{"id":94469,"date":"2021-03-12T18:41:07","date_gmt":"2021-03-12T13:11:07","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=94469"},"modified":"2021-03-15T17:54:43","modified_gmt":"2021-03-15T12:24:43","slug":"indias-rise-as-the-new-global-manufacturing-hub","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/indias-rise-as-the-new-global-manufacturing-hub\/","title":{"rendered":"India&#8217;s Rise as the new global manufacturing hub"},"content":{"rendered":"\n<p><strong>Synopsis: <\/strong>India\u2019s recent achievements have positioned it as an alternative global manufacturing hub to China at the global level.<\/p>\n<h5><strong>Background<\/strong><\/h5>\n<ul>\n<li>Democratic countries consider a rising China, with its authoritarian one-party system, as a challenge to the democratic order.<\/li>\n<li>This provided the strategic case for the formation of <strong>Quadrilateral Security dialogue. It envisioned to <\/strong>develop a more <strong>sustainable model of governance<\/strong>.<\/li>\n<li>But the QUAD formed in 2007 was not able to progress further. The dependence on China\u2019s factories kept the grouping of democracies from emerging.<\/li>\n<li>But two recent developments have completely changed the dynamic.\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>One, Australia returning to the <strong>Malabar Naval exercises<\/strong> in 2020, after 13 years.<\/li>\n<li>Two, the <strong>first summit-level meet of the Quad <\/strong>is scheduled to take place in March.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li>The rise in India\u2019s manufacturing ability seen as an alternative global manufacturing hub to China. This has been one of the reasons for the above-mentioned developments.<\/li>\n<\/ul>\n<p><strong>What are the recent promising developments showcasing India as a new global manufacturing hub?<\/strong><\/p>\n<ol>\n<li><strong>First, the success in manufacturing PPE kits at a large scale. <\/strong>Initially, after the pandemic, the world was dependent on china to secure supplies of PPE kits. But, India\u2019s ability to produce on a mass scale at a much cheaper price provided an alternative to the other countries. A similar case was with ventilators and other essential supplies, such as the drug HCQ.<\/li>\n<li><strong>Second, the success of \u2018Vaccine Maitri\u2019 diplomacy. <\/strong>India exported millions of vaccines to other countries in need and all through domestically-manufactured vaccines<strong>. For example,<\/strong> Canada Pakistan, Caribbean Islands, Brazil and many more<strong>.<\/strong><\/li>\n<li><strong>Third, the growing success of India\u2019s private industry. For example,<\/strong> the manufacturing capacity of Hindustan Syringes &amp; Medical Devices was almost 6,000 syringes a minute.<\/li>\n<li><strong>Fourth, India\u2019s success in precision high-end manufacturing. <\/strong>India\u2019s<strong> PLI scheme <\/strong>was able to attract 22 top companies, including Apple and Samsung mobile phones in the electronics\u2019 manufacturing segment. It is expected that, over the next five years, a manufacturing capacity of over $150 billion and exports of $100 billion will be tied up through the <strong>PLI scheme<\/strong>.<\/li>\n<li><strong>Fifth,<\/strong> the success of India\u2019s<strong> fourth-generation fighter jet Programme<\/strong>. The government has decided to procure 83 indigenously-developed <strong>Light Combat Aircraft (LCA) Tejas<\/strong> for the Indian Air Force. Very few countries have such ability to indigenously manufacture high-tech fighter planes.<\/li>\n<li><strong>Sixth, <\/strong>simultaneously India\u2019s Economic policy reforms have made India an attractive manufacturing destination. For example,\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>India has the lowest tax rate anywhere in the world. (15 per cent for new manufacturing units).<\/li>\n<li>FDI norms have been further relaxed to allow for automatic approval processes in some sectors even up to 100 per cent.<\/li>\n<li>Privatisation of PSUs to bring more efficiency and managerial capacity.<\/li>\n<li>Labour laws have been reformed to ease compliance burdens.<\/li>\n<li>Abolition of Rent-seeking behaviour by making the taxation procedure faceless.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li>Apart from this, effective bankruptcy laws, low-interest rates, strong digital infrastructure makes India a more attractive destination for manufacturing.<\/li>\n<\/ol>\n<p>All the benefits that China provided &#8211; quality, scale, speed, skilled manpower and a huge domestic market are now operative in India without the drawbacks of the Chinese model. So, India have positioned itself well as a new global manufacturing hub.<\/p>\n<p><strong> Source: <a href=\"https:\/\/indianexpress.com\/article\/opinion\/columns\/quadrilateral-security-dialogue-india-modi-foreign-policy-manufacture-sector-7224378\/\">Indian Express<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Synopsis: India\u2019s recent achievements have positioned it as an alternative global manufacturing hub to China at the global level. Background Democratic countries consider a rising China, with its authoritarian one-party system, as a challenge to the democratic order. This provided the strategic case for the formation of Quadrilateral Security dialogue. It envisioned to develop a&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/indias-rise-as-the-new-global-manufacturing-hub\/\">Continue reading <span class=\"screen-reader-text\">India&#8217;s Rise as the new global manufacturing hub<\/span><\/a><\/p>\n","protected":false},"author":10316,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[1302],"class_list":["post-94469","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-eco_7","entry"],"jetpack_featured_media_url":"","views":{"total":2,"cached_at":"","cached_date":1701540954},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/94469","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10316"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=94469"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/94469\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=94469"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=94469"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=94469"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}