That Chrysler Automobiles has come up with a plan to manufacture a range of C-segment Jeep brand premium sports utility vehicles in India and export these SUVs to countries such as Australia, South Africa, and the United Kingdom. This shall bring in an investment of about USD 230-380 Million in the country.

Google is re-committing to its Android One project, which hopes to enable the creation and sale of Android phones in India, priced at under $50. Android One is “at the heart of a massive investment push by the technology group to increase internet access and develop new products suitable for India’s potentially vast internet market.”

The above examples all are just a drop in the sea. With the Make in India initiative a lot of brands and companies are choosing/going to choose India for its expansion and growth. 

Contract manufacturing involves outsourcing the production of goods to third-party manufacturers, often referred to as contract manufacturers or production partners. 
This type of work enables companies to leverage the expertise, infrastructure, and cost advantages offered by specialised manufacturers, which helps them to streamline their operation, make it cost effective and leverage the available resources. 

There are several attractive reasons why India is fast becoming the ideal destination for contract manufacturing:

1. Skilled Labour:
   With a large pool of skilled engineers, technicians, and workers, India has a robust talent pool capable of handling a diverse range of manufacturing processes. This skilled workforce, coupled with ongoing investments and skill development, makes sure that Indian contract manufacturers can meet the expected standards of global clients.

2. Cost Advantage:
   India offers a competitive cost advantage compared to other manufacturing hubs, like China. Factors such as cheaper labour costs, favourable exchange rates, and government incentives make India an attractive option for companies seeking to optimise production costs without compromising on quality.

3. High Infrastructure: 
   The Indian government has prioritised infrastructure development as a key factor for economic growth. Initiatives such as the construction of industrial parks, special economic zones (SEZs), and dedicated manufacturing corridors have enhanced the country’s logistical capabilities and connectivity.

4. Rules and Regulations in Place:
   In recent years, India has implemented several regulatory reforms aimed at improving the ease of doing business and fostering a friendly environment for manufacturing investments. Simplified licensing procedures, tax incentives, and initiatives such as the Goods and Services Tax (GST) have streamlined processes.
5.  Geopolitical Positioning: India’s stable political environment, coupled with its strategic location at the crossroads of major international trade routes, makes it an attractive choice for companies looking to diversify their manufacturing footprint.
6.  Technology and Innovation: India’s vibrant ecosystem of technology and innovation is another plus factor driving the growth of contract manufacturing. With an increased startup culture, a strong focus on research and development, and investments in emerging technologies such as automation, robotics, and artificial intelligence, India offers ample opportunities for collaboration and innovation in the manufacturing space.