If you’ve considered outsourcing manufacturing to India, you’re not alone. In fact, you’re in good company, as some of the world’s top brands are discovering the advantages of manufacturing in India.
Once associated with overcrowding and poverty, India is now predicted to become the world’s third-largest economy by 2030. Manufacturing is a key driver of that growth, and brands looking to bring new products to market could capitalize on it.
Made in China vs Made In India: Advantages of Manufacturing in India
With China still the undisputed leader in global manufacturing, why are so many brands opting to shift their production to India?
- Ease of communication: India has one of the largest English-speaking populations in the world.
- Business-friendly government: Under the Make in India program, the government has instituted many reforms to make it easier for businesses to get up and running.
- Low labor costs: The average daily cost of a factory worker in India is significantly lower than in China.
- Stability: With more than one billion consumers and a burgeoning middle class, India’s domestic economy is stable, and the government generally has the support of the people.
There’s also the simple matter of distance. India is closer to many Western markets than China and other Far Eastern nations, cutting delivery timescales and costs. However, China has well-developed transport and supply chain connections, which could make logistics more cost-effective.
Quick Guide: India vs China manufacturing key differences:
- India has lower wages than China
- Potentially shorter timescales for logistics in India
- Both countries have a skilled and energized workforce
- China has a more developed manufacturing infrastructure
- There are more manufacturing experts and facilities in China with extensive experience, as India is a relatively new manufacturing hub
- China leads in terms of consistent quality for specialist products like consumer electronics
The key takeaway: What you want to produce and how fast or cheaply you want to produce it can massively impact where you choose to source your manufacturing partners.
Made in India Manufacturing Success Stories
Which brands are already successfully manufacturing in India?
- General Electric (GE): GE has a huge engineering and research center in Bangalore, plus a manufacturing hub in Pune for its aerospace division. Parts manufactured here are sold to aviation companies around the world.
- Siemens: Technology firm Siemens already has 25 factories in India and plans to invest more into manufacturing in India.
- Toshiba: This company has a huge presence in India, and recently announced major investment into its Transmission and Distribution Systems sector in Hyderabad.
Other instantly recognizable names investing in manufacturing in India include Airbus, Apple, and Samsung.
The Advantages of a Partner for Contract Manufacturing in India
Outsourcing to India or any new region can be daunting and fraught with obstacles unless you have the right partnership to support you. Contract manufacturing specialists can:
- Overcome language and cultural barriers
- Leverage existing relationships and partnerships
- Source exactly the right facilities to produce your goods
- Provide end-to-end support to ensure cost-effective design and production, utilizing readily available materials and components that support design specifications
Manufacturing outsourcing in India can be one part of a diversified production strategy or the whole plan, depending on your product’s needs. Here at Genimex, we work with expert manufacturing facilities in India, China, and Vietnam, empowering brands and startups to bring products to life at speed, at scale, and at exacting levels of quality. Get started with our team and discover end-to-end support from design to prototyping to production.
FAQs
Is manufacturing outsourcing to India smarter than remaining in China?
It depends on your needs and the scope of your product design. When it comes to China vs India manufacturing differences, you need to consider the fact that China has a longstanding manufacturing infrastructure and a reputation for meeting exacting quality standards. India is edging ahead in terms of value and efficiency, with a rapidly expanding infrastructure. Work with your contract manufacturing partner to discover which country is the best choice for bringing your products to market, or if you should diversify your manufacturing locations.
What are the benefits of contract manufacturing in India?
Brands and startups may opt to manufacture in India thanks to low labor costs, simplified logistics, and a rapidly expanding manufacturing sector. Major investments from well-established brands make the country more appealing to other firms needing manufacturing partners.
Will it cost me less to manufacture my product in India?
Figuring out the overall cost of manufacturing a new product in India, or shifting production from another country, e.g., China, can be complex. You have to consider logistics, labor, and material costs, as well as the complexities of working with an entirely new market. Genimex, a trusted turnkey manufacturing solutions provider, can help you figure out the costs and benefits of manufacturing in India, so you can choose the right path.
