New Delhi, July 7 (IANS). According to a report released by industry organization Assocham on Tuesday, India is rapidly strengthening its place among the world’s major manufacturing centers and is emerging as the biggest beneficiary of changes in the global supply chain.
The report says that after the Covid-19 pandemic, there has been a major change in the global manufacturing system. Now, instead of relying only on China, companies around the world are adopting strategies like ‘China + 1’, nearshoring and friendshoring, so that their supply chains can become stronger and more secure.
The report analyzes the world’s 10 largest manufacturing economies, which together account for about 65 per cent of global manufacturing output, with India among the fastest-growing manufacturing countries after the pandemic.
According to the report, India’s average manufacturing growth rate in the pre-pandemic period of 2016-19 was 3.44 percent, which increased to 4.15 percent during 2022-25. During this period, India not only reached above the global average but also started performing almost two percentage points more than the world average.
After the pandemic, India has joined the list of countries which have performed better than the global average. America, France, Germany, Italy and Britain are also included in this list. Before the pandemic, only China, Mexico and Russia were registering manufacturing growth higher than the global average.
Assocham President Nirmal K. Minda said that the global manufacturing system is undergoing a gradual but significant change. Now companies are paying equal attention not only to production efficiency but also to the strength and diversity of the supply chain.
He said that the continuous improvement in India’s manufacturing sector is the result of the government’s economic reforms and increasing investor confidence.
According to the report, there are several key reasons behind India’s growing competitiveness, including strong domestic demand, better infrastructure, improving logistics, increasing global investment due to China+1 strategy and various government schemes.
The report said government initiatives such as the Production Linked Incentive (PLI) scheme, industrial corridors and PM Gati Shakti have played a significant role in making India a preferred destination for global manufacturing investment.
ASSOCHAM believes that if India further strengthens logistics and industrial infrastructure, develops domestic supplier network, improves ease of doing business, promotes Industry 4.0 technologies and makes effective use of Free Trade Agreements (FTAs), it can further strengthen its position in the global value chain and establish its identity as the world’s leading manufacturing hub.
–IANS
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