External trends are turning the game in India’s favour as the manufacturing sector is ready to take an exponential growth across advanced industries.
India’s manufacturing sector is projected to contribute nearly 3% to global goods trade by 2030, up from the current 1.8%, according to a new report released by Accel. Domestically, manufacturing is expected to reach $1.3 trillion by FY30, growing at a CAGR of 18%, driven largely by advanced manufacturing capabilities.
Sectors that can expect maximum leap are electronics and electricals, aerospace and defence, automobiles, medical devices, chemicals, and space.
The main key players emerging are India’s $200 billion electronics sector, aided by brands like Apple, Dell, and HP shifting production to India. The automotive sector fueled by surplus EV sales in FY25, is set to grow at 11% CAGR as per report. Some businesses are already ready to expand outside, again giving a boost to overall growth.
The Accel report attributes this surge to favourable geopolitical shifts. With US-China tensions disrupting over $550 billion in trade, global powers are pursuing friend-shoring strategies. Policy support initiatives like India’s PLI scheme have bolstered India’s position as a China alternative.
Currently, India’s manufacturing GDP stands at $471 billion. A recent HSBC survey shows the sector is gaining momentum, with the Manufacturing PMI hitting a 16-month high of 59.1 in July, reflecting rising new orders and output. Meanwhile, an S&P Global study from May highlights India’s growing competitiveness and appeal to global investors.
However, still low R&D spend (0.7% of GDP), low employability, and weak university-industry linkages could hinder progress, the report says.
