Latest news with #ChinaplusOne
Hans India
22-05-2025
- Business
- Hans India
Will the Rise of 'Make in India' Lead Our Country to be the Global Manufacturing Hub
There is no doubt that India's growth potential has attracted a lot of attention from multinational corporations around the world. Over the past decade, India has been making steady progress towards becoming a major player in global manufacturing. With the launch of 'Make in India' in 2014 - a program that aims to boost India's manufacturing ability in various sectors like cars, electronics, drugs, and aerospace, our country is now being viewed as a strong contender for the title of the next Global Manufacturing Hub. As India aspires to be the next alternative to China in the manufacturing sector, the 'China Plus One' strategy offers India a great chance to rise as a global manufacturing hub. With many countries opting for the 'China plus One' strategy, India has become an attractive choice for many companies for a variety of reasons. So, what exactly is the 'China Plus One' strategy and why is India capable of being the global manufacturing hub? Understanding the 'China Plus One' Strategy and What It Means for Global Trade For the longest time, companies around the world greatly depended on China for manufacturing, as there was no competition for China in the manufacturing sector. However, rising labour costs, geopolitical tensions, and the impact of the COVID-19 pandemic have pushed global businesses to look for other options as well. This gave rise to the 'China Plus One' strategy – a business approach where companies avoid relying only on China for manufacturing. This strategy doesn't mean abandoning China altogether, but to keep China as a major base and add at least one other country like India, Vietnam, or Mexico to their supply chain to avoid overdependence on China. This strategy is changing the face of global trade, as more countries get a chance to grow their manufacturing sectors. Make In India: Laying a Foundation for India to be a Global Manufacturing Hub 'Make In India' is the answer to make India a global manufacturing hub. It is an initiative launched in 2014 by the Indian government to boost manufacturing in the country. It encouraged both domestic and international companies to manufacture in India by simplifying processes and promoting investment. The initiative focused on key sectors such as electronics, automotive, pharmaceuticals, and textiles. Due to this, our country also saw a rise in Foreign Direct Investment (FDI). Wondering why this is so important? It creates jobs, supports local businesses, and helps the economy grow. Why is India Capable of Being the Global Manufacturing Hub? The present US-China trade tensions have prompted American companies to reduce dependence on Chinese manufacturing. India emerges as a neutral, reliable alternative for US firms looking to shift or diversify their supply chains. So, let's see what makes India the top option for nations to shift their base as the manufacturing hub. Growing and Cost-effective workforce – India has a vast growing workforce with a strong base of English-speaking professionals and competitive wages compared to China. India has a vast growing workforce with a strong base of English-speaking professionals and competitive wages compared to China. Expanding Infrastructure – India has good industrial corridors, ports, and digital connectivity to support global supply chains. – India has good industrial corridors, ports, and digital connectivity to support global supply chains. Thriving Startup ecosystem – The Government of India has encouraged the growth of startups with many government initiatives which in turn encourages innovation and entrepreneurship in the manufacturing industry. The Government of India has encouraged the growth of startups with many government initiatives which in turn encourages innovation and entrepreneurship in the manufacturing industry. Adoption of Digital Technologies – India has always been at the forefront when it comes to adopting the latest digital technologies. It always focuses on digital developments, which help to support global supply chains. Giants like Apple, OnePlus, BMW and more have already established their manufacturing units in India which once seemed unlikely. While challenges exist, with the support of FDI, smart industrial policies, an improving ease of doing business, infrastructure development, and global trends like the China plus one strategy, India is clearly going in the right direction of becoming a Global Manufacturing Hub.
Economic Times
23-04-2025
- Business
- Economic Times
ICEMA asks govt to re-evaluate long-term implications of steel safeguard duty
iStock India on Monday imposed a 12 per cent provisional safeguard duty for 200 days on five steel product categories, including hot rolled coils, sheets and plates, to protect domestic players from surge in imports. NEW DELHI: Indian Construction Equipment Manufacturers' Association on Tuesday asked the government to re-evaluate long-term implications of the 12 per cent safeguard duty imposed on select steel products saying it is expected to disrupt supply chain and cost structures in the sector. Steel is the most critical raw material in construction equipment (CE) manufacturing, particularly specialised high-tensile and performance-grade steels that are currently not produced in India at sufficient volumes or specifications, Indian Construction Equipment Manufacturers' Association (ICEMA) said in a statement."As these materials are largely imported, the imposition of the safeguard duty immediately compromises manufacturers' ability to source essential inputs, threatening both production continuity and the timely delivery of equipment," it on Monday imposed a 12 per cent provisional safeguard duty for 200 days on five steel product categories, including hot rolled coils, sheets and plates, to protect domestic players from surge in imports. The decision followed a recommendation for the same by the Commerce Ministry's investigation arm DGTR. Last month, the DGTR suggested to impose the duty. "The CE industry urges the government to urgently re-evaluate the long-term implications of the safeguard duty and consider mitigation measures to cushion the blow to downstream industries," ICEMA said. It further said, "A well-balanced, data-driven policy that supports both domestic steelmakers and vital sectors like construction equipment manufacturing is essential to protect India's infrastructure ambitions and global competitiveness."The CE industry body said even prior to the announcement, the mere initiation of the safeguard inquiry had triggered substantial price volatility."Steel prices rose by approximately Rs 10,000 per tonne during the course of the investigation, squeezing already narrow margins. With the 12 per cent duty now officially imposed, input costs are expected to rise even further, forcing CE manufacturers to consider price hikes that will ultimately impact infrastructure project costs nationwide," ICEMA said. The decision also risks undermining India's export competitiveness in the global construction equipment market, particularly at a time when international buyers are actively seeking alternatives to China under 'China plus One' sourcing strategies, it added. ICEMA cautioned that with rising input costs and reduced flexibility, Indian CE manufacturers may lose momentum in capturing global market share, a setback to the broader goal of establishing India as a global manufacturing hub.
