India’s manufacturing ecosystem is entering a decisive phase. Supply-chain shocks and concerns around economic security have brought manufacturing back to the centre of the economic conversation.
Across the world, governments are reassessing industrial capacity, supply chains and economic resilience. Earlier this June, US Treasury Secretary Scott Bessent had said, “A nation that cannot produce what it needs cannot be truly secure. A nation dependent on others for essential inputs, especially adversaries, risks its sovereignty and prosperity”.
Prime Minister Narendra Modi’s Make in India initiative, launched in September 2014, recognised this trend early. Over 12 years later, on our 80th Independence Day, he said the world has virtually junked globalisation and underlined that the country needs to build a strong manufacturing base.
It is why this India@100 Manufacturing Special edition asks: can manufacturing become the foundation of a truly developed India?
With Deloitte India as the knowledge partner for the company analysis, the issue identifies listed and unlisted companies that are leading India’s manufacturing transformation.
The state analysis by the Business Today research team uses five- and 10-year data from the Annual Survey of Industries, the Reserve Bank of India, and the Ministry of Commerce to identify leading states across seven parameters, including factories, exports, and manufacturing gross value addition.
The picture that emerges is that India’s manufacturing race is now a competitive federal contest.
Tamil Nadu is the country’s manufacturing powerhouse, combining a strong factory base with employment generation and export momentum. Gujarat remains an industrial giant, leading in investment, exports and manufacturing contribution to the state economy. Uttar Pradesh has emerged as a major challenger, supported by infrastructure growth, rising number of factories and job creation. The emergence of states such as Haryana, Telangana, Bihar, Assam and Chhattisgarh in specific sectors shows that manufacturing is spreading beyond traditional hubs.
Another section identifies the districts that are centres of production and exports. This analysis, by How India Lives, highlights leading manufacturing districts, emerging clusters and major industrial locations.
The cover story by Surabhi examines both the promise and the constraints of India’s manufacturing ambitions. Despite reforms and incentives, manufacturing’s share of GDP remains around 16%, held back by various challenges and restrictions. Yet, the transformation on the ground is visible, with new industrial clusters, expanding supply chains and companies, new and old, investing in building manufacturing capacity. Elsewhere, Krishna Gopalan argues that India’s journey must follow its own path. The country does not need to replicate China’s model.
India’s manufacturing moment has arrived.
The next challenge is to convert this momentum into a lasting engine of growth for India in 2047.
@szarabi
