Of those Indian CEOs who have existing investments outside of the country, nine percent say they will decrease investment in the US and Canada, nine percent will reduce investment in Africa and three percent will decrease domestic investment. Countries in which this same group expects to have the most significant increases in investment are China (60 percent), ASEAN (56 percent) and the Middle East (55 percent).

The primary reason for Indian CEOs non-domestic investments
is to obtain lower manufacturing costs (55 percent). But a large majority is also re-shoring operations—85 percent say that some part of their domestic investment is related to re-shoring. Mapping and adapting their products and services against the needs of buyers in key regions around the world is of utmost importance as is having the right relationships and supporting infrastructure to win and sustain business in new markets. Assessing how to best enable their strategy will be what supports long-term growth and profitability.

Over all, India is proving itself to be a valuable hub from which to sell to smaller yet growing markets in the region, as well as larger - yet less cost effective and stable - emerging markets. Simply put, manufacturers now see India as both a low cost regional manufacturing center and as a vital customer market.

Doug Gates is Chair, Global Industrial Manufacturing, KPMG International and S V Sukumar is Partner and Head of Industrial Manufacturing, KPMG in India

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