Despite global economic disruptions caused by the pandemic and intensified by recent geopolitical events, India's manufacturing sector has displayed remarkable resilience, outpacing several major economies in growth. The Indian government has actively pursued its vision of an Atmanirbhar Bharat (self-reliant India), aiming to establish the country as a major global manufacturing hub—a role China has successfully held for years. China's dominance stemmed largely from Western companies capitalising on its low labour costs, making it a prime destination for large-scale manufacturing.

Today, China commands a significant share of global manufacturing. It leads the world in crude steel production, consistently producing an astonishing billion tonnes annually. The Chinese automotive industry also thrives, manufacturing nearly 26.1 million passenger cars per year—roughly 33 per cent of the global total (94 million vehicles annually). In comparison, India currently produces approximately 5 million passenger vehicles per annum. Additionally, China's manufacturing output reached an impressive $4,659 billion in 2023, whereas India's output stood at a considerably smaller $456 billion in the same year.

Achieving significant manufacturing growth requires substantial investment. For instance, establishing an integrated steel plant with a capacity of one million tonnes per annum (MTPA) demands around ? 50 billion. To meet the Indian government's ambitious target of expanding steel production capacity from 180 MTPA to 300 MTPA by 2030, India will need to invest approximately ? 1,000 billion (around $ 11.5 billion) annually over the next six years. Moreover, expanding industrial infrastructure at this scale requires about 400,000 skilled workers each year. However, India currently faces a shortage of adequately trained personnel for large-scale construction projects, presenting a challenge to steel capacity expansion. And this is just for one industry.

To increase the share of manufacturing to 21 per cent of India's GDP (from the present 16-17 per cent) within the next six to seven years, India has introduced strategic initiatives such as the Make in India, and Production-Linked Incentive (PLI) schemes. While these measures provide a strong foundation for growth, challenges such as outdated infrastructure, skill shortages, and limited investment in R&D persist. 

Adopting advanced manufacturing technologies will be critical to improving productivity, enhancing efficiency, and ensuring competitiveness on the global stage. However, equipping India's workforce with the necessary skills remains equally crucial. Despite efforts to generate employment, India continues to face rising unemployment, with rates reaching their highest levels in 45 years, states Amitabh Kant, India's G20 Sherpa and former CEO of NITI Aayog (in his exclusive interview in this Annual 2025 edition). 

Nonetheless, India’s manufacturing sector shows promising growth. Market projections indicate expansion from $310.3 billion in 2024 to $523.7 billion by 2029, reflecting a compound annual growth rate (CAGR) of 9.11 per cent. Foreign Direct Investment (FDI) inflows have surged by 69 per cent between 2014 and 2024, reaching a total of $165.1 billion. This trend is expected to continue as global manufacturers diversify their supply chains away from China, positioning India as an attractive alternative. 

As the world's most populous nation and a rapidly advancing economy, India aims to become a $7 trillion economy by 2030—a goal that reflects a broader vision of improved living standards, technological innovation, and global influence. However, whether India's current momentum is sufficient to meet these targets remains a pivotal question for policymakers and industry leaders alike.

In this 53rd Annual Edition of Smart Manufacturing & Enterprises (SME), more than 30 industry leaders delve into four key areas—government policies, advanced technologies, green manufacturing, and skill development—for developing India into a $ 1 trillion manufacturing economy. In addition, it also showcases over 280 products, including some newly launched products.

Year 2024 was challenging, yet exciting for the industry and SME. During the year, SME transitioned from product-centric publication to all-encompassing, solution-centric platform catering to the needs of every stakeholder of the manufacturing sector right from the factory shop floor to the boardroom and policy-influencers by raising industry-relevant issues such as skilled workforce, lack of funding, export challenges, etc. 

Year 2025 will be no different. With global markets becoming highly challenging, SME will continue to be the Indian industry's voice and engage with stakeholders for providing probable solutions. While we will bring out some special editions like "Hannover Messe 2025", "Women in Manufacturing Sector", "Top 100 Engineering Companies", "EMO 2025", etc, we will also be hosting events relevant to the manufacturing sector such as "MultiLogistix Expo 2025", "SME Summit 2026", etc during the year. Loaded with business-relevant information, SME will aid businesses, both small and big, to grow and spur India's economic growth.