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Sourcing Knowledge Center / Ask the Sourcing Experts / What is the current status of India as a key manufacturing country?
Full Question
I have been a keen observer of the China phenomenon, and impressed. Given your vast experience, I would love to understand your perspective on the following. As India starts its strides in footsteps of china, would global buyers start procuring a lot more from India too, whether for the developed markets/ key emerging markets, including the emerging Indian middle class market.
Answer
Thanks for your email. I have visited India a few times but wouldn't consider myself "in-the-know" when it comes to Indian business. But I can tell you that my clients and friends who have been looking to source items like electronics, toy, sporting goods and general hard and soft goods from India have had mixed results. Most leave with the impression that India does have a future in sourcing, but the infrastructure, scale and wide production base currently found in China gives China the edge as the primary sourcing destination for at least 10 more years. From my buying experience, India is making rapid moves forward and I have Indian clients who hire my firm, PassageMaker, to purchase hardware and electronic components in China to be shipped to India for final assembly. The day those clients can find the BOM inside India is the day that India will start to pull real share of the market from China. But it is a big step to get to that point.
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