Excited, Sharma thought to himself, “Maybe we’re finally entering a manufacturing boom.” But that hope didn’t last long.
Veteran investor Shankar Sharma recently visited a small, crowded workshop in a Mumbai slum. At first, he thought he had discovered proof of India’s manufacturing growth. The workshop promised sleek, custom-made gym equipment — the kind you’d expect from a professional catalog.
When he asked the shop owner if he really made the equipment himself, the answer surprised him. “Sir, I import from China and assemble it here. Their quality, finish, and look are simply unmatched,” the owner said.
Sharma shared this experience on social media, calling it a “true story of yesterday.” But for many in India, this is still the story of today. Despite growing talk about India becoming a global manufacturing hub, especially as companies look for alternatives to China, the reality on the ground is more complicated.
Many users who saw Sharma’s post expressed the same frustration. One person wrote, “Maybe it’s time we accept that China is just ahead of everyone.” Another commented, “We still can’t make even basic items like nail clippers or bathroom scales at their level of quality — forget cars or electronics.”
The idea that India can be a strong "China+1" option in global supply chains gained popularity during the pandemic and amid rising tensions between the U.S. and China. With high tariffs on Chinese goods — some as high as 145% — and India being spared from some of these duties, it seemed like the perfect moment to step up.
But experts say one big hurdle is India’s outdated and restrictive regulations. A study cited in the Economic Survey 2023–24 shows how tough building laws — such as setback rules, parking requirements, and limits on floor space — force factories to waste up to 90% of their land in some states. That makes setting up efficient manufacturing units nearly impossible.
Unlike countries like Singapore, Hong Kong, or the Philippines, where land is used more smartly, Indian factories remain stuck — both physically and by policy.
To truly grow, India doesn’t just need investments or government support. It needs bold reforms that make it easier for factories to build, expand, and compete globally. Until then, as Sharma’s short visit revealed, India may continue building dreams — using parts still made in China.
When he asked the shop owner if he really made the equipment himself, the answer surprised him. “Sir, I import from China and assemble it here. Their quality, finish, and look are simply unmatched,” the owner said.
Sharma shared this experience on social media, calling it a “true story of yesterday.” But for many in India, this is still the story of today. Despite growing talk about India becoming a global manufacturing hub, especially as companies look for alternatives to China, the reality on the ground is more complicated.
Many users who saw Sharma’s post expressed the same frustration. One person wrote, “Maybe it’s time we accept that China is just ahead of everyone.” Another commented, “We still can’t make even basic items like nail clippers or bathroom scales at their level of quality — forget cars or electronics.”
The idea that India can be a strong "China+1" option in global supply chains gained popularity during the pandemic and amid rising tensions between the U.S. and China. With high tariffs on Chinese goods — some as high as 145% — and India being spared from some of these duties, it seemed like the perfect moment to step up.
But experts say one big hurdle is India’s outdated and restrictive regulations. A study cited in the Economic Survey 2023–24 shows how tough building laws — such as setback rules, parking requirements, and limits on floor space — force factories to waste up to 90% of their land in some states. That makes setting up efficient manufacturing units nearly impossible.
Unlike countries like Singapore, Hong Kong, or the Philippines, where land is used more smartly, Indian factories remain stuck — both physically and by policy.
To truly grow, India doesn’t just need investments or government support. It needs bold reforms that make it easier for factories to build, expand, and compete globally. Until then, as Sharma’s short visit revealed, India may continue building dreams — using parts still made in China.
