India: An evolving global hub for manufacturing (2025)

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An analysis of what’s driving the manufacturing renaissance in the country

October 25, 2024

As India continues on its rapid economic growth trajectory, the manufacturing sector stands as a remarkable testament to its burgeoning industrial prowess. Attracting both domestic and international investors, the country has emerged as the preferred destination for manufacturing. Investors and global organisations and looking to capitalise on India’s vast resources, skilled workforce, and favourable market conditions.

The key industries leading this manufacturing boom include electronics, semiconductors, pharmaceuticals, automotive and renewable energy. These sectors are witnessing substantial investments from both domestic and international players.

The country's industrial landscape is dotted with thriving clusters, each offering unique advantages. These hubs are becoming hotspots for manufacturing activities, with growing infrastructure, local government support and access to a skilled talent pool.

India’s appeal as a manufacturing powerhouse is only growing by the day. This has been made evident by the recent notable investments made in the country. Across sectors, the country is seeing significant interest from domestic as well as international investors.

India's attractiveness as a manufacturing destination is bolstered by several key advantages. Its strategic location keeps it at the epicentre of both the eastern and western markets, with infrastructure development only enhancing connectivity and operational efficiency.

In addition, many government initiatives have been a game-changer in boosting domestic manufacturing. This, when supported by access to a large skilled workers and cost competitiveness, makes India an attractive alternative to traditional manufacturing hubs.

As global companies seek to diversify their manufacturing bases beyond China, India is positioning itself as a viable and attractive alternative. With its multifaceted advantages and growing investments, India is poised to become a major player in the global manufacturing landscape.

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