In this State of the Economy podcast, Aishwarya Kumar discusses the rapid rise of contract manufacturing in India and its connection to global trade shifts, particularly US tariffs. Amrit Acharya, co-founder, Zetwerk, and Nikhil Rao, VP – Operations, Flex India share their insights on the evolving landscape.
Amrit highlights that the growth of contract manufacturing in India has been fuelled by a combination of favorable macroeconomic conditions and the government’s GST reforms. He emphasises the shift in global manufacturing patterns, with India emerging as a key alternative to traditional hubs. The domestic market’s size is also a significant factor in attracting companies to set up operations in India.
Nikhil Rao, noting that Flex India has benefitted from government initiatives like the “Make in India” campaign and the Production-Linked Incentive (PLI) schemes. These moves have accelerated domestic manufacturing, particularly in consumer products, and attracted more global customers. The company has also focused on diversifying its markets and strengthening its workforce to stay competitive.
Both of them address the impact of recent US tariffs on imports from Southeast Asian countries, particularly how contract manufacturers must diversify their portfolios to mitigate risks. Nikhil emphasises the importance of having a diverse market strategy, both domestically and internationally, to stay resilient during trade disruptions.
Listen in to know more about US tariffs and whether it will affect India’s contract manufacturing sector.
Host and Producer: Aishwarya Kumar
About the State of the Economy podcast
India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders
Published on April 3, 2025
