The coronavirus pandemic has shaken up the whole world and India also hasn’t been spared by its consequences. But amid this tough scenario, India is emerging as a new international production hub as firms find ways to market their supply chains and discover new markets.
Many reports reveal India becoming a destination of choice for international manufacturing giants now producing in China. Many nations like South Korea, America, and Japan, which have been previously determined by China, are currently excited about altering some or all their production to India. These firms belong to various sectors such as pharmaceuticals, cars, electronic equipment, fabrics, and computer hardware.
In any case, Facebook has spent USD 5.7 billion in Reliance Jio throughout the coronavirus pandemic. Additionally a renowned German footwear manufacturer, Von Wellx will shift its production out of China to Agra. All headlines show that overseas businesses see a significant economic and growth potential in India.
Advantages of having a Production Setup in India
India has lots of benefits as a production hub for businesses globally. The nation includes low-costs in fabricating, relatively inexpensive land and labor, ever-improving infrastructure, positive business coverages, decreased corporate tax rates, and government assistance.
Anyway, India is vigorously working to improve its supply chain capabilities to appeal to overseas firms seeking to change from China into India. 1 case of that is the powerful running of this very first double-stack container train from the Railways. It reveals India is capable of supplying a world-class center for the movement of products by any transport network.
Government Efforts to Boost India as the best Manufacturing Destination
The Indian Government is actively bringing reforms to improve the Indian market and encourage FDI. A Few of the Actions taken by the Government include:
- The company rate tax has decreased from 30 percent to approximately 25%. India’s corporate tax rate is currently the lowest in Southeast Asia.
- Initiatives like Earn India’ and Skill in India’ were introduced to concentrate on creating job opportunities in the manufacturing industry and improving skill development to make a huge pool of skilled human resources.
- Property acquisition principles have relaxed.
- Companies and Limited Liability Partnerships Gain from many relaxations from the Businesses Act 2013 and also LLP Act 2008.
- Income taxation, GST, and habits reliefs came in as Lockdown was raised.