India Emerges as Key Plus One Manufacturing Hub

16 Nov 2023 CW Team

As manufacturers seek to diversify their global supply chains, India is emerging as a prominent "plus one" location, offering a strategic alternative for businesses. The ongoing trend of decoupling from traditional supply chain models has created opportunities for India to position itself as a key destination for manufacturing.

This shift is driven by a desire among companies to reduce dependency on a single manufacturing base, especially in the wake of disruptions caused by the COVID-19 pandemic. By adopting a "plus one" strategy, manufacturers aim to establish an additional production hub, providing flexibility and resilience to their supply chains.

India's attractiveness as a manufacturing hub is bolstered by factors such as a large consumer market, a skilled workforce, and a conducive business environment. The government's initiatives, including the "Make in India" campaign and various reforms, further enhance India's appeal to global manufacturers looking to expand or diversify their production capacities.

The concept of "India plus one" involves companies maintaining their existing manufacturing base while simultaneously establishing a secondary base in India. This approach mitigates risks associated with disruptions, geopolitical factors, and supply chain vulnerabilities.

As global businesses reassess their supply chain strategies, India's role is evolving beyond being just a market to become an integral part of global manufacturing networks. The country's diverse capabilities, coupled with ongoing reforms and initiatives, position it favourably to attract increased investments and collaborations.

The "India plus one" strategy aligns with the broader goal of enhancing India's manufacturing sector, contributing to economic growth, and creating employment opportunities. As businesses increasingly recognise the importance of supply chain resilience, India is poised to play a pivotal role in shaping the future of global manufacturing dynamics.

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