India has been steadily climbing the ranks as a global manufacturing hub in recent years, with the country’s diverse economy and skilled workforce making it an attractive destination for investors.
The government’s ‘Make in India’ initiative has further fuelled this growth, with a focus on attracting foreign investment and encouraging domestic production.
In this article, we will take a closer look at India’s rise as a manufacturing powerhouse and some examples of its success. India, as per India Brand Equity Foundation, is making strides towards Industry 4.0 with initiatives like the National Manufacturing Policy and PLI scheme for manufacturing, aiming to increase the manufacturing share in GDP to 25% by 2025 and develop core manufacturing to global standards.
One of the key factors contributing to India’s manufacturing success is its large and diverse economy.
The country is home to a wide range of industries, from automotive and electronics to textiles and pharmaceuticals. This diversity has helped India weather global economic fluctuations and attract a diverse set of investors. Additionally, India’s large and growing middle class has created a strong domestic market for manufactured goods, providing further incentives for companies to invest in production in the country.
Another key factor driving India’s manufacturing growth is its skilled workforce. India has a large pool of young and educated workers, with a median age of 28 years old.
This demographic advantage has made India an attractive destination for companies looking for a skilled and affordable workforce.
Furthermore, the country has a strong network of technical and vocational training institutions, which have helped produce a highly skilled workforce in specialized areas such as engineering and technology.
India’s success in manufacturing can be seen in a number of examples. Foxconn, a Taiwanese electronics manufacturing giant and a supplier for Apple, is reportedly planning to invest more than $200 million in a new plant in India for the production and supply of AirPods, among other products. Similarly, Samsung has established its second-largest manufacturing facility in Noida, Uttar Pradesh, and its largest Research and Development centre in Bengaluru, India. Having started operations in India in 1996, the company now employs nearly 70,000 individuals in the country.
India’s automotive sector has also seen significant growth in recent years. The National Investment Promotion and Facilitation Agency predict that India will become the third-largest automotive market in the world by volume by 2030. Additionally, it is projected that the electric vehicle (EV) market will experience a Compound Annual Growth Rate (CAGR) of 49% between 2022 and 2030, resulting in 10 million units of annual sales by 2030. This growth is also expected to create 50 million direct and indirect jobs in the EV industry by 2030. India’s pharmaceutical industry is another success story, with the country emerging as a major producer of generic drugs.
According to the Ministry of Commerce and Industry, over the past nine years, the Indian pharmaceutical industry has grown at a Compound Annual Growth Rate (CAGR) of 9.43%, evolving into a thriving industry that now holds the third rank in terms of pharmaceutical production by volume.
The country is home to a number of large pharmaceutical companies, including Sun Pharma, Dr. Reddy’s Laboratories, and Cipla, which have a strong presence in both domestic and international markets.India’s manufacturing sector has become a major global player, driven by a diverse economy, skilled workforce, and supportive government policies. With significant growth in industries such as electronics, automotive, and pharmaceuticals, India is poised to further strengthen its position in the global economy through continued investment in manufacturing capabilities.
