Make in India in shifting world: Manufacturing for resilience, global leadership

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Make in India in shifting world: Manufacturing for resilience, global leadership

Make in India in shifting world: Manufacturing for resilience, global leadership

Articles
Sep 27,25

India stands at a defining moment where disruption in global trade, technology, and supply chains offers both risks and opportunities for manufacturing-led growth. Rohit Chandra, Co-Founder & CEO, OMC Power, highlights how resilience, sustainability, and innovation can position India as a trusted global manufacturing hub.

Make in India in shifting world: Manufacturing for resilience, global leadership

The world is navigating a decade defined by disruption. From the COVID-19 pandemic and geopolitical tensions to tariff wars, fractured supply chains, and climate-linked volatility, global manufacturing is being reimagined. Amid this flux, India stands at a pivotal crossroads. What appears as global uncertainty is, in fact, India’s moment to lead.

With its deep engineering talent, youthful workforce, and a reform-driven policy environment, India has the ingredients to become a trusted global manufacturing hub. The “Make in India” initiative, launched in 2014, was more than a slogan; it was a strategic call to action. Eleven years on, it has matured into a dynamic framework that continues to evolve, adapt, and inspire.

But ambition alone isn’t enough. To truly seize this opportunity, India must confront its challenges head-on and chart a path toward sustainable, inclusive, and globally competitive growth.

India’s place in the global manufacturing arena

India is now the world’s fifth-largest economy, with manufacturing contributing roughly 17–18 per cent to its GDP. While this is notable, it trails behind peers like China (26–28 per cent), South Korea (25 per cent), and Germany (20 per cent). The goal under Make in India 2.0 and the National Manufacturing Policy is clear: raise this share to 25 per cent and generate 100 million new jobs by 2030.

The global “China Plus One” strategy is accelerating, as companies seek to diversify supply chains. India is emerging as a preferred alternative—thanks to its scale, skilled talent, and robust domestic demand. But global investors demand more than potential. They seek predictability, ease of doing business, modern infrastructure, and regulatory clarity.

India’s rise in the World Bank’s Ease of Doing Business rankings, from 142 in 2014 to 63 in 2020, is a testament to reform. Yet, reforms must translate into consistent execution. That’s where the real test lies.

Navigating global headwinds

Global manufacturing is being reshaped by a series of interconnected challenges, and India must navigate these with agility and foresight. Rising protectionism—driven by tariff wars and shifting geopolitical alliances, is altering trade dynamics. In this environment, India has the opportunity to position itself as a reliable partner in global supply chains by negotiating smart trade agreements and reinforcing its credibility on the world stage.

Simultaneously, supply chain vulnerabilities have come into sharp focus. The COVID-19 pandemic, the Russia–Ukraine conflict, and tensions in the South China Sea have exposed fragilities in global logistics and raw material access. To mitigate these risks, India must invest in building resilient domestic supply chains, particularly in strategic sectors such as semiconductors, rare earths, and advanced machinery.

Technology adoption presents another critical challenge. As global manufacturing accelerates toward automation, AI, and robotics, India’s MSMEs, contributing nearly 45 per cent of manufacturing output, risk falling behind. Bridging this technological gap is essential to maintain competitiveness and ensure inclusive industrial growth.

Sustainability is no longer a peripheral concern—it is central to global buyer expectations. Low-carbon, circular manufacturing processes are becoming prerequisites for market access. India must embed green practices into its industrial framework, making sustainability a core component of its manufacturing ethos.

Finally, while India’s demographic dividend offers immense potential, skill mismatches continue to hinder productivity. Manufacturing output per worker remains low compared to global benchmarks. Addressing this requires a fundamental rethink of vocational training, apprenticeships, and stronger collaboration between industry and academia to align skilling with real-world needs.

Building the foundation: Government initiatives

India’s policy architecture has evolved significantly to support manufacturing-led growth, with several initiatives laying the groundwork for long-term competitiveness. The Production-Linked Incentive (PLI) schemes, spanning 14 sectors, from electronics and pharmaceuticals to green hydrogen and drones, have catalysed billions in investment. The success of smartphone manufacturing, with exports crossing $15 billion, signals the transformative potential of targeted incentives when aligned with global demand and domestic capability.

The implementation of the Goods and Services Tax (GST) has been another cornerstone reform. By creating a unified tax regime, GST has streamlined interstate logistics, reduced transaction costs, and fostered the emergence of a seamless national market—critical for scaling manufacturing operations across geographies.

India’s recent Free Trade Agreements (FTAs) with the UAE and Australia mark a strategic shift toward deeper global integration. These agreements open new avenues for market access and technology exchange. However, upcoming negotiations with the European Union and the United Kingdom will be pivotal in shaping India’s future competitiveness, especially in sectors where tariff barriers and regulatory standards are high.

Infrastructure and digital transformation are also playing a vital role. Investments in freight corridors, logistics parks, and industrial zones are helping reduce bottlenecks and improve supply chain efficiency. Simultaneously, Digital India initiatives, such as UPI, e-invoicing, and compliance simplification, are modernising business processes and enhancing transparency.

Yet, the success of these reforms’ hinges on consistency and execution. Policy reversals, regulatory delays, and infrastructure gaps can quickly erode investor confidence. In a global environment where speed and reliability are paramount, India’s ability to deliver on its promises will determine whether it can truly capitalize on the China+1 opportunity and emerge as a manufacturing powerhouse.

Emerging frontiers for Indian manufacturing

India’s ambitious target of achieving 500 GW of renewable energy capacity by 2030 is not just a climate commitment, it’s a manufacturing opportunity. The transition to green energy is creating demand for solar modules, wind turbines, energy storage systems, and green hydrogen infrastructure. With the right policy support and industrial momentum, India can position itself as both a domestic leader and a global exporter in clean-tech manufacturing.

The global semiconductor crunch has underscored the strategic importance of electronics and chip production. India’s semiconductor mission, backed by PLI incentives, is well-timed to capitalize on this shift. Beyond assembly, the focus must now expand to high-value design, fabrication, and ecosystem development. If executed well, India can become a credible player in the global electronics and semiconductor value chain.

In defence and aerospace, liberalisation is unlocking new avenues for private sector participation. India, traditionally one of the world’s largest arms importers, is now pushing for indigenisation. This shift not only strengthens national security but also opens up export potential, creating a dual advantage of strategic autonomy and economic opportunity.

Heavy engineering and process equipment are poised for growth as global infrastructure investments surge. From construction machinery to capital goods, Indian firms have the chance to capture greater value, provided they deepen their technological capabilities and move up the value chain. Innovation and precision engineering will be key differentiators.

Smart logistics and supply chain solutions are becoming as critical as manufacturing itself. Efficient movement of goods, through modern warehousing, cold chains, and digital logistics platforms—can dramatically reduce costs and enhance competitiveness. As e-commerce and industrial activity expand, India must invest in intelligent logistics systems that match global standards.

Finally, MSMEs remain the backbone of Indian manufacturing. With the right digital tools, targeted skilling, and easier access to credit, these enterprises can integrate into global value chains. Initiatives like ONDC (Open Network for Digital Commerce) offer a powerful platform to democratize market access, allowing small manufacturers to connect with global buyers and scale sustainably.

Strategies for success in an uncertain world

Building resilient supply chains is no longer optional, it’s a strategic imperative. Companies must diversify sourcing, invest in local vendor ecosystems, and deploy digital tools for real-time visibility and risk management. The traditional “just-in-time” model is giving way to a more robust “just-in-case” approach, where agility and preparedness define competitiveness.

Technology adoption is equally critical. As global manufacturing embraces Industry 4.0, driven by IoT, artificial intelligence, and robotics, India must accelerate its transition. MSMEs, which form the backbone of Indian manufacturing, often lack access to advanced technologies. Targeted government support and incentives can help bridge this gap, ensuring inclusive growth and enhanced productivity.

Sustainability is fast becoming a non-negotiable credential in global markets. Manufacturers must integrate energy efficiency, renewable power, and circular practices into their operations. Green manufacturing is not just about compliance; it’s about future-proofing businesses and meeting the expectations of carbon-conscious buyers worldwide.

India’s innovation ecosystem must also evolve. Despite its engineering depth, the country spends less than 1 per cent of its GDP on R&D, far below global leaders. To compete at scale, India must foster a culture of design thinking, intellectual property creation, and continuous innovation across industries.

Skilling and workforce productivity remain foundational challenges. While India’s demographic dividend offers scale, it must be matched with relevant skills. Industry-aligned skilling programs, mainstream apprenticeships, and stronger academia–industry linkages are essential to unlock true manufacturing potential.

Finally, global collaboration will be key to accessing new technologies, markets, and capital. India must proactively leverage Free Trade Agreements, joint ventures, and strategic partnerships to integrate into global value chains. In a world defined by interdependence, collaboration is the currency of competitiveness.

The road ahead: Atmanirbharta with global relevance

Global uncertainty is no longer a passing phase, it has become the defining backdrop of our times. From geopolitical shifts to climate disruptions and technological upheavals, volatility is the new normal. In this environment, India’s response must be anchored in resilience, adaptability, and bold ambition. The ability to navigate complexity while building long-term capacity will determine our place in the global manufacturing landscape.

The essence of ‘Make in India’ is not isolationist. It is a vision to build a globally competitive ecosystem rooted in India’s unique strengths. It calls for blending traditional craftsmanship with cutting-edge technology, scaling operations while embracing sustainability, and channelling local ingenuity toward global aspirations. It is about creating products that are not only made in India but trusted and valued across the world.

India has already demonstrated global leadership in IT and digital services. The next frontier is manufacturing, where scale, innovation, and strategic execution must converge. If India can transform today’s uncertainty into tomorrow’s opportunity, it will not only fortify its economy but also reshape its role in the global order, emerging as a manufacturing powerhouse with influence and credibility.

Atmanirbhar Bharat, in this context, goes beyond self-reliance. It is about becoming a dependable partner to the world, one that can deliver quality, consistency, and innovation at scale. This is the true promise of Indian manufacturing: resilient within our borders, and respected far beyond them.

About the author:

Rohit Chandra is the Co-Founder and CEO of OMC Power, where he is leading the company’s ambitious mission to transform India’s distributed renewable energy landscape with a sharp focus on profitability, scalability, and social impact. He has over 35 years of experience in the Indian telecom, power and energy sectors.

3 Blurbs

India’s ambitious target of achieving 500 GW of renewable energy capacity by 2030 is not just a climate commitment, it’s a manufacturing opportunity.

MSMEs remain the backbone of Indian manufacturing. With the right digital tools, targeted skilling, and easier access to credit, these enterprises can integrate into global value chains.

Sustainability is fast becoming a non-negotiable credential in global markets. Manufacturers must integrate energy efficiency, renewable power, and circular practices into their operations