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When to make India a manufacturing base
India has lagged behind other developing nations as a manufacturing center, mainly because of infrastructure problems and government regulation.The obstacles are considerable, but some multinational companies, attracted by India’s low-cost skilled labor, have moved ahead anyway.Multinationals considering India as a manufacturing base should focus on skill-intensive industries to take advantage of the country’s abundant supply of well-qualified engineers.Companies that make the effort now to source and manufacture products in India may obtain first-mover advantages such as close relations with the best suppliers, access to the best talent, and government support.
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