India Eyes Global Manufacturing Hub Status: Industry Leaders Push For More FTAs
Experts underlined that India's rising domestic consumption, coupled with global supply chain realignments, present a unique opportunity for the country to emerge as a competitive manufacturing hub.
Industry leaders on Wednesday called for expanding India's Free Trade Agreements (FTAs) to secure preferential treatment in international markets, while stressing that sustainability and policy support will be critical for positioning India as a global manufacturing hub.
The FICCI's 14th edition of Massmerize conference, held on the theme "Make in India: Powering the Future of FMCG, Retail and E-Commerce" brought together top executives from retail, FMCG and e-commerce sectors who urged the government to accelerate trade negotiations, extend production incentives to sustainable industries, and invest in infrastructure.
Mayank Mohan, CEO and Owner of Mohanlal Sons, said that India needs to bridge the export gap with competitors such as Bangladesh, Vietnam and Turkey."
Countries like Bangladesh and Vietnam are already exporting more than India when it comes to apparel and textiles. More FTAs mean cost advantages and preferential treatment, which can boost both domestic consumption and exports. If India negotiates wider FTAs with key markets like the UK and the US, we will get the cost edge we need," he said.
He added that while the government has made progress with several agreements, more must be done to create a level playing field for Indian exporters.
"Extending the Production Linked Incentive (PLI) scheme to sectors that encourage sustainable fabrics and large-scale quality production will give the right push. Incentives should not go to low-quality, non-sustainable manufacturing--it must be about building globally competitive industries," Mohan stressed.
Highlighting the sustainability imperative, Aseem Kaushik, Country Managing Director of L'Oreal India, said the company is reimagining its product design to reduce environmental impact.
"Across all our brands, there is a huge push to reduce the intensity of plastic and make products reusable. For example, all our fragrances now come with refillable bottles, reducing glass, metal and plastic use by nearly 50 per cent. Similarly, skincare is moving towards recyclable 1-litre pouches," he said.
Kaushik noted that while luxury consumers may initially hesitate to refill products, brand equity and awareness campaigns can drive behaviour change.
"It has to be the thing you do, not just one of the things. Our plants in India are already 100 per cent renewable energy-powered, and we are plastic neutral--collecting back more plastic than we put into the market. Our Baddi plant will soon be fully water-neutral, recycling every drop of water used in production," he added.
The session, moderated by Deloitte India Partner Goldie Dhama, also saw participation from Ashish Goupal, CEO, FMCG Business, Marico Limited; Ranjit Batra, Director, ChrysCapital; and Salil Choudhary, Chief Executive Officer, Piramal Critical Care and Managing Director, Kenvue India.
Speakers underlined that India's rising domestic consumption, coupled with global supply chain realignments, present a unique opportunity for the country to emerge as a competitive manufacturing hub.
(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)
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