Global Investment in the Indian Manufacturing Sector Gets a BoostDecember 20, 2023
Global companies have been showing great interest in India as their manufacturing hub. Whether it’s tech giants like Apple or retail companies like Amazon, India is rapidly becoming a favourite amongst companies from all over the world. Because of this, the country’s manufacturing sector contributes to about 17% of the total GDP and employs a large number of the workforce.
The Indian government is also pushing the country as the hub for major global corporations to manufacture their products. With various schemes introduced to increase foreign investment in India, companies from all over the world are quite interested in setting up manufacturing units here. In addition to the incentives provided by the Indian government, there is also the advantage of a less expensive workforce that is favourable for foreign investment in India.
Amazon’s cloud computing division, Amazon Web Services, has planned to invest $13 billion (over Rs 1 lakh crore) in India by 2030 to build its cloud infrastructure and employ thousands of people. On the products side, Apple recently opened its first official stores in India, one in Mumbai and the other in New Delhi. This has been a major step towards foreign investment in India from big companies from the US.
Major retail brand Walmart also intends to invest more in India, mainly by increasing planned exports from India worth $10 billion annually by 2027. Networking equipment makers are also looking to be major players in foreign investment in India, with US company Cisco Systems setting a target of $1 billion in production and exports from India over the next few years.
Foreign investments in India have been soaring high in recent years, with a growth of 10% from $44.7 billion in 2021 to an impressive $49.3 billion in 2022. This boost is due to companies from around the world relying on India as a manufacturing hub to reduce their dependence on China in recent times.
With India becoming a global favourite for foreign investments, a lot of companies other than the usual large corporations are also interested in India. At Corporate Leaps, we provide a one-stop solution for foreign companies wanting to set up their operations in India and help with any and all processes it entails.