OPINION | India's Manufacturing Moment: Shaping the factories of tomorrow

India’s manufacturing transformation is already underway.

India’s manufacturing story is entering an exciting phase. The country is shifting from being just a base for large-scale, low-cost production to becoming a hub for advanced, technology-driven manufacturing.

The momentum has been building steadily. The sector now contributes about 17% of India’s GDP, and the government aims to raise it to 25% over the next few years through various initiatives like Make in India and Aatmanirbhar Bharat. India’s manufacturing gross value added (GVA) stood at around ₹24.6 lakh crore in 2023-24, up from ₹14.8 lakh crore in 2019-20, indicating steady growth.

As global supply chains continue to change due to geopolitical shifts, India’s scale, skilled workforce, and supportive policies provide an advantage. The opportunity ahead is not just to produce more, but to produce smarter.

Technology is changing the factory floor

Across industries, factories are becoming more digital, efficient, and connected. Machines once operated manually are being guided by sensors, software, and real-time data. This digital transformation is reshaping how products are designed, assembled, and delivered.

AI and machine learning help manufacturers predict machine failures, plan maintenance better, and reduce downtime. Robotics is speeding up production lines while ensuring precision. The Internet of Things (IoT) allows machines to talk to each other, sharing real-time data to optimise operations and energy use.

Another innovative concept is the digital twin which is a virtual replica of physical assets and processes. It helps engineers simulate and fix issues before production even begins which results in faster product design, fewer errors, and lower costs.

The talent shift

While technology drives this transformation, it is people who make it possible. As factories get smarter, the need for skilled workers who can manage and maintain these new systems is growing.

The transition to electric mobility, for instance, is creating completely new job roles in battery engineering, power electronics, and smart automation. Studies suggest the auto industry alone will need around two lakh skilled workers by 2030 to meet India’s 30% EV adoption goal.

Yet, almost half the skills needed for EVs and Industry 4.0 technologies are new and cannot be transferred from traditional manufacturing. This gap means India needs to train its workforce better by aligning education, skill programmes, and on-the-job training with what new industries actually need.

Corridors of growth

India’s rise as a manufacturing hub is also being driven by large-scale industrial corridors and clusters that are reshaping the country’s economic geography.

Projects such as the Delhi-Mumbai Industrial Corridor (DMIC), Chennai-Bengaluru Industrial Corridor (CBIC), and Amritsar-Kolkata Industrial Corridor (AKIC) are connecting key production centres with ports, highways, and logistics hubs. These corridors aim at creating integrated manufacturing ecosystems comprising ready infrastructure, plug-and-play facilities, and skill development centres. Together, they are making India a stronger link in the global value chain and improving the ease of doing business for manufacturers of all sizes.

Policy push

One of the biggest drivers of India's manufacturing growth story has been policy support. The Production Linked Incentive (PLI) schemes launched across sectors, from electronics and semiconductors to auto components and renewable energy, are encouraging local production of high-value goods. For example, the PLI scheme for Advanced Chemistry Cell (ACC) batteries is helping companies build capacity in energy storage, while the PLI for auto and components is driving innovation in electric mobility.

Alongside this, the government’s PM GatiShakti National Master Plan is improving logistics efficiency by integrating road, rail, and port infrastructure. Lower logistics costs mean Indian manufacturers can compete more on the global stage.

The road ahead

India’s manufacturing sector is projected to reach US$ 1 trillion in FY26 and potentially add more than US$ 500 billion annually to the global economy by 2030. This is a clear signal that the country’s industrial base is expanding not just in scale but also in capability. However, to fully capture this potential, the sector needs to focus on these key trends:

* Global integration: To compete globally, operations that can deliver consistent quality, cost efficiency, and timely delivery must be built.

* Advanced manufacturing: The next wave of growth will come from high-value sectors like semiconductors, defence, industrial robotics, and precision electronics. These are areas where India can move up the value chain and create long-term value.

* Sustainable growth: The future of manufacturing will be sustainable. From battery recycling to energy-efficient production, circular manufacturing models can lower costs and reduce environmental impact.

India’s manufacturing transformation is already underway. The country has the scale, policy support, and skilled talent to lead this change. The focus now needs to be on how fast the industry is able to execute this, by strengthening its industrial corridors, adopting technology even faster, and making investments in continuous skill development.

Companies like Amara Raja, with a focus on smart factories and automation, show what this future looks like- efficient, digital, and sustainable.

If India keeps up this pace, “Made in India” could stand for not just scale, but smart, world-class manufacturing.

(Harshavardhana Gourineni, Executive Director- Automotive and Industrial, Amara Raja Energy & Mobility Limited.)

Views are personal, and do not represent the stand of this publication.