Indian manufacturing market has the potential to reach US$ 1 trillion by 2025-26
- IBEF
- December 14, 2023
The manufacturing sector in India is experiencing a notable surge in investment, marking a pivotal phase in the country's economic landscape as major manufacturing entities establish their presence in India.
The automotive sector, a cornerstone of India's manufacturing capabilities, has attracted significant attention from global players such as Tesla and Ford, signalling their intentions to either establish or expand manufacturing operations within the country. Additionally, there has been an upswing in investments in electronics manufacturing, with a particular focus on smartphone production.
Key players like Apple's contract manufacturers have established assembly units in India, indicating a shift towards local production strategies. The textiles and garment manufacturing sectors have also experienced a surge in investment activities, with several global brands reassessing their sourcing strategies and investing in Indian textile units to leverage the country's competitive advantages in this domain. The Indian government is actively creating a conducive environment for global manufacturing companies through strategic initiatives such as the Bharatmala Pariyojana Project, the proposed DESH Bill, National Logistics Policy, and providing appropriate taxation and incentives for various sectors. This has significantly enhanced opportunities in the industrial market. Indian states are also offering various advantages to industrial players, including incentives, subsidies, robust infrastructure, and essential utilities, fostering a favourable environment for industrial growth.
In recent investments, Toyota plans to invest approximately Rs. 3,300 crore (US$ 395.71 million) in Gujarat, while Taiwanese manufacturer Foxconn aims to invest an additional Rs. 13,911 crore (US$ 1.66 billion) in a manufacturing facility in Doddaballapur, near Bangalore.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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