India is slated to become the world's second-most competitive destination for manufacturing operations, after China, within five years, according to a new study by Deloitte Touche Tohmatsu and the US Council on Competitiveness.
“India is rated this high mainly because of its huge talent pool, its strong domestic demand and and the incredible geographic position,” the paper quoted Deloitte global leader manufacturing Timothy P Hanley as saying.
Hanley added that the expertise India has in services can be replicated in manufacturing as well provided challenges like education and infrastructure development are addressed, the papers said.
India's manufacturing sector has made large strides over the past decade, despite continuing problems with electricity supply and transportation infrastructure, as well as strict labor laws. However, most of the growth has been driven by domestic consumption of items like automobiles, refrigerators and the like, in contrast to China.