How has India become the emerging hub for  machinery spare parts manufacturing and logistics?

India holds immense untapped potential in the world of machinery spare parts manufacturing. From (sustainable) automobile spares, bearings, gears, belts, valves, electronic components and accessories to medical and scientific machinery components, India produces a diverse range of high-quality spare parts that meet stringent international standards. This sector is not confined by borders; machinery and spare parts operate on a global scale, mostly in industrial niche sectors. They become more specialised and show a rise for demand of high-performance, precision and customised spare parts. This is linked to on-demand manufacturing, which enables manufacturers to offer, assemble and store small batches of customised spare parts. As a result, rapid responses to market changes are possible. The sector in India is a significant contributor to the country’s GDP, with the government aiming to increase the manufacturing sector’s contribution to 25% of the economy by 2025 under the Make in India initiative. This initiative is set up to boost exports from India.

Transporting machinery spare parts from India to Europe is a complex process that involves multiple logistics gateways:

• Airports: Delhi, Mumbai, Hyderabad, Chennai, Coimbatore, Ahmedabad
• Seaports: Nhava Sheva, Mundra, Kandla, Chennai, Visakhapatnam

These gateways are critical for both air and sea freight, providing flexible and efficient transport solutions that cater to the diverse needs of the machinery spare parts industry.

The EU-India trade relationship is set to reach new heights, with ongoing negotiations for a Free Trade Agreement (FTA) that promises to boost economic cooperation. This FTA aims to reduce tariffs, streamline customs procedures, and foster stronger economic ties, making it easier for Indian manufacturers to export machinery spare parts to Europe.

The trade lane between Europe and India is characterised by key logistics hubs in both regions. Major Indian ports like Nhava Sheva, Mundra, and Chennai will play pivotal roles in handling exports to Europe. On the European side, ports such as Rotterdam, Hamburg, and Antwerp will be crucial entry points for Indian goods. Efficient logistics operations at these hubs will be essential to maintain the flow of machinery spare parts.

India’s emergence as a key player in the global machinery spare parts market is a testament to its robust manufacturing capabilities and strategic logistics infrastructure. For businesses in Europe, partnering with experienced logistics providers in India ensures a seamless supply chain, overcoming challenges and maximising opportunities. As the EU-India economic relationship continues to strengthen, the future of machinery spare parts logistics between these regions is promising, paving the way for growth and innovation.

Ready to discover the potential of India’s logistics excellence for your supply chain? Contact us to explore customised logistics solutions tailored to your business needs.