{"id":1024,"date":"2019-10-19T22:53:05","date_gmt":"2019-10-19T17:23:05","guid":{"rendered":"https:\/\/www.grainmart.in\/news\/?p=1024"},"modified":"2019-10-19T22:53:51","modified_gmt":"2019-10-19T17:23:51","slug":"why-india-is-not-favourable-market-for-manufacturers","status":"publish","type":"post","link":"https:\/\/www.grainmart.in\/news\/why-india-is-not-favourable-market-for-manufacturers\/","title":{"rendered":"Why India is not a Favourable Market for Manufacturers?"},"content":{"rendered":"\n<p>India has the second largest population in the world with median age of 30. Labour cost in India is almost half compared to China. These are ideal factors required for any Industry. Then why aren\u2019t the manufacturers coming to India?<\/p>\n\n\n\n<p>56 companies relocated their production out of china owing to the <a href=\"https:\/\/www.grainmart.in\/news\/us-trade-war-increased-import-tariff-hits-almonds-walnuts-and-apples\/\">trade war<\/a> between China and USA, between April 2018 and August 2019. Out of these 56 companies, just 3 companies came to India.<\/p>\n\n\n\n<p>There are various factors that stop India from becoming manufacturing giant.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><strong>Unfavourable tax policies and lack of incentives<\/strong><\/h5>\n\n\n\n<p>The tax policies and rates are unfriendly for the manufactures. The tax rates are high in India. It is economical to import rather than producing goods in India due to high costs and tax rates.<\/p>\n\n\n\n<p>Also, there are <a href=\"https:\/\/www.grainmart.in\/news\/will-government-subsidies-help-indias-sugar-exports\/\">few incentives<\/a> provided by the government on export of goods and growth sectors.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><strong>Dearth of manufacturing culture<\/strong><\/h5>\n\n\n\n<p>Manufacturing in India is not easy. Land permit, licences, pollution certificates, etc are a weary process in India. Many government officials involved at different stages of each process. Therefore, making the process very cumbersome and difficult for ease of business.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image is-resized\"><img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/www.grainmart.in\/news\/wp-content\/uploads\/2019\/10\/hawaii-240301_1280-1-1024x640.jpg\" alt=\"\" class=\"wp-image-878\" width=\"473\" height=\"295\" srcset=\"https:\/\/www.grainmart.in\/news\/wp-content\/uploads\/2019\/10\/hawaii-240301_1280-1-1024x640.jpg 1024w, https:\/\/www.grainmart.in\/news\/wp-content\/uploads\/2019\/10\/hawaii-240301_1280-1-300x188.jpg 300w, https:\/\/www.grainmart.in\/news\/wp-content\/uploads\/2019\/10\/hawaii-240301_1280-1-768x480.jpg 768w, https:\/\/www.grainmart.in\/news\/wp-content\/uploads\/2019\/10\/hawaii-240301_1280-1.jpg 1280w\" sizes=\"(max-width: 473px) 100vw, 473px\" \/><figcaption>Closed Manufacturing Unit via Pixabay<\/figcaption><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>On the other hand, in manufacturing countries such as Vietnam, where 11 of the 56 relocated companies went, there is only one person involved from the government\u2019s side who handles all the issues.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><strong>Lack of infrastructure and transport facilities<\/strong><\/h5>\n\n\n\n<p>India lacks the infrastructure and transport facilities required by manufacturing companies. According to some studies, India\u2019s GDP reduces by 1-2% every year because of its poor infrastructure. <\/p>\n\n\n\n<p>Furthermore, poor transport facilities reduce <a href=\"https:\/\/www.grainmart.in\/news\/karnataka-small-dal-mills-shut-due-to-losses\/\">manufacturers profitability<\/a> significantly.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><strong>Unskilled labour<\/strong><\/h5>\n\n\n\n<p>Unskilled workforce is the chunk in India\u2019s armour. There is lack of quality education in India. Most of the workers, engineers lack skills required for their job. Manufacturers in India face a dilemma hiring skilled workers.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image is-resized\"><img decoding=\"async\" src=\"https:\/\/www.grainmart.in\/news\/wp-content\/uploads\/2019\/10\/cashew-factory-1024x683.jpg\" alt=\"\" class=\"wp-image-972\" width=\"439\" height=\"292\" srcset=\"https:\/\/www.grainmart.in\/news\/wp-content\/uploads\/2019\/10\/cashew-factory.jpg 1024w, https:\/\/www.grainmart.in\/news\/wp-content\/uploads\/2019\/10\/cashew-factory-300x200.jpg 300w, https:\/\/www.grainmart.in\/news\/wp-content\/uploads\/2019\/10\/cashew-factory-768x512.jpg 768w\" sizes=\"(max-width: 439px) 100vw, 439px\" \/><figcaption>Unskilled Workers at a Cashew Processing Plant<\/figcaption><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>Government should take initiative to skill its workforce. In addition, It should make more efforts and launch campaigns similar to <a href=\"https:\/\/skillindia.nsdcindia.org\/\">skill India<\/a> successful.<\/p>\n\n\n\n<p>However, India recently jumped 23 places on ease of doing business index  and ranked 77 in the world. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Labour cost in India is almost half compared to China. Then why aren\u2019t the manufacturers coming to India? Lack of Infrastructure, High Taxes,<\/p>\n","protected":false},"author":10,"featured_media":943,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[3070,3077,370,3071,3068,3069,3067,3072,3075,3074,3065,3066,3073,3076,1778],"class_list":["post-1024","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-china-us-trade-war","tag-ease-of-doing-business","tag-gst","tag-incentives","tag-india-manufacturing","tag-lack-of-infrastructure","tag-manufacturers","tag-manufacturing-in-india","tag-skill-india","tag-skilled-labour","tag-tax","tag-tax-policies","tag-transport-facilities","tag-unskilled-labour","tag-vietnam"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Why India is not a Favourable Market for Manufacturers? - Grainmart News<\/title>\n<meta name=\"description\" content=\"Labour cost in India is almost half compared to China. Then why aren\u2019t the manufacturers coming to India? Lack of Infrastructure, High Taxes,\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.grainmart.in\/news\/why-india-is-not-favourable-market-for-manufacturers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why India is not a Favourable Market for Manufacturers? - Grainmart News\" \/>\n<meta property=\"og:description\" content=\"Labour cost in India is almost half compared to China. Then why aren\u2019t the manufacturers coming to India? 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