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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.

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