India's Potential as a 'China Plus One' Manufacturing Hub and the Role of SEZ Policies
Key Ideas
  • India has the opportunity to become a 'China plus one' manufacturing hub if SEZ policies align with global best practices.
  • The development of the Galathea Bay transshipment port can position India as a global logistics hub and transform global trade.
  • Emphasis on establishing railway terminals outside major cities to boost last-mile connectivity and attract private investment.
  • Industry veteran highlights the importance of advancing hydrogen fuel capabilities for long-haul trucks to gain global technological leadership.
India has the potential to emerge as a significant manufacturing hub dubbed 'China plus one', as shared by N Sivasailam, a former Special Secretary (Logistics) in the Department of Commerce. Sivasailam emphasized the need for India to reform its Special Economic Zone (SEZ) framework to attract industries looking to relocate from China. Aligning SEZ policies with global standards could create a more business-friendly environment without excessive regulations. The development of the Galathea Bay transshipment port in Andaman and Nicobar Islands is seen as a pivotal move that could establish India as a global logistics hub and revolutionize global trade. Sivasailam also stressed the importance of enhancing last-mile connectivity by proposing the establishment of railway terminals outside major cities to drive private investment and streamline supply chains. Moreover, the industry veteran highlighted the significance of advancing hydrogen fuel capabilities, particularly for heavy vehicles like long-haul trucks. He stated that while electric vehicles are crucial for the future, India's dependency on other countries for lithium, a core component of batteries, underscores the need to focus on hydrogen fuel. Sivasailam believes that mastering hydrogen technology could provide India with a competitive edge globally. In conclusion, the article outlines India's potential in the manufacturing sector, the importance of SEZ policy reforms, the strategic positioning of the Galathea Bay port, the necessity of railway terminals for last-mile connectivity, and the critical role of hydrogen fuel advancement for long-term sustainability and technological leadership.
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