Navigating India's manufacturing landscape

Jibak Dasgupta, Director General and CEO, Indian Machine Tool Manufacturers' Association's view on the influx of investments and the manufacturing landscape

IMTMA Director General and CEO, Jibak Dasgupta, delves into the dynamic realm of India’s manufacturing sector, exploring the current investment climate, key factors driving growth, challenges faced by investors, and the pivotal role of the Indian Machine Tool Manufacturers’ Association (IMTMA). He sheds light on the opportunities and trends shaping one of the fastest-growing manufacturing landscapes in the world.

What is the current investment climate in the Indian manufacturing sector?

Amidst the global economic headwinds driven by high inflationary pressures and geopolitical uncertainties, the current investment climate in India looks positive and encouraging. Manufacturing output is likely to continue its positive trajectory in 2024 on the back of a high infra push by the Government of India and its PLI schemes notified for various industry sectors. PLI for electronics manufacturing for instance is expected to attract investments in phone manufacturing and specific electronics components, the results of which are already visible. Other key industry segments such as defence, pharma and healthcare, renewable energy, automobiles (including electric vehicles), information technology, artificial intelligence, fast-moving consumer goods, etc. are beckoning foreign investments.

Major examples include Foxconn for mobile manufacturing, Micron for semiconductor assembly and test facility, Tesla (in discussions) for automobile manufacturing, and other Japanese, Korean and Taiwanese firms aiming to set up industries. States are organising Global Investors’ Summits to woo industries to invest, most capital goods industries are growing with many of the private industries having plans to invest in augmenting and expanding their capacities.