The Great Manufacturing Exodus

In a sweeping industrial metamorphosis, the manufacturing realm is currently witnessing a seismic shift as a multitude of prestigious and renowned companies – once firmly established in the vibrant city-state of Singapore – are pivoting their attention towards India. The latest report by The Economic Times reveals industry titans like Apple, Kia, Toshiba, Siemens, Boeing, and Samsung emerging as the visionary vanguards of this migration. Even contract manufacturers based in Singapore, renowned for their unwavering support to Multinational Corporations, have embarked on this journey of relocation, finding their new roots amidst the bustling and colourful landscape of India.

At the epicenter of facilitating this epoch-making transformation is Enterprise Singapore, an  entrusted statutory body of Singapore government’s Ministry of Trade and Industry. Their steadfast commitment to fostering and nurturing business ventures has yielded remarkable results, with an unprecedented 40% surge in the number of ventures partnering with Enterprise Singapore in the last year itself. Additionally, the industries that have embarked in this transformative journey are not just restricted to manufacturing –  in fact they include industries of information and communication as well as professional services, which play an instrumental role in shaping the future of this migration to the Indian subcontinent.

The amalgam of India’s judicious government policies, economic outlook, and the disruptive aftermath of the pandemic has revealed the imperative need for companies in Singapore to diversify their supply chains and relocate. In India’s economic landscape, businesses find themselves embraced by an environment which nurtures their growth, courtesy of the aforementioned government policies that have created an inviting ambiance for collaborative entrepreneurial ventures to flourish.

The fusion between Singapore and India goes beyond just the development sector, as the integration of these two cultures can be seen in various spheres such as architecture and fashion as well. Located in Singapore’s Chinatown is the picturesque and iconic Sri Mariamman Temple, a Hindu temple which incorporates the elements of Indian architecture, including ornate carvings, colourful faces, intricate sculptures and blends in well with the Singaporean environment. Additionally, in the realm of fashion a collaboration took place on April 13th, 2023, involving popular Indian fashion brands such as Chumbak, The Souled Store, and RSVP by Nykaa Fashion. They joined forces with Little Black Book (LBB) and The Singapore Tourism Board to introduce a fresh collection named ‘Singapore Inspired’ – the collection consisted of 41 different products, ranging from clothing, accessories, home decor, and lifestyle products.

India has set ambitious, but achievable goals, to amplify the manufacturing sector’s contribution to the country’s GDP from its current standing at 16% to a remarkable 25% by the year 2025. This target and objective has prompted companies to flock to the state of Tamil Nadu, which currently houses a staggering number of 39,000 registered factories that are eagerly waiting for the arrival of visionary enterprises, ready to embrace this very industrious spirit.

While companies flock to India, it is imperative to recognise the mutually beneficial relationship that India and Singapore have cultivated and maintained, resulting in the Island country becoming the second-largest investor in India. Renowned Indian conglomerates such as Reliance Industries, the Tata Group, Wipro, Infosys, and Mahindra & Mahindra, have also established their bases in Singapore, effectively strengthening ties between the two countries even more. The expansion of these conglomerates into Southeast Asia and beyond, has enabled them to tap into Singapore’s diverse talent pool and expertise.

Each transformative stroke of migration is leading the manufacturing sector to witness an extraordinary shift in the paradigm. This intricate symbiosis of collaboration and growth, seamlessly fuses Singaporean ingenuity and Indian dynamism propelling the manufacturing domain to unparalleled zeniths, which is sure to engrave a legacy in the global industry.

Words by Esha Aphale.

Cover Image via Indian Heritage Centre, Singapore.