It is now known throughout the world that due to the natural rule of industrialization & wealth creation labor costs are rising in China. The talk of alternative manufacturing locations is not something that can be ignored any longer. Of course some operations are returning to the US and Europe, but most of them are staying in Asia. India is rapidly becoming that Asian country, which is attracting more business due to this. In India, there are labor and raw material advantages, as well as rapidly growing infrastructure. The list doesn’t end there- other perks are there as well in India. For Sara International, a jute bag company & manufacturer exporter of environmentally friendly jute, cotton, juco, slippers, etc, which produces on a global scale & are considering exploring the possibilities of how India can add value to the organization, here are a few advantages which can be extremely useful.
Raw Material Control
Factories in India are sticklers about testing, retesting, as well as, certifying that the raw materials they receive are exactly as they should be. For example, one have a metals project. Then one should definitely consider adding India to the global supply chain, as various metals are native to this region. Such strategic sourcing will definitely pay off in the long run.
India has lots of engineers & laborers. To add to this many are bilingual. An impressive 225 million Indian residents speak English, as of November 2014. Additionally, a labor force of 500 million+ skilled and unskilled workers certainly are a boon for manufacturers. What’s more? A whopping 12 million people is entering India’s work force each year.
Labor Cost Advantage
India definitely serves as a worthwhile alternative to China because of their huge labor pool, as well as, lower cost of labor. As of November 2014, the hourly Indian manufacturing labor cost averaged around 92 cents. In China it is $3.52. While India as of now lacks the advanced infrastructure that China has to offer, Indian manufacturing is completely viable, as well as, thriving now.