China to India - indiatimes.com 13April 2020.
3) Japan to pay firms to leave China as part of corona stimulus | Europeneweurope.eu › article 09-Apr-2020.
4) Quarter of German firms in China plan to leave - Asia Times12-Nov-2019.
5) As coronavirus cripples global supply lines, more U.S. firms looking to leave china...www.latimes.com › 04-Mar-2020.
India have a great great opportunity to emerge as an alternative Global manufacturing hub.india can attract 💰FDI worth USD 200 billion annually , india can lead Global 4th Industrial Revolution.
The Swiss Bank estimates that India’s foreign direct investment (FDI) pipeline has doubled to 💰$175 billion (12 lakh cr) versus $87 billion last year from sectors like construction, electronics, infrastructure, textiles, food processing and pharma.
I think india can attract total💰FDI worth USD 600 billion between 2021-24...can lead 4th Industrial Revolution.
Key points in favour of India
1) Low wage and skilled labour-
India's monthly Wage half of China,only $80-$120,while China $150-$350
2)We know Govt of Gujarat and UP offer special package to MNCs ,want to shift their manufacturing units from China.
3)World Bank's ease of doing business ranking.In six years of the Narendra Modi government, India’s ranking improved 79 places from 142nd in 2014 to 63th in 2019, a record for a major economy.
We can expect India's name may be in T0P 25 world bank ease of doing business list by 2022....we know modi Govt has taken several initiatives to boost investment.
4) India developing land twice Luxembourg's size for firms moving out of China.
According to the World Bank,Luxembourg is spread across 243,000 hectares.
A total area of 461,589 hectares has been identified across the India ,that includes 115,131 hectares of existing industrial land in states such as Maharashtra, Gujarat, Tamil Nadu and Andhra Pradesh.
5) Large consumer market.
We know India is a one of largest market of 1.35 billion or 135 cr people and any MNCs can't ignore.
6) Large number of MSMEs
India has almost 65 million MSMEs unit.We know MSMEs considered as the backbone of the manufacturing sector.....we also know MSMEs are complementary to large industries as ancillary units.
In India MSMEs contribute 8% of India’s GDP, around 46% of the manufacturing output, and approx 42% of country's export.
7) Make in India
Make in India campaign, one of the core economic strategies of the Modi administration.Make in India will help India to become a manufacturing based economy from an Agrarian economy.
The make in India launched by Hon'ble pm modi in September 2014,the main aim to transform india into a global manufacturing hub.
Manufacturing sector contributes only 16% in Indian Economy,very low....the main aim of Make in India initiatives to increase contribution of manufacturing sector from existing 16% to 35% by 2025.
We know FDI up after lunch of Make in India , india has received more than $350 billion FDI 2014-2020.
India's total FDI can hit USD 600 billion 2021-24.....it can generate millions of new jobs.….India can leads the 4th Industrial Revolution in the world....and India's export economy could reach $1.5 trillion by 2024.
Strongly believe that India will be a $5 trillion strong Economy by 2024.
___________
References-
1) Huge ‘Make in India’ success! Rs 3 lakh crore saved in last 4 years by made-in-India mobile phones. 24-Aug-2018>financial express.
2) 1,000 companies want to shift from China to India' - rediff.com ›22-Jun-2020.
3) FDI inflows rise 9.8% to record $82 billion in FY21 TNN May 25, 2021, 06:58 IST.
4) India emerges as second most attractive manufacturing hub globally, says report>economictimes.com >Aug 25,2021.
