India’s industrial sector could unlock a $3 trillion opportunity by 2035, driven by robust manufacturing growth and major infrastructure investments, according to a report by Omniscience Capital. The sector, which currently contributes 27.3% to India’s GDP, is projected to exceed a 30% share as the country's GDP expands to a potential $10 trillion by 2035.

The report marks this as the next major phase of the Amrit Kaal vision, with a focused push toward industrial and services sector development built on strong digital and physical infrastructure foundations. While the past five years saw construction-led growth, manufacturing is expected to dominate the industrial sector by 2035, contributing over 20% to GDP and accounting for two-thirds of the sector's value.

Omniscience Capital emphasised that higher domestic consumption—fuelled by rising per capita income—and India’s target of $1 trillion in merchandise exports by 2030 will be major growth drivers. Achieving this will require a 12% annual growth in exports, up from the current $450 billion. Notably, India’s merchandise exports have shown strong momentum, growing at an 18.8% CAGR over the past three years.

Ashwini Shami, EVP and Portfolio Manager, OmniScience Capital, “India is poised to continue emerging as a preferred destination for manufacturing investments due to the availability of raw materials, low labour costs, a favourable corporate tax rate for manufacturing, and proactive government support through incentives. The first two phases of India’s transformation through the Amrit Kaal vision focused on building the digital and the physical infrastructure. Phase 1 created a nationwide marketplace with GST, ONDC, UPI, Jan-Dhan accounts, Aadhaar, and affordable telecom. Phase 2, still ongoing, focuses on physical infra through the Gati Shakti initiative to enhance logistics efficiency and future readiness. The third phase of Amrit Kaal will focus on growth of Industrial and Services sectors.”

The report also underscores the broader benefits of manufacturing growth, including job creation, reduced import dependency, improved trade balance, and socio-economic upliftment. However, it stresses the need for adoption of advanced manufacturing technologies, streamlined supply chains, and a favourable business ecosystem.

Supporting this vision, the Government of India is implementing 11 Industrial Corridor Projects under the National Industrial Corridor Development Programme (NICDP), backed by Rs 99 billion in sanctioned funding—nearly all of which has already been utilised.

Objectives of the industrial corridors:

• Develop greenfield smart industrial cities with advanced infrastructure and urban planning features such as plug-n-play setups and walk-to-work layouts.
• Attract large-scale industrial and MSME investments to help achieve $2 trillion in exports by 2030.
• Upgrade infrastructure in alignment with the PM GatiShakti National Master Plan for improved multi-modal logistics and regional development.
• Create employment, with projections of 1 million direct and 3 million indirect jobs.

Key industrial corridors and focus industries:

The initiative aims to elevate India as a global manufacturing powerhouse, boosting exports, attracting foreign and domestic investment, and enabling holistic economic growth across states through modern, well-planned industrial ecosystems.