Blog Premier Tech Chronos
MADE IN... INDIA
11 May 2017
For many years now, analysts have been keeping an eye on India’s economy. With its fast-growing population and inexpensive labor, this emerging country has earned its place as one of the fastest growing economies worldwide. Many, in fact, forecast that India will become the third-largest economy in the world by 2030, with the International Monetary Fund predicting that this may occur as early as 2019. Will these predictions prove true in the years to come? It’s not possible to know for certain, because there are so many factors that influence the country’s future. But one thing is clear, and that is that all eyes are on India. Let’s take a closer look at why this nation is such an attractive destination for investors, especially in the manufacturing sector.
A GROWING POPULATION
India already contains nearly 18% of the world’s population. Its residents in 2015 were estimated at more than 1.3 billion, second only to China. But given that China’s birth rate is less than .5% and India’s is 1.2%, it’s not surprising that the latter country is expected to be the most populated nation in the world by the end of 2025, when statisticians predict it will have a population of 1.53 billion. Not only do all these people represent potential customers, the fact that 65% of them are under 35 years of age means that a large, young workforce is available now and will be for many years to come.
THE MIDDLE CLASS
With that youthful demographic comes a rise in the number of working adults in each family and a corresponding increase in per capita consumption. This creates a growing middle class. Although the middle class in India is not easy to define, the Indian government confirms that it is rapidly getting bigger. Less than 30 years ago India was facing serious economic challenges, with less than 5% of its population considered to be middle class. While there’s still room for economic growth, specifically in rural areas, the percentage of the population considered to have middle class spending power is now nearly 25%.
Education is another key driver of India’s economic strength. Since 2000, the country has worked to raise its literacy rate. This focus on creating a better educated workforce should promote the growth of the middle class. Increasing literacy, coupled with a culture that values and encourages higher education in engineering, ensures not only a large workforce but one that is highly skilled. With large investments made recently in infrastructure and industrial production, more skilled workers have joined major companies and boosted the ability of Indian enterprise to compete on a global stage.
THE INDUSTRIAL SECTOR
Organizers of India Pack, one of the largest international packaging exhibitions, report that, “The Indian food processing market is one of the largest in the world in terms of production, consumption and growth prospects.” Naturally, this volume of production and consumption creates a similarly large demand for industrial equipment. And, with a quickly growing middle class, demand for consumer goods is increasing accordingly. So it should come as no surprise that the processed food industry in India is growing at a rate of 14% annually. This hunger for processed food is driving Indian food manufacturers to reach higher production rates, and to achieve those rates efficiently, companies are turning to automation. With an eye toward exporting food globally, Indian manufacturers understand that automation is now a basic necessity if they hope to beat the competition.
Premier Tech Chronos office in Delhi
THE PACKAGING SECTOR
India’s flexible packaging sector is developing more rapidly than its rigid sector, which is currently in its formative stage. However, “The packaging industry is poised to grow rapidly, led by the increasing use of innovative packaging equipment and the rising of the flexible packaging market,” predicts the Packaging Industry Association of India. Home of the most extreme differences between rich and poor, India has some potential challenges to overcome en route to becoming the world’s leading economy. Nonetheless, this second-most populous country in the world is believed to have huge potential for economic success.
With one of every six people on Earth living in India and an estimated 51 new Indians born every minute, an increasingly well-educated workforce is available now and for years to come, and at a cost that compares favorably to that of other countries. Still more savings will accrue to foreign companies that establish operations in India because the corporate tax rate for companies registered there will decrease in phases over the next four years, starting FY16–17. Bottom line? India offers opportunity for profitable investment in multiple manufacturing sectors, and with Premier Tech Chronos already on-site and ready to set up your manufacturing operation, your company’s increased revenue is ready to be made … in India.
OUR PRESENCE IN INDIA
Premier Tech Chronos is already established in India at this exciting time in the country’s transformation into a global power, ready to work with India’s large and growing workforce to meet the needs of companies in a wide range of markets. As the country continues to grow, our team will be there to fill the demand for manufacturing. Indians are reshaping the way their country is developing. There are more manufacturing companies in several sectors that are targeting global markets and becoming increasingly competitive.
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