Changes in policies improved India's investment regime: Report

India has made significant changes to some of its policies, including FDI, tariffs and customs procedures, since May, "improving" access for US trade and investment to the Indian market, a federal trade commission has said. In a report prepared at the request of the House of Representatives Committee on Ways and Means and the Senate Committee on Finance, US International Trade Commission (USITC) said after Narendra Modi became Prime Minister, the government has made significant changes to its policies in the key areas of foreign direct investment (FDI), tariffs and customs procedures, local-content and localization requirements, and standards and technical regulations. In the report, which was released to the press on Thursday, USITC said since May 2014 India has raised FDI equity caps in the insurance and defense industries, removed the requirement for pre-investment authorizations in several industries and permitted FDI in certain segments of the railway industry. "These changes have helped to improve India's overall investment regime," USITC told the US Congress in its investigative report. Noting that India has made a small number changes in its tariffs and customs procedures, the 258-page report said New Delhi has reduced tariffs on some information, communications, and telecommunications (ICT)-related products, but increased tariff on several telecommunications-related products. Some changes have improved US access to the Indian market, the federal trade body felt. India has made changes to policies and practices regarding local-content requirements and localization measures, the report said, adding that the changes expand or propose to expand several local-content and localization requirements affecting certain ICT, electronics, and defense and civil aerospace products. The changes affect measures that require foreign firms to purchase Indian inputs, conduct a share of business in India, conduct certain business activities in India, or submit to India-specific testing or registration, the report said. Further, the government has expressed a commitment to harmonies India's standards with international standards and to increase engagement with the US. Source-the times of India For further assistance related to Investment based queries in Dubai &India, please visit: http://www.pursueasiaconnexio.com/#

5 reasons why 2015 is a great year to invest in Dubai

Over the last 20 years or so, Dubai has emerged from being a small trading city that not many people have heard of to becoming the business hub for Middle East and one of the most popular tourist destinations on the planet. This transition has happened over such a short period of time that people the world over have watched in envy as the beautiful city has flourished. Iconic landmarks such as the 7-star Burj Al Arab hotel and the Burj Khalifa – the world’s tallest building certainly help but it’s the dynamic undercurrent of the city that continues to impress people the most. During the global recession of 2008 and 2009, Dubai did of course suffer, and many commentators questioned whether Dubai could indeed bounce back from its financial struggles. Just a few years on and those questions and critics alike have been answered in style. The city is easily accessible from around the globe and with incredibly low crime rates; Dubai is the home (of choice) for over 2 million expatriate workers, who have helped drive the economy during this time. Together with resolute leadership from the ruling family and an almost unmatchable drive to succeed amongst its population, Dubai is primed to grow further both in terms of economic wealth and as an iconic destination for tourist and business travellers over the coming years. Based on this and a wealth of supporting social and economic factors, this year may be the year that savvy investors should take note of the opportunities in Dubai and make strategic investments. Below are five factors that support this: 1. Dubai’s Economic Recovery While the global economic recovery is gathering momentum in a steady manner across the world, emerging regions such as the Middle East have fared strongly against both Europe and the USA, where both high unemployment and low interest rates hold back the potential of a fast recovery. Dubai in particular continues to attract multinational businesses, investors and entrepreneurs to the city, which in turn has helped the population of Dubai grow by over 10% from 2010 to 2013. Couple that with a zero unemployment figure and you start to see why Dubai is such an attractive place for investors. 2. World Expo 2020 Dubai is set to host the World Expo in 2020 and in return will become the center of attention for businesses, trade departments within governments and tourists for almost one entire calendar year. The event will also create over 250,000 jobs and is expected to attract over 25 million tourists during the expo. Demand for both long term and short term accommodation will be high both in the buildup and during the event, with a number of hotels and residential apartments and villas already planned for development in the coming months. 3. Improving governance and favorable policies Confidence levels are starting to rise with improved scrutiny, oversight and governance. Regulatory and legal frameworks aimed at safeguarding the interests of investors and consumers are being developed. Implementation of laws and regulations is bringing the irresponsible speculations and unethical practices to a halt meaning investors can feel confident putting their money and other resources here. In the last few years, governmental departments such as the Real Estate Regulatory Registry (RERA) have been formed to protect homeowners, tenants and other stakeholders of the Dubai real estate market by providing strict regulation and guidelines. 4. Affordability of Dubai's real estate Despite the misconception that Dubai is the home of only the rich and wealthy, properties in this city are actually far cheaper than those in their counterpart cities. This presents a unique proposition for investors. If you consider that the majority of Dubai’s population rent their accommodation rather than buy, you will understand that rental returns are significantly higher than most other cities in the world where buying a property is a more realistic option. The fact is that it’s actually difficult to buy a property in Dubai unless you have been established in the city for a while or have high personal wealth that can be placed as a down-payment or deposit on a property. In addition, many expatriates who live and work in Dubai have no idea how long they are likely to stay, which also makes the buying of a property (or home) less attractive than having the flexibility that renting provides. 5. Demand Sometimes there is no better justification for an investment decision than understanding simple economics, and specifically supply and demand. For the reasons highlighted above, Dubai is primed to grow considerably over the next few years as the population increases and Dubai continues its next phase of development. Dubai’s population by 2020 is expected to be close to 3.3 million people. That represents an increase of over 40% from today’s figure. While this seems high, this rate of increase is not dissimilar over the previous period of time, which is approximately 5% year on year. There is expected to be a huge increase of new residential accommodation to help match the growth in population, but we suspect that there will certainly be a period of time where demand is much higher than supply. It’s not easy to house an additional 1 million people – no matter which city of the world you are in and during this time, both rental prices and purchase prices for both residential and commercial property will undoubtedly increase. Source- primeplaces.com For further assistance related to Investment based queries in Dubai &India, please visit: http://www.pursueasiaconnexio.com/#

Why invest in Dubai: Property returns beat London, New York

Capital appreciation has been one of the prime reasons for global investors to buy property in Dubai and now a report from an international real estate consultancy ratifies their decision. A price comparison of the last five years (2010-2014) for global cities by Knight Frank, the UK-based consultancy, reveals that Dubai outshines London, New York, Hong Kong and Singapore. ‘The Hub Report 2015’ states prime home prices in Dubai saw an uplift of 59 per cent over the five years to end-2014 – a better performance than London (52 per cent), New York (47 per cent), Hong Kong (31 per cent), Paris (18 per cent), Singapore (7 per cent) and Sydney (2 per cent). Since early this year, experts have predicted prices to soften, experiencing a decline of 5 to 10 per cent. Rents have, however, remained high, offering a rental yield of between seven to eight per cent. The report said prime home prices fell by 4.5 per cent the second quarter 2015, but the decline was smaller compared to the mainstream segment’s 12.2 per cent fall. “Also, the new residential supply pipeline for the prime segment is not significant, suggesting that prices over the next 12-18 months should maintain a greater degree of resilience,” it added. Oversupply fears have been quashed by developers in the emirate, with HSBC Global Research also stating earlier that Dubai may see supply of 90,000 new units by 2018, but the market will absorb fairly easily all the supply even if the population grows less than five per cent per year. Safe location The report emphasized that Dubai remains one of the safest locations in the world, with excellent connectivity, strong economic prospects, a low tax regime and a stable political system – combined, these factors will undoubtedly play an important role in paving the way for its success as a global hub. “Admittedly, the sector has faced some headwinds over the past 12-18 months, however, the wealthy continue to be attracted to Dubai due to the fact that it remains one of the safest locations in the world, with excellent connectivity, strong economic prospects, a low tax regime, and strong lifestyle factors,” Khawar Khan, Research Manager at Knight Frank Middle East, in a press statement. Moody’s Investors Service, a global ratings agency, has said that government spending on infrastructure and encouraging foreign investments in various sectors will support the real estate market over the next five years. Economy growing Knight Frank further adds that as per the forecast from the International Monetary Fund the UAE’s economy will outperform the likes of the UK, US, Germany, Hong Kong and Singapore over 2015-2020. This, alongside the fact that the federation is among the easiest places to do business globally, should help to extend Dubai’s lead as a financial and business services hub in the Middle East. “All else equal, this suggests that tenant demand for good quality, Grade A office space will remain healthy in the short to medium-term,” it added. As to the industrial property sector, the consultancy said strong growth over the past decade in manufacturing and exports have been important drivers of demand for logistics facilities in and around Dubai. A number of reasons have supported this, including the excellent quality of the UAE’s transport infrastructure and the emirate’s strategic location between Europe, Africa and the Far East, The Hub Report said. Holiday destination Dubai continues to make strides as a tourist destination and an air travel hub with visitors to the emirate staying longer to enjoy the city’s attractions, with the average length of stay rising from 2.6 nights in 2004 to 3.8 nights in 2014. Moreover, Dubai International overtook London Heathrow in 2014 to become the world’s top airport for international passenger traffic given. James Lewis, Head of Knight Frank Middle East, added: ‘‘Unsurprisingly the impact on real estate has been positive, with higher levels of occupier demand being generated across the office, industrial and hospitality sectors, respectively. “Moreover the emirate has established itself as a safe, family-friendly and low tax environment – which combined with its connectivity to other global centres – has been attracting the world’s growing population of high-net-worth individuals. Naturally then, demand for luxury residential property has been gathering momentum.” Source- emirates247.com For further assistance related to Investment based queries in Dubai &India, please visit: http://www.pursueasiaconnexio.com/#

A Guide to Sustainable Investing

It’s more than just following your conscience. Here are some tips and pitfalls. What are you actually getting when you put your money into a sustainable investment? And how do you know the mutual fund or ETF with the “sustainable” label fulfills its promise? Investments marketed as sustainable—meaning they focus on companies that incorporate environmental and social corporate-governance practices into long-term corporate strategies—are experiencing explosive growth. Wall Street has jumped in with sustainable-investing divisions that create products for key demographics, like millennial, who are eager to align their values with their investments. As of July 2015, assets invested in stock exchange-traded funds tracking MSCI Environmental, Social and Governance (ESG) indexes had grown nearly 30% to $1.8 billion since the start of the year. Since December 2013, assets have more than doubled, with 22 new ESG ETFs tracking MSCI indexes. In addition, MSCI has seen a huge increase in ESG indexes to more than 150 today, up from 25 in 2010. But the investing style isn’t always easy to practice, especially for an individual investor choosing what fund to buy on his or her own. Some claims and promises are too good to be true. And even people within the sustainable business can’t agree on what is sustainable and what isn’t. Matter of interpretation The main issue is the lack of uniform information for both individual and institutional investors, meaning interpretation of the word “sustainable” varies depending on who is using it. That can cloud investor decisions when it comes time to dedicate money to a specific fund. Jean Rogers, chief executive and founder of the nonprofit Sustainability Accounting Standards Board, is trying to develop uniform standards for about 80 industries across 10 sectors. She says the current pool of data around sustainability relies too much on voluntary corporate disclosures, such as annual sustainability reports and company questionnaires put together by institutional investors—many of which ask different questions. “Individual investors are quite challenged to obtain this type of information in a way that is easily available and informs investment decisions—either specific stock selections or products to manage or fund your 401(k),” says Ms. Rogers. “We need better investible products,” she adds. Ms. Rogers’s board includes former New York City Mayor Michael Bloomberg and former Securities and Exchange Commission Chairwoman Mary Schapiro. There are several popular funds available for investors who want to leave all the decisions to experts. One is Pax World Global Environmental Markets Fund (PGRNX). David Richardson, managing director at Impax Asset Management, which sub advises the fund, says his firm has helped create basic guideposts for sustainable investing during its 17 years in operation. The firm’s strategy first focused on excluding sectors like alcohol, tobacco and firearms. But that thesis has evolved. “If you’re going to have sustainable economic growth, you have to address core fundamentals of the economy,” Mr. Richardson says: “energy, water, resources themselves, and food and agriculture.” A company needs to go beyond efficient water use; it needs to make sustainable-water policies part of its overall operation, for instance, by not building factories where water supplies are under pressure. Sustainable investing “is harder than it looks,” he says. “People need to leave it to experts because we’re charged with figuring this out with more granularities.” Enter the robo advisers? Technology may change that. Startups are aiming to make the automated money-management platforms known as robo advisers a central part of sustainable investing. Some online robo-adviser platforms, marketing themselves to millennial in particular, will pick out investments based on users’ answers about investment preferences, and then put a logarithm to work assembling a “sustainable” portfolio that could include stocks and funds. Such features, however, rely on the same cloudy data that Ms. Rogers and others in the sustainable-investing business are hoping to clarify. And as with any other investment, consumers should be aware of products that seem easy and too good to be true. “You can be indexed, or look for funds that are doing the work for you, or you can do it yourself and do a lot of work reading reports and validating data,” she says. “It is just that: It’s a lot of work if you’re an individual investor and want sustainable investing.” So how does one create a “sustainable” portfolio? Chat Reynders, chairman and chief executive of Boston-based Reynders, McVeigh Capital Management, suggests investors outline their values and see where they best align with trusted firms like Vanguard Group that have a wide portfolio of liquid indexed products. As with any other investment thesis, though, the key is due diligence and effort. “The danger in looking at a huge listing of indexes is that you may end up in less liquid ETFs or funds that seem great on their face but may have fundamental problems,” says Mr. Reynders, whose Boston-based firm creates what it calls “socially geared” portfolios. There is also the GIIN, or Global Impact Investing Network, which has been leading an effort to collect information about sustainable-investment strategies. The nonprofit’s website includes a clearinghouse of research and strategies related to sustainable investing. Wall Street gears up Major investment firms like Morgan Stanley and Black Rock Inc. See the opportunity. “Clients are really starting to think differently about their portfolios,” says Audrey Choi, chief executive of Morgan Stanley’s Institute for Sustainable Investing. She says a Morgan Stanley survey found that one out of six dollars under professional management is earmarked as sustainable, up from one out of nine in 2012. That increase comes as investors begin to see the benefits of sustainable investing, not just in how a company operates but also in what its stock returns to investors. “ESG factors are not extra financial factors,” Ms. Choi says. “They are factors that can directly affect the financial outcome of an investment.” She says much of her work focuses on showing people that sustainable investments tend to be less volatile and perform better than their traditional cousins. Source-wsj.com For further assistance related to Investment related queries in India, please visit: http://www.pursueasiaconnexio.com/#

India Business Opportunities

Driven by a growth rate of over 8% in 2010 and a 350 million strong middle-class with increasing purchasing power, the Indian market today is reshaping the world’s economy. India’s GDP crossed the trillion dollar mark in 2007 and is currently in 4th position (PPP) after US, China and Japan. Investment in almost every sector (Education, Food, Energy, Health Care and Retail) of the Indian economy has a promise of high returns that has caught the attention of investors and businesses across the world. Considering that restaurants keep you waiting, malls are packed, movie theatres are full, and airlines and hotels are over-booked showcase the increasing appetite of the Indian consumer. As an example, recognizing that Indian youths strongly favor branded clothes, Levis introduced a special brand ‘Spykar’ for India that is a runaway success. So far only Multi National Companies (MNCs) with their vast resources, know-how and the right connections have been the major beneficiaries of this phenomenal growth in India. Small and Medium Enterprises (SMEs) and Entrepreneurs are just becoming aware of the growth story of India. A simple analysis, taking into account the increasing population (See side box), growing consumption and the shrinking agricultural land, shows that there is a very lucrative market for US companies with products or technologies in the following areas: Food & Beverages: food processing, food packaging, food warehouse and transport, health drinks, etc. Home based: home décor products, kitchenware essentials, bed and bath, etc. Healthcare: diagnostics and testing, medical equipment, health supplements, clean air and water products, etc. Education: medical/nursing, ‘train the teacher’ programs, automotive mechanics, medical technicians, advanced courses in the upcoming fields of genetics and nanotechnologies. For human resource and skill requirements in the healthcare services industry, your can download a full report by National Skill Development Corporation of India at entryindia.com/files/Healthcare/healthcare.pdf Consultancy Services: engineering, business development, product development, security analysis, etc. Infrastructure: waste management, solar and wind technologies, temperature controlled warehouses, air and noise pollution control technologies, towing trucks, and automated parking lot equipment. Similar business prospects abound in other sectors such as home land security, media & entertainment, hotel/motel, financial investment services, etc. One of the business formats that is rapidly gaining acceptance is "Franchising" which is growing at a rate of 30% annually. While legal infrastructure and ecosystem are in place in India, one must do a thorough research, and due diligence of the potential Franchisee and create binding agreements covering all important aspects of the Franchising before making any investments. One must also understand business norms of India and seek professional help in navigating the paper trail, IP protection, and Tax implications etc. before undertaking partnership agreements with the Franchisee. Top sectors with franchising opportunities are Education and Healthcare due to a huge mismatch between supply and demand now and in the coming years. You may want to take advantage of the fact that US Commercial Service (Dept. of Commerce) regularly takes Trade Missions of US Franchisors to India. Another popular model is Public Private Partnership (PPP) with the Government of India through a ‘tender’ process. In the Infrastructure sector, for example, India is expected to invest $1.2 trillion in revamping or upgrading its ports, roads, bridges, energy plants, etc. Again the US Commerce Service can be instrumental in making the opportunities in this area available to US companies in a timely fashion and help with responding to the RFPs and with the required paperwork. All of the above present a historic opportunity for the SMEs and Entrepreneurs in the US to expand beyond borders to India. US companies with the right know-how have almost unfair advantage for success for several reasons: President Obama’s National Export Initiative has set a target of doubling US exports to $2 trillion by 2015. To meet this objective, the US Administration has initiated huge incentives to support US exports. Commerce Dept.'s International Trade Administration (ITA) budget is raised by 20 percent to $534 million and 300 international trade specialists are added to help US companies export US goods and services. Indians have a very favorable view (76%) of the US according to a Global Attitudes Survey. Indian Government officials make regular visits to the US to meet with the industry experts and to promote business and trade opportunities. The government of India offers multiple incentives to US companies doing business in India. Government incentives include duty free import of capital goods and raw materials, reimbursements of Central Sales Tax, Tax holiday for specified period, 100 per cent repatriation of profits for subcontracting facilities and more. For further assistance related to Investment related queries in India ,please visit : http://www.pursueasiaconnexio.com/#

How to Make a Foreign Direct Investment in India

India, among the European investors, is believed to be a good investment despite political uncertainty, bureaucratic hassles, shortages of power and infrastructural deficiencies. India presents a vast potential for overseas investment and is actively encouraging the entrance of foreign players into the market. No company, of any size, aspiring to be a global player can, for long ignores this country which is expected to become one of the top three emerging economies. ~ Ministry of Finance, Government of India. If you're keen to invest in India, it is helpful to know how and where to get started. It is filled with promise for the person who learns what to do and is prepared to take calculated risks. • Engage a good corporate lawyer or a chartered accountant having exposure of providing India entry services. It is better to have somebody with a prior reference. • Speak to possibly some other companies who have set up business in India earlier. • Decide structure of your India entry. It could be a JV with an Indian partner or a 100% Indian subsidiary. Except for certain sectors a foreigner can set up a 100% subsidiary in India with full repatriation of capital and dividend facility. • Glance through the Reserve bank of India's website (www.rbi.org.in) for their latest master circular on foreign direct investment policy and also Ministry of finance website for latest Industry policy and procedure manual. • While planning the Indian venture the priority should be making the Indian venture successful than tax structures. Therefore, it will be wiser to also consult a good tax lawyer or tax consultant in India. • Identity a good strategic partner in India. This will help in a long way in success of venture in India. Do a background check on local partner by due diligence with their customers, trade, employees, bankers, suppliers etc. • Identity a good market and sector of investments. India offers a great opportunity for investments and/or business on account of its strong democracy system, strong financial system, wide and potential market within India, English speaking, strong work-force and education system, growing urban class, strong information technology infrastructure, and investment favorable policy of the Government of India.
Source: wikihow
For further assistance related to Investment related queries in India , please visit : http://www.pursueasiaconnexio.com/#

Understanding the Rise of Manufacturing in India

When many executives think about manufacturing, China is the first country that comes to mind. But there are other players grabbing a bit of that spotlight — like India. Despite the conventional wisdom that says India’s place in the global economy revolves around digital bits and services rather than material atoms, the country is starting to attract more attention for its manufacturing potential for a number of reasons: India is the third-largest economy in purchasing power parity after the U.S. and China, it has a large population of engineers and factory workers, its intellectual property is widely respected, and it is easy to find English-speaking managers there. While Narendra Modi’s “Make In India ” initiative to promote manufacturing in India was mocked by some, North American executives are increasingly looking to expand their manufacturing supply chains beyond China. To decide if India is a good candidate for your operations, it’s important to understand the opportunities of doing business in the country — as well as the challenges. American success stories in India While American companies are only starting to explore India’s potential for manufacturing, we’re already seeing a few examples of how these efforts can be successful. For example, Chicago-based Abbott, which operates in 150 countries and owns top brands such as Similac infant formula, recently built a manufacturing facility in Jhagadia, Gujarat, in order to compete in India’s large growing nutrition market. In 2014, its 14,000 employees in India generated $1.09 billion in sales. This is largely because it manufactures products that reflect the local environment (to deal with spicy Indian food, it sells the antacid Digene), and are widely used there (to manage aches and pains, most Indians are prescribed Abbott’s Brufen when they want ibuprofen). It also adapts some its products to meet local expectations — for example, the plant caters to Indian mothers by manufacturing a version of the popular kids’ nutritional supplement PediaSure that is flavored with saffron and almonds. India was one of the first expansion markets for Abbott, after Canada and the U.K, and today it’s the company’s third largest market globally — all six of the company’s business units have a presence in the country. “Last year, we signaled that India is a key manufacturing destination for us with a $75 million investment,” Abbott Vice President Bhasker Iyer told us. “It is one of the fastest growing markets globally — with a young population, strong macroeconomic indicators, a huge consumption story, and a politically stable government working to accelerate reforms. For a healthcare company, the reasons to be part of this vibrant country are even more compelling — it’s an opportunity to serve the unmet healthcare needs of a 1.2 billion population.” While Abbott does not currently export its products from India, the U.S. company Cummins does manufacture its engines, generators, and turbochargers there to export across the globe. India is hugely important to the company’s revenue stream, and Cummins India is only one of eight operations they have in the country. According to its latest investor presentation, Cummins India exports grew at 14% annually over the last five years and now constitute 40% of sales. The company has 20 manufacturing plants in India, compared to Abbott’s three, and one-sixth of Cummins’ 54,000 worldwide employees currently work there. Another company planning to boost exports by manufacturing in India is GE. Among the 10 factories it has in the country, its new factory in the city of Pune serves as a global supply source for a number of its diverse businesses, from aviation and turbo machinery to wind turbines and diesel locomotives. “In the future, manufacturing will be far more decentralized. But decentralization poses a challenge to the concept of economies of scale,” said Banmali Agrawala, President for GE South Asia. The Pune factory helps solve this challenge. The company plans to send half of the output to GE’s global factories and the other half to the domestic market in India. And it was recently announced that CEO Jeff Immelt is headed to India again this month, in part to assert support for manufacturing in the country. While our success stories have focused on large companies, opportunities for manufacturing in India are open to smaller entities, even ambitious startups. Former Texas Instruments engineer Lou Hutter, now CEO of the startup Cricket Semiconductor, is raising $1B dollars (largely from investors of Indian origin) to build India’s first analog chip fabrication (“fab”) facility. Hutter and his partners hope to be located in the middle-sized city of Indore in Madhya Pradesh, where the Chief Minister has offered free land and a stable supply of water and electricity. Most fabs produce digital microchips that power modern electronics. But these digital devices must also interface with the analog real world in useful ways. The analog fab is much more aligned with India’s strength in automotive and industrial sectors, according to Hutter. Overcoming challenges While these companies show the potential of manufacturing in India, they can also illustrate the challenges western companies face when doing business in India. For example, Cummins’ biggest obstacle was navigating a difficult land acquisition process and complex government regulations. Land ownership is often opaque, and re-zoning from agricultural to industrial use has been fraught with peril and delays. The first step to overcoming these challenges is to understand India as a collection of states, rather than one monolithic entity. It’s the states that are working to help companies establish their manufacturing facilities, and four have made significant recent advances. For example, the state of Madhya Pradesh has implemented a single online registration for business licenses to replace the complicated system businesses previously had to go through: 61 different registers operating under 13 separate federal labor laws. The state has also systematized the inspection process. Before, a barrage of inspectors would show up at companies without notice and slow down production; now the state has implemented process where inspectors come once every five years, and have to give advance notice. Meeting these challenges also requires a ground-up evaluation of your company’s needs in order to match them to India’s opportunities and current capabilities. If you don’t have in-house knowledge or resources, you may wish to consult state-based officials or engage a third party advisor. Another challenge is that historically, India has regulated companies’ ability to fire factory workers, making it especially difficult for larger companies. While this was aimed at protecting jobs, one unintended consequence was that many factories stayed small to avoid increased regulatory burden and many others try to show their workers as contract labor. Western companies also don’t have to build their own manufacturing facilities; they can rely on Indian factories. While advising American corporate clients, one of us (Bagla) found that Indian suppliers can be globally competitive in manufacturing items as diverse as manhole covers, automotive components, and even personal care cosmetics, which shows how India’s manufacturing sector is advancing beyond bits. The takeaway Just two decades ago, most Western executives thought of Ireland or Central America as the place to outsource software and business processes; today, we believe that India’s knowledge worker base rivals those two destinations combined. We don’t expect Indian manufacturing to go head to head with factories in China, Japan, the United States, or Germany any time soon. But top executives who wish to diversify their supply chains should no longer only consider India as a supplier of software and call center services. Manufacturing is the next frontier in India, and companies such as Abbott, Cummins, and GE have already proven that the countries resources hold tremendous potential. We believe that western CEOs should follow Jeff Immelt’s lead and begin including India as part of their global supply chain. While there is no single formulaic answer to manufacturing success in India, patience and a trusted local partner or advisor to guide western executives’ efforts are necessary — as well as an understanding of the challenges. And from India’s perspective, manufacturing is probably the only way to lift half a billion more of its population out of poverty. If Prime Minister Modi is able to inspire those around him to unlock India’s land and labor for manufacturing, domestic and global corporations will accelerate this transformation. Source- hbr.org
For further asistance please feel free to contact- http://www.pursueasiaconnexio.com/