India Makes Headway As A Production Base

A survey conducted by the state-owned JBIC (Japan Bank of International Cooperation), which provides loans to Japanese companies, revealed that China had dropped to fourth place after topping it since its inception in 1992, behind Indonesia, India and Thailand. It is to be noted that this survey was done prior to China’s move to establish a defense zone over the islands controlled by Japan. About 77 percent of the companies cited rising labor costs in China, along with other social and security instabilities as major areas of concern.

While all this sounds exciting, a reality check needs to be done. India has problems of its own; the acute shortage of manufacturing bases that falls short of the country’s own target, the chronic power shortages and the abominable roads that plague the country makes this fruitful prospect of the Japanese manufacturing bases migrating to India a long shot.

But one can always garner hope. India, in its latest National Electronic Policy clearly intends to lure major manufacturers of electronics to the country and away from China. One can only guess as to how early the country can take advantage of this situation.

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