A Growing Workforce
India today stands with one of the largest working-age populations in the world. The age group of 15 to 64 years adds up to around 961 million people, almost as large as China’s 984 million (see the image below).
This gives India a strong base to drive manufacturing and employment growth. Indonesia comes next with 187 million, while countries like Vietnam and the Philippines have much smaller numbers. When we look at the scale, it is clear that only India and China truly hold the power to supply the global workforce.
Low Factory Wages
One of India’s biggest advantages lies in its labor cost. The manufacturing wage per hour in India is around $1, while in China it has already risen to $5.6 per hour. This gap shows how competitive Indian labor is compared to its closest rival. Even countries like Vietnam pay 60% more than India, and Thailand pays 150% more. Only Indonesia comes close, but it lacks the large numbers of workers that India has.
China’s Rising Costs
For years, China has been the factory of the world. But as wages keep rising there, the competitive edge of Chinese workers is starting to shrink. This creates a huge opportunity for India to step in. Global companies looking to shift their base from China will naturally search for a country that offers both a large workforce and low wages. India fits perfectly into that picture.
Turning Numbers into Strength
While the numbers clearly favor India, the real challenge lies in how this opportunity is used. It is not only about cheap labor, but also about policies, infrastructure, and corporate action. If businesses and the government work together to build strong supply chains and better facilities, India’s manufacturing sector can grow at an exponential pace. Without these moves, the demographic dividend may remain just potential, not reality.
A Global Manufacturing Hub in the Making
The world is slowly moving towards outsourcing more production outside China. Rising costs there mean countries will look at India as the next big hub. With a huge labor force and the lowest factory wages among major economies, India holds a unique position. If utilized well, this can mark the start of a new era where India becomes a global center for manufacturing.
