India has been gaining prominence as a manufacturing hub for multinational companies as they are keen to expand their manufacturing footprint in Asia. Started by the Indian government in 2014, the Make in India campaign provided initial impetus to attract investment in the manufacturing sector. The program aims to increase the manufacturing sector’s Gross Domestic Product (GDP) contribution to 25% by 2022 from 16% in 2018.3The government’s thrust on the program has been yielding some positive results with multinational corporations such as Apple, Samsung, Lockheed Martin and Xiaomi setting up manufacturing bases in India. Apple, which has already been manufacturing iPhone components and older iPhone models in India, announced its intention to start building the newer iPhone XS and SR in India in 2019. The Samsung factory in Noida is one of its major facilities in the world and 30% of output is exported.
Growth in the manufacturing industry bodes well for industrial and warehousing sector as large manufacturing plants require a wider ecosystem comprising of suppliers and distributors. Oragadamin Chennai and Chakanin Pune are established manufacturing hubs in India and have been witnessing increasing demand for light assembly warehousing units.
- Colliers Research