India is charting an ambitious course to transform into a global industrial powerhouse. Projections indicate a remarkable shift, aiming for manufacturing’s share of India’s Gross Domestic Product (GDP) to surge from its current ~17% to a robust 25% by 2047. This strategic elevation underscores a national resolve to enhance economic resilience, foster innovation, and create a sustainable growth trajectory.
Catalyzing Growth: Key Sectors Driving India’s Manufacturing Ambition
This monumental aspiration is anchored by high-potential sectors poised to unlock a staggering $25 trillion industrial opportunity by 2047. Expert analyses pinpoint electronics, defence, automotive and electric vehicles (EVs), energy, and pharmaceuticals as pivotal engines. These sectors are crucial for deepening India’s integration into global supply chains and elevating its status as a manufacturing hub.
The Electronics Revolution: From Assembly to Innovation
India’s electronics manufacturing landscape is experiencing an unparalleled boom. Semiconductor demand is projected to skyrocket from $33 billion in 2022 to an impressive $117 billion by 2030. Over 99% of mobile phones sold domestically are now produced within the country, a stark contrast to just 26% in 2014-15, largely attributed to impactful Production Linked Incentive (PLI) schemes.
This transformation signifies more than just scale; India is evolving beyond mere assembly. It’s actively engaging in designing, innovating, and cementing its position within complex global value chains, crucial for long-term leadership in the global electronics market.
Accelerating Towards Electric Mobility
The electric vehicle (EV) segment is another critical area propelling India’s manufacturing growth. A significant surge in EV sales, from ~50,000 units in 2016 to over 2 million in 2024, demonstrates rapid adoption. This momentum also presents a substantial $100 billion export opportunity in auto components, signaling India’s potential as a key global EV supply chain player. Visionary policy decisions combined with accelerating domestic demand are laying a robust foundation for India to lead across various sectors.
Furthermore, regional manufacturing clusters dedicated to defence, EVs, and semiconductors in locations like Noida-Chennai-Hosur and Dholera are powerful catalysts. These foster co-location of suppliers, shared research laboratories, and optimized logistics, creating an integrated ecosystem conducive to innovation and efficient production.
Forging Ahead with Deep Tech and Innovation
To sustain this incredible momentum, India recognizes the imperative of investing in “deep tech” manufacturing. This necessitates scaling research and development (R&D), strengthening the talent pool through skill development, and cultivating world-class cluster ecosystems. Enhancing private-sector and startup participation is paramount, fostering an environment where groundbreaking technologies can flourish.
Realizing ‘Viksit Bharat 2047’ is intrinsically linked to success in advanced manufacturing and deep technology. Experts advocate for mobilizing India’s vast PhD talent, domestically and within the Indian diaspora. Targeted policies to help deep-tech startups achieve revenue generation faster are crucial to unlock their full potential and contribute significantly to India’s industrial future.
Disclaimer
The information provided in this blog post is based on publicly available reports and expert opinions. While efforts have been made to ensure accuracy, projections are subject to market dynamics, policy changes, and unforeseen factors. Readers are advised to conduct their own due diligence before making any investment decisions.
Image Credit: Financial Express
