ATLANTA — India's campaign to increase manufacturing in the country is showing dividends for the corporate real estate community, according to a new report released by CoreNet Global, Make in India: A Manufacturing Initiative.
"Make in India" is a government initiative to encourage additional manufacturing by creating an environment conducive to its growth and development. The aim is to increase manufacturing's share of GDP from 16 percent (where it has remained stagnant for a few years) to 25 percent, and create an additional 100 million manufacturing jobs by 2022.
The Make in India initiative was introduced in 2014 and implemented several intertwining policies that would enable manufacturing and industry to grow, including Digital India, the Goods and Services Tax (GST), Smart Cities and Start-Up India.
Since the announcement of the "Make in India" and related initiatives, there has been an influx of companies signing Memorandums of Understanding (MoU) or starting operations in the country:
In addition to companies boosting their investment, countries such as Japan and Germany have shown interest. For example, Japan plans to set up a 12 billion USD fund for projects related to Make in India. Similarly, several MoUs have been signed between India and Germany to fast-track investment by German companies and make it easier for them to conduct business in India.
With the anticipated increase in manufacturing investment, there is an expected uptick seen in the demand for related real estate. Not only will this be for warehouses and manufacturing space, but there will also be an increased demand for office space to house those being employed by the new manufacturing facilities. Similarly, there should be growth in retail space in order to showcase the goods being produced.
These and other themes will be explored by corporate real estate leaders from across the region at the CoreNet Global India Conference later this month.
Download the full report.
About CoreNet Global
CoreNet Global is the world's leading professional association for corporate real estate (CRE) and workplace executives, service providers and economic developers. CoreNet Global's 10,000 members, who include 70% of the top 100 U.S. companies and nearly half of the Global 2000, meet locally, globally and virtually to develop networks, share knowledge, learn and thrive professionally. For more information, please visit www.corenetglobal.org.