India is becoming the world's new 'manufacturing boss'

India's identity is no longer limited to just one big market. In the last few years, the country has rapidly emerged as a global manufacturing hub. Recent big announcements are further strengthening this change. Companies from the world's most advanced industrialized economies are no longer making products in India just for local consumption, but are also making India their main hub for high-value production, research and exports.

Ford prefers India despite American pressure

American auto giant Ford has announced that it is repurposing its Chennai plant to make high-end engines. More than 2,35,000 engines will be manufactured from here annually and sent to other markets of the world. The interesting thing is that these engines will not be sent to America.

All HP laptops will be made in India only

India's dominance in electronics manufacturing is also increasing. American tech giant HP plans to manufacture all its laptops in India. The CEO of HP recently said that in the next three to five years, all the personal computers sold in India will be made here. Not only this, in future laptops will also be exported from Indian plants only.

The magic of PLI scheme worked

This decision is completely in line with the government's Production Linked Incentive (PLI) scheme, which is designed to attract large-scale electronics production. This has dual benefits for HP: first, it will produce in one of its largest markets (India) and second, it will also position India as a strong export hub compared to China and South-East Asian countries.

India is becoming an 'ecosystem of innovation'

While American companies are focusing on cost and strategy, South Korean companies are betting on long-term industrial and technological engagement with India. LG Electronics is considering shifting the production of 'capital goods' (ie heavy machines used in electronic factories) to India. Till now this production was done in Korea, China and Vietnam.

Along with this, LG Group is also setting up a Global Research and Development (R&D) center in Noida with an investment of Rs 1,000 crore, which is expected to provide employment to about 500 people.

Three big reasons behind this big change

This inclination of the world towards India is based on three main forces.

• First, the government's clear industrial policies like 'Make in India', PLI scheme and 'Atmanirbhar Bharat', which have encouraged companies to produce here.

• Second, India's large youth population, which is technically skilled and speaks English. This workforce is capable of every task from design to production.

• And third, the changing global environment. The tension between America and China and the global thinking of not keeping the supply chain dependent on just one country (China) has made India a strategic and reliable option.

For all these reasons, India is no longer making its place as a cheap alternative to China, but as a 'parallel efficiency centre' serving global markets.