India Manufacturing Market Size

India Manufacturing Sector Market Analysis

India's Manufacturing Sector Market is expected to register a CAGR of more than 4 % during the forecast period (2023 - 2028).

• India's manufacturing sector had gone through various phases of development during COVID-19. The sector contributes to approximately 16-17% of the GDP and employs almost 20% of the country's workforce. During the first wave of the pandemic, lockdown-imposed restrictions on the movement of goods and people severely impacted workforce capacity and disrupted supply chains, bringing nearly all manufacturing activity to a stand-still.
• India is an attractive hub for foreign investments in the manufacturing sector. Several mobile phones, luxury, and automobile brands, among others, have set up or are looking to establish their manufacturing bases in the country. Implementing the Goods and Services Tax (GST) will make India a common market with a GDP of USD 2.5 trillion and a population of 1.32 billion people, which will be a big draw for investors. The Indian Cellular and Electronics Association (ICEA) predicts that India has the potential to scale up its cumulative laptop and tablet manufacturing capacity to USD 100 billion by 2025 through policy interventions.
• One of the initiatives by the Government of India's Ministry for Heavy Industries & Public Enterprises is SAMARTH Udyog Bharat 4.0, or SAMARTH Advanced Manufacturing and Rapid Transformation Hubs. This is expected to increase the manufacturing sector's competitiveness in the capital goods market. With an impetus on developing industrial corridors and smart cities, the Government aims to ensure the nation's holistic development. The corridors would further assist in integrating, monitoring, and developing a conducive environment for industrial development and will promote advanced practices in manufacturing.
• India is gradually progressing on the road to Industry 4.0 through the Government of India's initiatives like the National Manufacturing Policy which aims to increase the share of manufacturing in GDP to 25 percent by 2025 and the PLI scheme for manufacturing which was launched in 2022 to develop the core manufacturing sector at par with global manufacturing standards. The manufacturing sector in India is gradually shifting to more automated and process-driven manufacturing which is expected to increase the efficiency and boost production of the manufacturing industry.