In the recent few years, India has been advancing in the manufacturing sector at a rapid pace, thanks to several government’s initiative for the field.
Now, India is all set to become one of the world’s major manufacturing hub, according to the latest report published by the Asia-based Hinrich foundation.
With the government efforts to raise the sector manufacturing capabilities, the main focus is aimed to develop smartphones and other digital hardware components in the country itself. Also, by promoting startups with different policies and easing their path with several government aids, the government is set on transforming the country into a technology export hub in near future.
Backing this up, let’s talk about some of the main factors that are in India’s favor:
Amidst the tension between the two countries, India is garnering huge attention and benefits from US because of this spat.
According to the report, US President Joe Biden has signed an executive order to create “China-Free” supply chain in strategic industries like bio-pharmaceutical, semiconductor, rare earths and batteries industry.
And with this, several other major countries are following suit as they search for another hub to move their operations. Major Tech giants of US have started moving their business from China’s territory to other country’s base for better ventures.
Being a member of Quadrilateral Security Dialogue (Quad), India has gained a foothold on many issues like recent vaccine diplomacy, grouped with other members like Japan, US and Australia.
This membership also opens many venues for India to be a part of like the most recent move of stockpiling billions of surplus doses of Covid-19 vaccinations for further distribution as a way to purge the growing vaccine diplomacy campaign led by China.
Least Expensive Internet Rates
India offers the least expensive internet rates around the world with its huge population still entering the digital age. Due to which, a great deal of subscribers has entered the mainstream and have access to all internet related services.
By 2020, almost 50 per cent of the population had access to internet compared to 10 percent users till 2010.
Tech Sector Investments
According to the Hinrich report, US, European Union (EU), Japan and Taiwan are among the major investors in India’s technology sector.
The report stated that as many of the world’s technology companies already are in India’s market, they also are the potential investors to boost India’s production sector.
The government’s goal is to attract FDI in the country by easing the business policies to absorb investments and technical intelligence from these firms.
Government is all set to complete its target of producing one billion smartphones by the end of 2025.
As the report states that China’s low-cost smartphone brand and lucrative deals on them is what makes China the largest supplier of smartphone in the country. But with India’s push towards setting manufacturing plants in the country itself will help the country to compete with Chinese brands in near future.
Government’s dexterity was seen and tested by the world with the way country implemented world’s largest biometric ID system, that is Aadhar, Hinrich noted.
Regulated by the Unique Identification Authority of India (UIDAI), Aadhar card number grants various benefits for users like direct transfer of benefits or financial aid plans set by the government, thus connecting India’s mainstream people to the digital world.
The report also commented on the fact that the country is on the verge of a huge financial boom in the upcoming years with various government policy changes to ease business doing and FDI invested in the tech sector by global key companies.
According to McKinsey, fintech-driven services in India could be worth $170 billion by the end of 2025.
Thus, proving the fact further that India is ready to become a major technology sector in the upcoming years.