From jugaad to juggernaut: Rewriting India's manufacturing story

Skilled workforce, favourable policies, booming market - the perfect storm for India's manufacturing boom

- Sujatha Vishnuraj

In the heart of one of the world’s fastest-growing economies, a silent revolution is underway. India is rapidly transforming into a global investment hub, with a spotlight on the burgeoning manufacturing sector. The sector is experiencing a surge, driven by a confluence of factors—government initiatives, rising domestic demand, and a renewed focus on global competitiveness. This has led to a significant increase in investment flows, both domestic and foreign, propelling the sector towards exciting new horizons.

Investments in the sector are experiencing a notable increase, with initiatives like ‘Make in India’ aiming to position the country as a global manufacturing hub. According to a report from the Ministry of Commerce and Industry, the annual production growth rate in the manufacturing industry reached 4.7% during the fiscal year 2023. Notably, India’s industrial production achieved a 16-month high in October 2023, registering a growth of 11.7% compared to a contraction of 4.1% in the same period the previous year, according to the data provided by the Ministry of Statistics & Programme Implementation.

Also, the data released by the National Statistical Office (NSO) indicates a significant upswing in the manufacturing sector’s output, which expanded by 10.4% in October 2023, rebounding from a contraction of 5.8% in the same month last year. Manufacturing output experienced a notable rise of 9.3% year-on-year in August, accompanied by a month-over-month increase of 1.2%.