Ten years ago, Noida, located on the side of Delhi, was mostly fields, cows, and small villages. Now it is a promising industrial and residential area, where offices, factories, and clusters of high-rise buildings stand out in the darkest of clouds. The area also has a new airport, one of the largest shopping centers in the country, and plenty of manufacturing industry. For example, Korean Samsung has built a significant production plant in Noida. A Finn has also started to absorb the company Greenlux, which manufactures LED lights for the industry. It is currently building a new manufacturing unit near its existing factory with an investment of approximately three million.
“Demand has grown wildly, and we wanted to respond to it. In addition, we focus on the development of new technologies,” says Dhruv Mahajan, director and partner of Greenlux’s Indian company. The company firmly believes in both the Indian domestic market and the growth of the export market and now wants to invest in India instead of China.
According to Greenlux’s Dhruv Mahajan, India is more Western than China. There is a buzz inside the factory, where the functionality of the LED lights is tested by hand. The company has more than a hundred employees in the unit and more are being sought. India has many advantages compared to China, Mahajan reminds. One of them is cheaper labor. “Legislation, the English language, and Western-style business culture are other advantages of India,” he says.
In recent years, significant reforms have been carried out in India, which have opened up the operations of foreign companies in the country. A lot of infrastructure is being built around the country. Noida is a good example of India’s ability to adapt quickly. The area is now being developed especially by Koreans and Japanese, who are planning industrial concentrations and infrastructure projects there. Also, a manufacturer of ventilation equipment, Halton, is currently considering expanding its operations in India as part of the Make in India program.
Another company, Normet, has trimmed its Indian operations and is investing in increasing equipment production in the country. The company sees potential in the mining sector in India and believes that the Indian market is promising for future growth. India is known for its protectionist policy and reluctance to give in on trade agreements. The EU Commission is working towards completing trade agreement negotiations with India by the end of the year, focusing on areas such as digitization, education, and sustainable development projects.