The Comparison Of Top 5 Manufacturing Hubs By Impact On Indian Economy
India’s manufacturing sector is witnessing outstanding growth. Recently the ranking of India improved as it made a leap to 6th position in the list of world’s top ten manufacturers. With a growth like this, India can aim to take over China and emerge as a bigger global player. Let us take a look at India’s top 5 manufacturing hubs that are constantly adding positive numbers to the economic growth –
Baddi is well-known Pharma destination of India which has around 2120 factories and an annual turnover of 60,000 crores. The place is closely located from Chandigarh, just 50 km away and has factories of leading drug makers like Dr Reddy’s, Cadila, Cipla etc. Abbott has the largest manufacturing site here. Baddi has made itself into a prime Pharmaceutical hub of India thereby attracting many national and international businesses. The Pharma capital of India has been a prominent site of production that has been contributing to the economy since 1990. The excise tax is still a problem here that led to closing down of many offices.
- Chakan in Pune belt (Mumbai)
Chakan is in the Western belt of Pune and is home to one-third of India’s automotive production. The big players in the league are Bajaj, Mercedes-Benz, Volkswagen and Tata Motors. Chakan has played a prominent role in attracting over 225 German and Indian companies altogether. The world-class facility by Mercedes Benz has doubled its capacity since 2009, which is a huge win for our growing economy. However, the place lacks facilities like access to an International airport, public transport, and effluent treatment plants which are slowing down the growth further.
With over 48 companies and big names like Toyota Parts, Daikin, Nippon, Hitachi, and Mikuni, Neemrana is a hub for Japanese companies. Reasons being the cheaper land costs, dedicated power supply, and labour supply. Recently, Daikin became India’s second largest manufacturer of AC turnover which has as 700-crore worth plant that employs 1,500 people. In spite of these, basic infrastructure needs are not met such as hospitals, schools to ensure a well-developed ecosystem.
Surat is a huge site for diamond industry and meets global demands with 4000–5000 polishing units. It was barely hit by recession in the past. Every day, 150–200 crore worth of diamond is polished there, so you can very well imagine their contribution to the economy on a regular basis. However, the demands are raised to increase the import payment credit cycle from 90 days to 180 days that can eventually favour Indian merchants and attract them more into the business.
The textile hub employs 3.5 lakh people with 17,800 crores worth of the industry market. Tirupur is a favoured destination for supplying cotton apparels to many big brands yet the customs duty is taking away most of the business generating $15 billion of revenue last year as compared to that of Bangladesh’s $22 billion which provides duty-free exports. Also famed as ‘the dollar city’ of India, Tirupur has propelled the exports since last three decades scaling up the economy. The city has been seen as favoured destination for Indian garment export industry yet faces the lack of recognition and necessary measures to tap its full potential. The exporters are eyeing on textile ministry and union budget for some positive changes.
Most of the above manufacturing destinations are favoured by global players for a couple of common reasons like cheap availability of land and labour as well as infrastructural reforms. Yet, there is a need for reforms from State government’s end for particular manufacturing hubs. Newer manufacturing hotspots are also emerging with expansion activities in the offing. At this breakneck speed, India can easily overtake many global players in coming years.
Originally published at www.ofbusiness.com.