💨 Abstract

Indian manufacturing firms are increasingly opting for a multi-plant strategy instead of scaling up a single plant, according to a new study. This shift has led to a loss of scale efficiencies, making India less competitive in labor-intensive sectors like apparel compared to smaller economies like Bangladesh. The study, published by the Madras Institute of Development Studies, found that the share of multi-plant firms in India's manufacturing sector has grown significantly over the past two decades.

Courtesy: theprint.in