Expansion Management

What’s Making India Attractive to Western Manufacturing?

Sept. 21, 2015

Companies should no longer only consider India as a supplier of software and call center services.

Diversifying the supply chain by having facilities in India, is the reason that Western companies should be looking at India according to Vijay Govindarajan and Gunjan Bagla in article in the Harvard Business Review.

Companies “should no longer only consider India as a supplier of software and call center services,” the authors proclaim.

Manufacturing in India has a great potential for a number of reasons; India is the third-largest economy in purchasing power parity after the U.S. and China, it has a large population of engineers and factory workers, its intellectual property is widely respected, and it is easy to find English-speaking managers there.

In the article the authors look at the example of three companies -- Abbott, GE and Cummins—who have had success in India.

Setting up new plants is not the only way to operate in India. “Indian suppliers can be globally competitive in manufacturing items as diverse as manhole covers, automotive components, and even personal care cosmetics, which shows how India’s manufacturing sector is advancing beyond bits,” the authors explain.

In fact the author’s believe that having a trusted local partner or advisor to guide western executives’ efforts are necessary to understand the challenges of manufacturing in India.

Read about Abbott, GE’s and Cummins success in India.

About the Author

Adrienne Selko | Senior Editor

Focus: Workforce, Talent

Bio: Adrienne Selko has written about many topics over the 17 years she has been with the publication and currently focuses on workforce development strategies.She is also a senior editor at Material Handling & Logistics and EHS Today.

Editorial mission statement: Manufacturing is the enviable position of creating products, processes and policies that solve the world’s problems. When the industry stepped up to manufacture what was necessary to combat the pandemic, it revealed its true nature. My goal is to showcase the sector’s ability to address a broad range of workforce issues including technology, training, diversity & inclusion, with a goal of enticing future generations to join this amazing sector.

Why I find manufacturing interesting: On my first day working for a company that made medical equipment such as MRIs, I toured the plant floor. On every wall was a photo of a person, mostly children. I asked my supervisor why this was the case and he said that the work we do at this company has saved these people’s lives. “We never forget how important our work is and everyone’s contribution to that.” From that moment on I was hooked on manufacturing.

I have talked with many people in this field who have transformed their own career development to assist others. For example, companies are hiring those with disabilities, those previously incarcerated and other talent pools that have been underutilized. I have talked with leaders who have brought out the best in their workforce, as well as employees doing their best work while doing good for the world.