Inside India's Manufacturing Revolution: Strategies and Insights for Business Success

Published: March 2024

India is emerging as an important manufacturing destination in Asia due to several factors. We discuss market entry strategies for foreign companies and expansion strategies for local players aiming to attract foreign investment and technology.

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India is emerging as an important manufacturing destination in Asia due to several factors. It boasts a large, cost-effective labor force and a massive domestic market of over 1.4 billion people. Its strategic location facilitates access to both domestic and international markets.

Government initiatives like the Production-Linked Incentive Schemes aim to attract investment and simplify regulatory processes. In the realm of infrastructure, there has been massive spending led by the government and public sector undertakings. India is steadily improving its transportation networks and power supply, and the country's technological capabilities and diverse manufacturing base contribute to its attractiveness.

Policymakers are keen to expand renewable energy capacity, boost frontier industry capabilities – such as in IoT, green hydrogen production, and semiconductor manufacturing, and facilitate the sustainable growth of a developed economy. Further, trade agreements are being negotiated to further enhance India's access to global markets and promote domestic export-oriented industries.

Overall, India's strategic advantages and government support position it as a significant player in global manufacturing.

In this edition of India Briefing Magazine, we offer an overview of the country's rapidly growing manufacturing landscape and spotlight key initiatives as well as challenges facing investors. Next, we discuss market entry strategies for foreign stakeholders and expansion strategies for domestic players seeking foreign capital and access to technology. Finally, we do a deep dive of the futuristic industries where India is growing its manufacturing capacity on one hand, and prioritizing sustainability goals on the other.

With extensive experience in assisting foreign enterprises in Asia, both in the pre-investment and market entry stage, Dezan Shira & Associates is well-equipped to assist your company meet its growth goals. Our offices across India provide valuable local insights and expertise. For more information, please contact us at india@dezshira.com.

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