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India – The Ideal Partner for Manufacturing Beyond China

Table of Contents

India is the world’s fastest-growing major economy and a rising star in the industrial and manufacturing landscape. The International Monetary Fund (IMF) World Economic Outlook, released in October each year, projects India’s economy to grow at 6.3% in 2023 and 6.1% in 2024, which would be the highest, globally (including China). Global supply chains, heavily dependent on China’s dominance in product sourcing, have seen significant stress over the previous four years from rising costs, geopolitical risks, and logistic constraints.

Today, company leaders who recognize the necessity for a resilient, diversified supply chain have rethought their reliance on China as the sole manufacturing powerhouse. When looking where else to turn, the global market has recognized that with its vast untapped potential, India presents a compelling “China + 1” opportunity for reliable, dynamic, and cost effective manufactured goods alternatives.


India’s Competitive Advantage

  • Cost Efficiency – While China’s labor costs are rising India boasts a young and highly skilled workforce with competitive wages. This advantage holds true across numerous sectors, from textiles and apparel to high-tech electronics and automotive components. ,
  • Market Access – Home to 1.4 billion people, India represents a burgeoning domestic market with unparalleled growth potential. By sourcing, fabricating, manufacturing, and assembling in India, companies gain immediate access to this vast industrial base and bypass trade barriers.
  • Infrastructure Development – India is heavily investing in infrastructure, with the government committing billions to modernizing ports, roads, and logistics networks. The Indian Ministry of Finance Annual Report 2023-24 highlights significant allocations for infrastructure development, including $67 billion for highways, $240 billion for railways, and $13 billion for ports. These investments into enhanced connectivity translates to smoother supply chains and reduced transportation costs to customers in North America.
  • Skilled Workforce – India boasts a robust education system churning out engineers, technicians, and software developers with expertise in cutting edge fields. This talent pool ensures access to the skilled workforce, critical for long term growth and reliability in today’s competitive industries.
  • Technological Advancements – India is rapidly embracing automation and digitalization, with initiatives like “Make in India” focusing on technological advancements in manufacturing. This commitment to innovation fosters a dynamic environment and opens doors to future proof partnerships.

Beyond Cost Savings: A Strategic Shift

Adding India to your manufacturing and assembly suppliers list isn’t just about saving money; it’s about building resilience & agility into your supply chain. By diversifying your supplier base, companies mitigate risks associated with political or economic instabilities in any single country. Additionally, India’s strategic location near China and Southeast Asia makes it ideal for serving multiple markets in the region.

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Source – Bloomberg

A Seamless Transition with Frigate

At Frigate, we have simplified the complexities of navigating a new manufacturing landscape. We provide comprehensive B2B services and materials for mechanical and electronic fabrication, making India a smooth transition for your “China + 1” strategy. Our expertise gives you advantages in,

  • Market Research and Supplier Identification – We help you find the right Manufacturing partners aligned with your specific needs and product lines, from raw materials to completed assemblies.
  • Quality Control and Compliance – Frigate is your On-Site Rep, ensuring your products meet your criteria and international standards through rigorous quality control measures and regulatory compliance support all before it is shipped.
  • Logistics and Supply Chain Management – We navigate the intricacies of Indian logistics and customs regulations to optimize your supply chain efficiency.
  • After-Sales Support – We provide ongoing support and guidance to ensure a seamless and successful manufacturing experience in India.

India is so much more than a low-cost alternative; it’s a strategic evolution for your business. By leveraging its unparalleled potential & partnering with Frigate’s expertise, you can unlock new markets, build resilient supply chains, & achieve sustainable growth in the years to come. Embrace the shift beyond the dragon and discover the vibrant future of manufacturing in India.

Contact Frigate today and let us guide you on your “China + 1” journey to success.

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