India is steadily positioning itself as a global manufacturing powerhouse. With strategic  government policies, a rapidly growing industrial base, and advancements in  technology, the country is emerging as the destination of choice for manufacturing.  Initiatives spearheaded by DPIIT, Startup India and programs of Make in India,  Production Linked Incentive (PLI) schemes, and China+1 strategies are catalyzing a  transformation that promises to reshape not only India’s economy but also the global  manufacturing landscape. 

India: The Next Global Manufacturing Destination 

India’s manufacturing sector offers several key advantages that make it attractive to  global players. A highly skilled and diverse workforce, combined with exceptional talent,  a growing domestic market, and a strategic geographic location, position India as a  pivotal player in global supply chains. Sectors like aerospace, electronics, medical  devices, and renewable energy are witnessing unprecedented growth, driven by robust  policy support and increasing foreign investment. 

India’s manufacturing ambitions are supported by its strong economic fundamentals.  The government’s vision to increase manufacturing’s contribution to GDP from 17% in  2022 to 25% by 2025 demonstrates its commitment to industrialization. With initiatives  targeting infrastructure, digital transformation, and skill development, India is preparing  to lead in advanced manufacturing. 

Policies Driving India’s Manufacturing Growth

1. Make in India: Launched in 2014, this flagship initiative aims to position India as  a global manufacturing hub. By simplifying regulatory processes, encouraging  foreign investment, and fostering innovation, Make in India has created an  ecosystem where businesses can thrive. The establishment of industrial  corridors and clusters has further streamlined operations for manufacturers. 

2. Production Linked Incentive (PLI) Schemes: These schemes provide financial  incentives to companies in critical sectors such as electronics,  

pharmaceuticals, and renewable energy. The government’s focus on boosting  domestic production and reducing reliance on imports has attracted significant  investments. For example, the electronics manufacturing sector alone has seen  a surge in production under the PLI scheme. 

3. China+1 Strategy: As global companies seek to diversify their supply chains  away from China, India has emerged as a natural alternative. With its stable  political environment, skilled workforce, and growing industrial base, India is  becoming a preferred destination for global manufacturers. This strategy has  particularly benefited sectors like pharmaceuticals, consumer electronics, and  precision engineering. 

4. Atmanirbhar Bharat (Self-Reliant India): This initiative emphasizes domestic  production and reducing dependency on imports, particularly in defense,  aerospace, and critical infrastructure. Policies under Atmanirbhar Bharat aim to  create a robust indigenous manufacturing ecosystem while fostering innovation  and entrepreneurship. 

Industry 4.0: Transforming Indian Manufacturing 

Industry 4.0 is revolutionizing global manufacturing, and India is no exception. By  integrating technologies like IoT, AI, and robotics, Indian manufacturers are enhancing  efficiency, reducing costs, and improving product quality. The adoption of smart  factories and digital tools has become increasingly prevalent, with government support  enabling small and medium enterprises (SMEs) to embrace these advancements. 

Companies such as Ethereal Machines, a DPIIT recognised startup are leading this  transformation. With its smart factory operations in Bengaluru and proprietary CNC  platforms, Ethereal Machines showcases how Industry 4.0 technologies are  revolutionizing precision manufacturing. These innovations enhance operational  efficiency, enable real-time decision-making, and support predictive maintenance,  strengthening India’s global competitiveness in advanced manufacturing. 

Sustainability and Green Manufacturing 

As the world moves toward sustainable practices, India’s manufacturing sector is  aligning itself with global environmental goals. The government’s commitment to 

achieving net-zero emissions by 2070 underscores its focus on green industrialization.  Policies like the National Solar Mission and incentives for renewable energy adoption in  manufacturing are fostering sustainable growth. 

Green manufacturing practices are being integrated into various industries, with a focus  on reducing waste and optimizing resource utilization. The adoption of energy-efficient  machinery and renewable energy sources is becoming a norm across the  manufacturing landscape, ensuring long-term sustainability. 

The Role of Precision Engineering 

Precision engineering is the backbone of advanced manufacturing and a critical enabler  of India’s growth ambitions. Sectors like aerospace, defense, and medical devices rely  heavily on high-quality precision components. India’s focus on developing supply chain  resiliency in these sectors is opening up significant opportunities for domestic  manufacturers. 

Advanced CNC machining is revolutionizing manufacturing by enhancing efficiency,  reducing production times, and lowering costs for businesses. By delivering precision  components that meet international standards, Ethereal Machines demonstrates how  cutting-edge technology is driving competitiveness and shaping the future of the  industry. 

Startup India: Driving Innovation and Growth 

Since its inception in 2016, when it supported around 471 recognized startups, Startup  India has played a pivotal role in transforming India into a global hub for innovation and  entrepreneurship. By the end of 2024, this number has grown exponentially to over  100,000 recognized startups, showcasing the program’s success in fostering a robust  startup ecosystem. The initiative has spurred job creation, attracted significant  investments, and empowered a new generation of entrepreneurs. By focusing on  reducing regulatory burdens, providing access to funding, and encouraging  collaboration between industries and academia, Startup India has laid the foundation  for sustained economic growth. This initiative has been instrumental in driving  transformation across sectors such as IT, e-commerce, healthcare, and renewable  energy, creating a ripple effect of innovation that strengthens India’s position in the  global economy. 

Startup India’s Impact on Manufacturing 

Startup India has been a catalyst for innovation in manufacturing, driving the adoption  of advanced technologies like robotics, 3D printing, and IoT-driven automation. By  fostering partnerships between traditional manufacturers and agile startups, it has  helped integrate cutting-edge solutions into legacy systems. Streamlined processes for  setting up businesses have enabled entrepreneurs to tackle key challenges such as 

cost efficiency and sustainability, boosting productivity and positioning India as a global  manufacturing leader. 

Conclusion 

India is poised to lead the global manufacturing revolution, driven by visionary policies,  technological advancements, and a growing industrial base. With initiatives like Make in  India and PLI schemes, the government is creating an environment where  manufacturers can thrive. Startup India plays a crucial role in this transformation by  nurturing startups in the manufacturing sector, providing them with access to funding,  mentorship, and streamlined regulatory processes. This support has led to a  mushrooming of manufacturing startups that leverage cutting-edge technologies,  fostering innovation and addressing critical industry challenges. Beneficiary Companies  like Ethereal Machines underscore India’s potential by combining innovation and  precision to meet global standards. 

With Industry 4.0 technologies and sustainability taking center stage, India’s  manufacturing sector is not only aligning with global benchmarks but setting new ones.  The next decade will be pivotal, offering an opportunity to address existing challenges  and capitalize on its strengths. By doing so, India is well-positioned to achieve its  ambitious goal of a $1 trillion manufacturing economy by 2030 and emerge as a global  leader in advanced manufacturing.

India is steadily positioning itself as a global manufacturing powerhouse. With strategic  government policies, a rapidly growing industrial base, and advancements in  technology, the country is emerging as the destination of choice for manufacturing.  Initiatives spearheaded by DPIIT, Startup India and programs of Make in India,  Production Linked Incentive (PLI) schemes, and China+1 strategies are catalyzing a  transformation that promises to reshape not only India’s economy but also the global  manufacturing landscape. 

India: The Next Global Manufacturing Destination 

India’s manufacturing sector offers several key advantages that make it attractive to  global players. A highly skilled and diverse workforce, combined with exceptional talent,  a growing domestic market, and a strategic geographic location, position India as a  pivotal player in global supply chains. Sectors like aerospace, electronics, medical  devices, and renewable energy are witnessing unprecedented growth, driven by robust  policy support and increasing foreign investment. 

India’s manufacturing ambitions are supported by its strong economic fundamentals.  The government’s vision to increase manufacturing’s contribution to GDP from 17% in  2022 to 25% by 2025 demonstrates its commitment to industrialization. With initiatives  targeting infrastructure, digital transformation, and skill development, India is preparing  to lead in advanced manufacturing. 

Policies Driving India’s Manufacturing Growth

1. Make in India: Launched in 2014, this flagship initiative aims to position India as  a global manufacturing hub. By simplifying regulatory processes, encouraging  foreign investment, and fostering innovation, Make in India has created an  ecosystem where businesses can thrive. The establishment of industrial  corridors and clusters has further streamlined operations for manufacturers. 

2. Production Linked Incentive (PLI) Schemes: These schemes provide financial  incentives to companies in critical sectors such as electronics,  

pharmaceuticals, and renewable energy. The government’s focus on boosting  domestic production and reducing reliance on imports has attracted significant  investments. For example, the electronics manufacturing sector alone has seen  a surge in production under the PLI scheme. 

3. China+1 Strategy: As global companies seek to diversify their supply chains  away from China, India has emerged as a natural alternative. With its stable  political environment, skilled workforce, and growing industrial base, India is  becoming a preferred destination for global manufacturers. This strategy has  particularly benefited sectors like pharmaceuticals, consumer electronics, and  precision engineering. 

4. Atmanirbhar Bharat (Self-Reliant India): This initiative emphasizes domestic  production and reducing dependency on imports, particularly in defense,  aerospace, and critical infrastructure. Policies under Atmanirbhar Bharat aim to  create a robust indigenous manufacturing ecosystem while fostering innovation  and entrepreneurship. 

Industry 4.0: Transforming Indian Manufacturing 

Industry 4.0 is revolutionizing global manufacturing, and India is no exception. By  integrating technologies like IoT, AI, and robotics, Indian manufacturers are enhancing  efficiency, reducing costs, and improving product quality. The adoption of smart  factories and digital tools has become increasingly prevalent, with government support  enabling small and medium enterprises (SMEs) to embrace these advancements. 

Companies such as Ethereal Machines, a DPIIT recognised startup are leading this  transformation. With its smart factory operations in Bengaluru and proprietary CNC  platforms, Ethereal Machines showcases how Industry 4.0 technologies are  revolutionizing precision manufacturing. These innovations enhance operational  efficiency, enable real-time decision-making, and support predictive maintenance,  strengthening India’s global competitiveness in advanced manufacturing. 

Sustainability and Green Manufacturing 

As the world moves toward sustainable practices, India’s manufacturing sector is  aligning itself with global environmental goals. The government’s commitment to 

achieving net-zero emissions by 2070 underscores its focus on green industrialization.  Policies like the National Solar Mission and incentives for renewable energy adoption in  manufacturing are fostering sustainable growth. 

Green manufacturing practices are being integrated into various industries, with a focus  on reducing waste and optimizing resource utilization. The adoption of energy-efficient  machinery and renewable energy sources is becoming a norm across the  manufacturing landscape, ensuring long-term sustainability. 

The Role of Precision Engineering 

Precision engineering is the backbone of advanced manufacturing and a critical enabler  of India’s growth ambitions. Sectors like aerospace, defense, and medical devices rely  heavily on high-quality precision components. India’s focus on developing supply chain  resiliency in these sectors is opening up significant opportunities for domestic  manufacturers. 

Advanced CNC machining is revolutionizing manufacturing by enhancing efficiency,  reducing production times, and lowering costs for businesses. By delivering precision  components that meet international standards, Ethereal Machines demonstrates how  cutting-edge technology is driving competitiveness and shaping the future of the  industry. 

Startup India: Driving Innovation and Growth 

Since its inception in 2016, when it supported around 471 recognized startups, Startup  India has played a pivotal role in transforming India into a global hub for innovation and  entrepreneurship. By the end of 2024, this number has grown exponentially to over  100,000 recognized startups, showcasing the program’s success in fostering a robust  startup ecosystem. The initiative has spurred job creation, attracted significant  investments, and empowered a new generation of entrepreneurs. By focusing on  reducing regulatory burdens, providing access to funding, and encouraging  collaboration between industries and academia, Startup India has laid the foundation  for sustained economic growth. This initiative has been instrumental in driving  transformation across sectors such as IT, e-commerce, healthcare, and renewable  energy, creating a ripple effect of innovation that strengthens India’s position in the  global economy. 

Startup India’s Impact on Manufacturing 

Startup India has been a catalyst for innovation in manufacturing, driving the adoption  of advanced technologies like robotics, 3D printing, and IoT-driven automation. By  fostering partnerships between traditional manufacturers and agile startups, it has  helped integrate cutting-edge solutions into legacy systems. Streamlined processes for  setting up businesses have enabled entrepreneurs to tackle key challenges such as 

cost efficiency and sustainability, boosting productivity and positioning India as a global  manufacturing leader. 

Conclusion 

India is poised to lead the global manufacturing revolution, driven by visionary policies,  technological advancements, and a growing industrial base. With initiatives like Make in  India and PLI schemes, the government is creating an environment where  manufacturers can thrive. Startup India plays a crucial role in this transformation by  nurturing startups in the manufacturing sector, providing them with access to funding,  mentorship, and streamlined regulatory processes. This support has led to a  mushrooming of manufacturing startups that leverage cutting-edge technologies,  fostering innovation and addressing critical industry challenges. Beneficiary Companies  like Ethereal Machines underscore India’s potential by combining innovation and  precision to meet global standards. 

With Industry 4.0 technologies and sustainability taking center stage, India’s  manufacturing sector is not only aligning with global benchmarks but setting new ones.  The next decade will be pivotal, offering an opportunity to address existing challenges  and capitalize on its strengths. By doing so, India is well-positioned to achieve its  ambitious goal of a $1 trillion manufacturing economy by 2030 and emerge as a global  leader in advanced manufacturing.