India’s Manufacturing Story: Day 1
100 days to mastering India’s manufacturing revolution (Make sure you tag along)
Hi, I’m Abhishree, and I just jumped onto Parth Verma 100-day challenge by The Valuation School—pick an industry and go all in. That same day, I stumbled into a manufacturing rabbit hole without even trying.
Tesla manufacturing in India? iPhone 16e production shifting? "PLI boost in the new budget"—and what not!
Like most of us, I had a vague idea that the manufacturing industry is developing more than usual nowadays. Every other headline screamed about supply chains, the China+1 strategy, global players setting up shop, and massive government incentives. But beyond the hype, I hadn’t really connected the dots. Then took it up and observed that despite slow growth right now, the industry is silently building up to be the next economic pillar. Let’s get a gist of it in the day 1 of this series:
Day 1: What is Manufacturing for India?
Let’s start with the basics—not just a dictionary definition, but what manufacturing means for India.
While ancient India had a thriving manufacturing base—excelling in textiles, shipbuilding, metalwork, and artisanal crafts—our journey took a different turn over the centuries. India was once a major global exporter, with its finely woven muslin, steel, and spices finding markets across continents.
Ancient India was a global leader in textiles, shipbuilding, and metalwork.
Indian muslin, steel, and spices were highly sought after in international markets.
However, colonial rule disrupted this ecosystem, turning India into a supplier of raw materials rather than a producer of finished goods. The Industrial Revolution largely bypassed us, and post-independence, while there was an effort to rebuild, manufacturing remained constrained.
After independence, the focus was on self-sufficiency:
Large public sector enterprises were set up.
The private sector faced heavy regulations and licensing restrictions (License Raj).
Manufacturing remained small-scale, inefficient, and uncompetitive globally.
The turning point came in 1991 with economic liberalization. Opening up to foreign investments, easing regulations, and shifting towards a market-driven economy set the stage for growth. Yet, manufacturing did not take off the way services did. Unlike IT and finance, which scaled rapidly due to a skilled workforce and lower capital requirements, manufacturing needed strong infrastructure, political will, and policy continuity.
Manufacturing clusters have emerged across states—Maharashtra, Tamil Nadu, Gujarat, Telangana, Karnataka, Andhra Pradesh, and Uttar Pradesh—each specializing in industries like automotive, pharmaceuticals, electronics, textiles, and industrial machinery.
Fast Forward to Today: What’s the status now?
Manufacturing is emerging as a crucial pillar of India's economic expansion, fueled by strong performances in sectors like automotive, engineering, chemicals, pharmaceuticals, and consumer durables. With 17% of the nation’s GDP and over 27.3 million workers, the manufacturing sector plays a significant role in the Indian economy. Through the implementation of different programmes and policies, the Indian government hopes to have 25% of the economy’s output come from manufacturing by 2025.
India’s machine tool industry has historically been the backbone of manufacturing. Today, the sector is undergoing a massive transformation with automation, AI, and digitalization enhancing productivity and global competitiveness.
The shift towards Industry 4.0 is evident, with an increasing focus on process-driven and automated manufacturing to improve efficiency and production.
The HSBC Manufacturing PMI hit a 16-year high of 59.1 in March 2024, indicating robust growth in output, new orders, and job creation across various industries.
What’s the Global Status? : Manufacturing Industry Of India
India is on track to become a major global manufacturing hub, with projections of exporting goods worth $1 trillion by 2030.
FDI Growth – $165.1 billion in FDI inflows over the past decade, a 69% rise, driven by PLI schemes.
What are India’s Superpowers in the Manufacturing Space it can capitalize on?
India’s manufacturing sector is well-positioned to benefit from:
Raw materials, industrial expertise, and entrepreneurship supporting value chain development.
Four major market opportunities:
Expanding exports – Strengthening India's global footprint.
Localizing imports – Reducing dependence on foreign goods.
Growing domestic demand – Leveraging a vast consumer base.
Contract manufacturing – Increasing global collaborations.
India now has the infrastructure—both physical and digital—to become a key player in global supply chains. The government is offering incentives worth ₹18,000 crore ($2.2 billion) to boost manufacturing in six new sectors, including chemicals, shipping containers, and vaccine inputs.
Mobile phone manufacturing is a standout performer , creating 150,000–250,000 direct and indirect jobs in the next 12–16 months. Global giants like Apple and Dixon Technologies are expanding their workforce to meet rising demand.
I know this has been a lot to take in all at once, but since this was just an overview, I had to cover quite a few aspects. Over the next 99 days, we'll dive deeper into one facet of manufacturing at a time. I’m looking forward to this journey together, and I hope we both learn and grow along the way!
Good day ahead <3
100 days!! Just do it 💪