India : The Next Global Manufacturing Hub
Amidst rising tariffs, shifting alliances, and protectionist policies, compounded by economic uncertainties and supply chain disruptions, large and mid-sized global corporations find themselves caught in a squeeze. The corporations face a unique challenge of remaining efficient and cost-competitive while continuing to offer the global population world-class products using superior new-age technologies.
India emerges as a prime alternative, offering competitive labour costs, a vast skilled workforce, coupled with robust economic growth (6.3% GDP growth in FY 2024–25). Its Production‑Linked Incentive (PLI) schemes across electronics, pharmaceuticals, and auto components reduce setup costs, while Special Economic Zones streamline approvals and provide tax benefits.
With a domestic market of 1.4 billion consumers, India provides local demand and supports exports. Establishing production in India allows companies to manage tariffs, access varied markets, and develop robust, adaptable operations.
Sector Highlights
Pharmaceuticals
Electronics & Semiconductors
Automotive
India Advantage: Compelling Benefits to Global Corporations
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Manufacturing wages in India amount to just 3% of U.S., compared to 20% in China, offering a significant cost arbitrage for labour-intensive production.Global studies have confirmed, China has moved into the mid-range of global labour costs. At the same time, India remains firmly at the lower end, further enhancing its appeal as a low-cost manufacturing base.
Additionally, India boasts one of the world’s largest pools of English-speaking and tech talent. Manufacturing PMI index (The Purchasing Managers’ Index) reports robust employment growth for ten consecutive months, reflecting sustained workforce expansion and adaptability.
India, being a home to 1.4 billion people, with 60% being in the working age, below 35 years of age, possesses a large pool of skilled & semi-skilled workforce. Various studies reflect, India is projected to produce 18 million STEM graduates annually by 2027, creating a vast pool of engineers, scientists, and technicians to support advanced Manufacturing, Product & and Process-driven Innovation and R&D.
Moreover, with 34% of its tertiary students selecting STEM disciplines, India now leads the world in total STEM graduate output, underpinning its capacity for innovation.
The Government of India has committed ₹1.97 lakh crore (≈US$28 billion) to Production‑Linked Incentive (PLI) schemes across 13 key sectors, aiming to boost local value addition and reduce import dependency. As of date Rs14,020 crore has already been disbursed under PLI for 10 strategic sectors, including electronics, pharmaceuticals, and auto components, lowering setup costs and improving ROI.
To date, 764 applications have been approved under PLI, spanning areas from electronics and telecom to pharmaceuticals and drones.
Special Economic Zones (SEZs) in India offer a 10-year Holiday under Income‑Tax Act Section 80‑IAB, exemption from customs and excise duties on authorised operations, and single‑window clearances, streamlining approvals for investors.
Developers can establish new SEZs via Form‑A applications to the Board of Approval, unlocking export rebates and further fiscal incentives tailored to global manufacturers.
Under the ambitious PM Gati Shakti Project, India announced three major multimodal rail corridors in February 2024, integrating railways, roads, and ports to accelerate freight movement and reduce transit times. Complementing rail upgrades, the National Industrial Corridor Development Programme leverages Gati Shakti to link roads, ports, and airports, ensuring efficient end-to-end logistics for manufacturers.
The 2024 Economic Survey reports 56 port projects valued at ₹41,480 crore, boosting handling capacity by 550 million tonnes per annum to support export growth.
With a population of 1.457 billion in 2025, India offers one of the world’s largest consumer bases, driving demand for electronics, automotive products, and healthcare solutions, etc.
A burgeoning middle class, coupled with 6.3% GDP growth in FY 2024–25, underpins strong domestic absorption and supports a “Make in India, Sell in India” strategy.
India’s democratic governance and non-aligned foreign policy reduce geopolitical risk, making it a stable choice for long-term investments amid global trade tensions. According to the World Bank, India ranks 63rd out of 190 economies in the Ease of Doing Business index, reflecting ongoing reforms to simplify regulations and protect investor interests.
India attracted US$ 17.96 billion in FDI equity inflows in FY 2023‑24, with US$ 11.54 billion mainly from the USA, Mauritius and Singapore. In 2023, inbound merger and acquisition deals totalled US$ 55 billion, driven by the automotive, electronics, and textiles sectors. Multinationals like Apple, Siemens, GE, Samsung Electronics, and PepsiCo have expanded manufacturing due to collaborative R&D and the production of high-quality goods meeting international standards.
India Advantage: Compelling Benefits to Global Corporations
We perform full analysis of the website and collect information.
1. Competitive Labour Costs:
Manufacturing wages in India amount to just 3% of U.S., compared to 20% in China, offering a significant cost arbitrage for labour-intensive production.
Global studies have confirmed, China has moved into the mid-range of global labour costs. At the same time, India remains firmly at the lower end, further enhancing its appeal as a low-cost manufacturing base.
Additionally, India boasts one of the world’s largest pools of English-speaking and tech talent. Manufacturing PMI index (The Purchasing Managers’ Index) reports robust employment growth for ten consecutive months, reflecting sustained workforce expansion and adaptability.
2. Abundant & Diverse Talent Pool:
India, being a home to 1.4 billion people, with 60% being in the working age, below 35 years of age, possesses a large pool of skilled & semi-skilled workforce. Various studies reflect, India is projected to produce 18 million STEM graduates annually by 2027, creating a vast pool of engineers, scientists, and technicians to support advanced Manufacturing, Product & and Process-driven Innovation and R&D.
Moreover, with 34% of its tertiary students selecting STEM disciplines, India now leads the world in total STEM graduate output, underpinning its capacity for innovation.
3. Government‑Backed Incentives:
The Government of India has committed ₹1.97 lakh crore (≈US$28 billion) to Production‑Linked Incentive (PLI) schemes across 13 key sectors, aiming to boost local value addition and reduce import dependency.
As of date, ₹14,020 crore has already been disbursed under PLI for 10 strategic sectors, including electronics, pharmaceuticals, and auto components, lowering setup costs and improving ROI.
To date, 764 applications have been approved under PLI, spanning areas from electronics and telecom to pharmaceuticals and drones.
4. Special Economic Zones:
Special Economic Zones (SEZs) in India offer a 10-year Holiday under Income Tax Act Section 80 IAB, exemption from customs and excise duties on authorised operations, and single window clearances, streamlining approvals for investors.
Developers can establish new SEZs via Form A applications to the Board of Approval, unlocking export rebates and further fiscal incentives tailored to global manufacturers.
5. World‑Class Infrastructure:
Under the ambitious PM Gati Shakti Project, India announced three major multimodal rail corridors in February 2024, integrating railways, roads, and ports to accelerate freight movement and reduce transit times. Complementing rail upgrades, the National Industrial Corridor Development Programme leverages Gati Shakti to link roads, ports, and airports, ensuring efficient end-to-end logistics for manufacturers.
The 2024 Economic Survey reports 56 port projects valued at ₹41,480 crore, boosting handling capacity by 550 million tonnes per annum to support export growth.
6. Massive Growing Domestic Market:
With a population of 1.457 billion in 2025, India offers one of the world’s largest consumer bases, driving demand for electronics, automotive products, and healthcare solutions, etc.
A burgeoning middle class, coupled with 6.3% GDP growth in FY 2024–25, underpins strong domestic absorption and supports a “Make in India, Sell in India” strategy.
7. Political Stability & Ease of Doing Business:
India’s democratic governance and non-aligned foreign policy reduce geopolitical risk, making it a stable choice for long-term investments amid global trade tensions. According to the World Bank, India ranks 63rd out of 190 economies in the Ease of Doing Business index, reflecting ongoing reforms to simplify regulations and protect investor interests.
8. Rising Foreign Direct Investment and Industry Partnerships:
India attracted US$ 17.96 billion in FDI equity inflows in FY 2023‑24, with US$ 11.54 billion mainly from the USA, Mauritius, and Singapore. In 2023, inbound merger and acquisition deals totalled US$ 55 billion, driven by the automotive, electronics, and textiles sectors. Multinationals like Apple, Siemens, GE, Samsung Electronics, and PepsiCo have expanded manufacturing due to collaborative R&D and the production of high-quality goods meeting international standards.
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