India: Investment Destination for Global Manufacturers

India: Investment Destination for Global Manufacturers

  • April 2016 •
  • 11 pages •
  • Report ID: 3773498 •
  • Format: PDF
Reasons to Invest in India

Favourable Demographics

According to World bank, India’s population will increase to billion by 2020, up from billion in 2015 Nearly % ( million) will be of working age.
With million in the age group of 10-24 years, India has the world’s largest youth population.
Highest university graduates by 2020.
University educated workforce expected to rise from million to million by 2020.

Growth Story

According to the IMF, India to grow at an average of % during 2016-2020, as compared to average % growth in China.
Growth acceleration to be driven by business-oriented reforms and improved investor sentiment
Growth to benefit from recent policy reforms, a consequent pick-up in investment, and lower oil prices.
FDI in India expected to rise by 5% in 2016.
Foreign investment limits raised in several sectors including private banks, defense, and non-news entertainment media.

Consumption Growth Story

Consumption accounts for around % of the GDP of India.
Expanding middle class, rising incomes, and increasing spending power along with a large youth population and rapid urbanization will continue to boost consumption.
According to Ernst & Young, India’s middle class, which is about million or % of the population, will reach million by 2020.
India will add more people than China to the global middle class by 2030 creating a huge market for companies.

Manufacturing Hub

Manufacturing contribution to India’s GDP is around % of GDP.
Average manufacturing labor cost per hour in India is around $0. 92 as compared to $ (2014) in China, according to a study by Boston Consulting group.
China doesn't have enough workers for many low value-added industries.
According to India’s National Manufacturing Competitiveness Council, an estimated 100 million jobs will move out of China over the next few years in labor-intensive sectors. Given its comparative advantages, India has an opportunity to become a global manufacturing hub.