Drivers for making India a $ 1 trn manufacturing economy

  • Articles
  • Feb 16,23
Manufacturing is emerging as an integral pillar in the country’s economic growth. Samir Gandhi and Kartik Gandhi share their Vision 2025 for the Indian manufacturing sector.
Drivers for making India a $ 1 trn manufacturing economy

Both the Government of India and Indian companies recognise the need to move forward to the next and latest phase of industry.

The National Manufacturing Policy of the Government of India aims to increase the share of manufacturing in GDP to 25 percent by 2025. The “Make in India” policy of the Government of India is expected to increase the demand and consumption for machinery and equipment by the local manufacturing industry. Implemented from 2022, the Production-linked incentive (PLI) scheme was launched by the Government of India to develop 13 sectors on par with global manufacturing standards.

The trillion-dollar manufacturing exports opportunity
Propelled by growth in priority sectors and driven by favourable megatrends, India’s manufacturing sector has opened itself into new geographies and segments. Things are going to get even better buoyed by the government’s robust policy thrust, initiatives like production-linked incentives (PLIs) to encourage local manufacturing, and fresh investments that are pouring into the country’s core industrial sectors. With India emerging as a hub for manufacturing, cutting-edge technology and best-in-class workforce are being deployed in the country’s manufacturing domain, giving further impetus to India’s strengths on cost efficiency. Manufacturing is emerging as an integral pillar in the country’s economic growth, thanks to the performance of key sectors like automotive, engineering, chemicals, pharmaceuticals, and consumer durables.


India is an attractive hub for foreign investments in the manufacturing sector. Several mobile phone, luxury and automobile brands, among others, have set up or are looking to establish their manufacturing bases in the country. The manufacturing sector of India has the potential to reach $ 1 trillion by 2025.

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 competitiveness of the manufacturing sector in the capital goods market. With impetus on developing industrial corridors and smart cities, the Government aims to ensure holistic development of the nation. The corridors would further assist in integrating, monitoring and developing a conducive environment for the industrial development and will promote advance practices in manufacturing.

In India, the manufacturing sector has grown significantly over the years, and it is expected to continue to play a major role in the country's economic development. Factors such as increased exports, new opportunities for manufacturers, the growth of specific industries or segments, the adoption of advanced technologies and processes, the contribution of SMEs, and government policies can all impact the growth of the manufacturing sector.

Some of the factors that may contribute to the growth of the manufacturing sector in India include:

  • Increased exports: The Indian manufacturing sector has the potential to increase its exports to other countries, which can help to drive economic growth.
  • New opportunities for Indian manufacturers: As the global economy changes and evolves, new opportunities may emerge for Indian manufacturers to enter new markets or to produce new types of goods.
  • Growth propellers: There are several industries and segments that may be growth propellers for the Indian manufacturing sector, such as automotive, aerospace, pharmaceuticals, and renewable energy.
  • Manufacturing technologies/processes: The adoption of advanced technologies and processes in the manufacturing sector can increase efficiency and productivity, which can help to drive economic growth.
  • SMEs contribution: Small and medium-sized enterprises (SMEs) can play a significant role in the growth of the Indian manufacturing sector. They may be more agile and able to adapt to changing market conditions, and they may also be more innovative and able to bring new products and services to the market.
  • Government policies: Government policies and initiatives can also impact the growth of the manufacturing sector in India. For example, the government may implement policies to encourage the adoption of advanced technologies or to support the growth of specific industries.
  • About the authors:


    Samir Gandhi is the Director at Gandhi Automations Pvt Ltd - one of the leading players in entrance automation and loading bay equipment space.


    Kartik Gandhi is the Director at Gandhi Automations Pvt Ltd.
    Since its inception in 1996, Gandhi Automations has been specialising in designing, manufacturing, exporting and installing products that are problem free and easy to operate. The products conform to the highest safety standards complemented with reliability and energy efficiency.

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