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Trade With India – Indian Manufacturing Sector Has Hijacked The World Markets
By Mayur Dicosta
India’s power-packed manufacturing sector seems to be going great car s. Strong skills in product, process and capital marketing have apparently emerged as the dynamic driving factors. The country’s long manufacturing lineage and higher education system has also given a fillip to this sector, thereby cementing its stand on the global scale. It is no surprise that ‘Trade with India’ chant has been gathering momentum like never before, with single-point focus on the Indian manufacturing sector.


According to a UNIDO analysis, India figures among the top 12 producers of manufacturing value added services. The analysis reportedly appears in the International yearbook of Industrial Statistics 2009. In textiles, India wrapped up the fourth position after China, in case of electrical machinery and apparatus, India is ranked fifth. In the basic metal category, India’s ranks sixth, seventh in chemicals and chemical products, 10th in leather, refined petroleum products, leather products, and nuclear fuel; twelfth in motor vehicles and machinery and equipment. All these booming sectors have ensured that trade with India will invariably be a profitable preposition for any country.

Manufacturing sector contributes around 15 percent of GDP of the country

Growth Trends that’s encouraging foreign players to trade with India

Manufacturing sector has become a major confidence booster for the Indian economy as per major indicators Nomura’s Composite Leading Index (CLI), UBS’ Lead Economic Indicator (LEI) and ABN Amro’ Purchasing Managers’ Index (PMI).

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The sector has registered an upsurge at 55.3 for April 2009 from a low of 44 in December 2008 and 49.5 for March 2009, according to ABN Amro Purchase Managers’ Index (PMI), an indicator of manufacturing activity in the country based on a survey of 500 companies. The value of new projects announced in the second half of 2008-09 stood at US$ 13.2 billion.

Leather and its products, which is the 10th largest among the Indian manufacturing sector is also among the top ten export earners of the country. The glass manufacturing sector has reported a double-digit growth. Thanks, to its free industrial license policy. The Indian industry is presently dominated by 10 big players. Gujarat Glass and Associated Glass Industries and Hindusthan National Glass & Industries figure among the top ten. Glass exports account for 10 per cent of the total industry revenue.

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According to the latest survey conducted among manufacturers, in the current quarter, six of the 12 sectors may witness exponential growth. These sectors are textiles, metals and products, cement, machinery, FMCG and miscellaneous industries.

Special economic zones (SEZs) reported export growth of 33 per cent during the year to end-March 2009, over-riding the country’s overall

exports growth of just 4 per cent, according to the Commerce Department. Export billings from tax-free manufacturing hubs were worth US$ 18.16 billion last year.

India’s robust manufacturing sector has triggered number of Foreign Multinationals to Trade with India

• LG is chalking out a blueprint to make India its global manufacturing hub for its mobile handsets. The company plans to export mobile phones to Europe and the Commonwealth Independent States (CIS) from India.

• Luxury brands - Louis Vuitton and Frette are also heading towards India with the basic purpose of converting India into a manufacturing base for their products.

• SkodaAuto, is also making its way towards India. The company will start manufacturing cars in India by 2010. The cars will be then be exported to neighboring markets like Nepal, Sri Lanka, Burma and Bangladesh.

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Aircraft producer Airbus is looking at India as on the chief centers for design and development for it’s a 350 plane.

• Royal Philips Electronics, Europe’s biggest consumer electronics group, intends to make India a nodal point for developing and manufacturing products for global markets and assembling components across its core sectors like lifestyle, lighting and healthcare.

• Cryolor Asia Pacific, a wholly-owned subsidiary of France-based Cryolor SA, is planning to establish a facility to produce storage equipment for liquefied gases. The company has announced to invest US$ 8.9 million in the unit coming up at Melmaruvatur, 110 km from Chennai.

• Samsung will probably be investing US$ 100 million in its manufacturing plant near Chennai and make its centre point of action.

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Hyundai has transformed India into a global manufacturing and export hub, especially for its small cars. The i10 is being produced only in India and exported to the world over. India is Hyundai’s single-most largest base outside Korea.

• Suzuki too is planning to make India its manufacturing base for small cars. Ritz is manufactured only in India and exported to Europe.

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Why Trade with India will thrive in the future

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As per the study carried out by McKinsey Global Institute, India will be the largest consumer market in the world by 2025 from twelfth in 2005. The best reason to trade with India is its consumer’s purchasing power, which will reportedly quadruple and reach around US$ 1.5 trillion by 2025.

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There is good news for the manufacturing sector from the Investment Commission of India. According to the commission, the sector is estimated to receive US$ 180-billion over the next five years.
www.made-from-india.com has evolved itself as a trusty B2B. With a unequalled combining of understanding of applicatory requirements of Indian exporters, Suppliers and manufacturers. Get best Import-Export trade intelligence information. Also large database for buyers from all over the world as one place Made-from-India.com as it is an International trade sources. It is solid platform as B2B portal of Indian industrial resources.

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