India Poised To Become "Manufacturing Powerhouse"

[OhioChick]

Manufacturing.Net - February 26, 2007

India is poised to become a “manufacturing powerhouse,” according to a recently released study.

Research by The Boston Consulting Group and The Wharton School of the University of Pennsylvania found that issues holding India back, like poor infrastructure and restrictive labor laws, are rapidly changing, which could help India grow its manufacturing sector in the next five to 10 years.

“Over the past five or six years, many firms have restructured their manufacturing operations and implemented world-class practices,” says Arindam Bhattacharya, a partner in BCG’s New Delhi office. “Slowly but surely, they have started building a globally competitive manufacturing base in industries like pharmaceuticals, auto components, cars and motorcycles.”

Driven by the emergence of a large domestic market and relatively low-cost workers with advanced technical skills, many companies are setting up manufacturing operations in India. Ford, Hyundai and Suzuki all export cars from India in significant numbers. ABB, Schneider, Honeywell and Siemens have set up plants to manufacture electrical and electronic products for domestic and export markets.

According to the study, India is currently in the midst of the most ambitious infrastructure upgrade in the nation’s history. Improved roads, power and airports could increase the country’s annual GDP growth rate to eight percent. India’s outsourcing providers are also moving up the value chain toward knowledge process outsourcing (KPO) services, focusing on area expertise.

http://manufacturing.net/article/CA6419518.html

[JustABozoOnThisBus]

1. They've had some industry for a while ...

... and they don't really have to worry about the expense of emission control. Like China, they were exempted from the restrictions of the almost-ratified Kyoto Protocol. So, they are free to become the "next China" without buying any so-called Carbon Credits, should the Kyoto agreement get signed.

It makes sense that the big European and American manufacturers want to set up there. No emissions hassles, and probably a more friendly government to deal with. At least, a government that we're not likely to go to war against (which could be bad for business).

[twiceshy]

2. When do we get our infrastructure upgrade?

The city I live in used to manufacture Rolls Royce automobiles, state of the art racing planes, Indian Motorcycles, Diesel engines, military rifles and armaments, and a host of other products. Now we manufacture gang-bangers, social service dependees, and sick people for the hospitals. Yeah, that's an economy with a great f'in future. Oh yeah, half the students who enter high school never graduate. Welcome to the future.