Manufacturing in India

Business Week reminds us that the new India isn't just software firms:

While technology giants build vast outsourcing operations in India, manufacturing investment far outweighs theirs. In the verdant hills near Mumbai, India's commercial capital, Volkswagen (VLKAY), Hyundai Motor, General Motors (GM), and a joint venture of Fiat (FIA) and local automaker Tata are all building new factories, for a total investment of $4 billion. Korean steelmaker Posco is planning a $12 billion plant in the eastern state of Orissa, while Luxembourg-based ArcelorMittal (MT) plans to invest $20 billion in two steel mills in Orissa and neighboring Jharkhand. In March, Hewlett-Packard Co. (HPQ) opened a factory near Delhi, its second Indian operation. And bathtub, sink, and toilet maker Kohler Co. is planning a $200 million plant in Gujarat. All told, 40% of 340 multinationals surveyed by consultant Capgemini plan to establish manufacturing operations in India by 2012. The companies say they're put off by rising costs in China, and have found that "the Indian government is being more proactive," says Capgemini Vice-President Roy Lendern.