Make in India: Manufacturing Hub

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Make in India: Global Manufacturing Hub

India is rapidly becoming a global manufacturing hub with world-class infrastructure, skilled workforce, and attractive investment policies. Discover manufacturing opportunities.

Why India Is Emerging as a Global Manufacturing Hub

India is rapidly emerging as a global manufacturing hub with world-class infrastructure, a skilled workforce, and investor-friendly policies. Manufacturing currently contributes over 16% to India’s GDP, and the government aims to increase this share to 25% by 2030.

Through initiatives like “Make in India,” the government is strengthening industrial capacity and encouraging both domestic and foreign investment. Strategic reforms and incentive schemes are accelerating growth across key sectors.

India’s competitive labor costs, expanding logistics infrastructure, strong domestic demand, and growing export potential make it an attractive destination for global manufacturers.

Strategic advantages include:

  • Large skilled workforce  
  • Competitive labor costs 
  • 370+ operational industrial parks 
  • Strong domestic consumption market 
  • Growing export potential

Foreign Direct Investment (FDI) inflows exceeding $60 billion annually reflect global investor confidence in India’s industrial ecosystem.

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GDP Contribution

16%
Manufacturing to GDP

FDI Inflows

$62B
Annual FDI

Industrial Parks

370+
Operational Parks

Growth Target

25%
GDP Target by 2030

Priority Manufacturing Sectors

India has identified high-growth manufacturing sectors including

Electronics & Semiconductors
India is actively promoting semiconductor fabrication and electronics manufacturing through targeted incentives and infrastructure development. The government’s Production Linked Incentive (PLI) scheme supports mobile phone production, electronic components, and semiconductor assembly. With rising domestic demand and export opportunities, electronics manufacturing is becoming one of the fastest-growing industrial segments in India.
Automotive & EV
India is a global leader in automotive production and is rapidly expanding its electric vehicle (EV) ecosystem. Investments in battery manufacturing, EV components, and charging infrastructure are accelerating growth. Policy support for clean mobility and export-oriented production is positioning India as a key EV manufacturing hub in Asia.
Pharmaceuticals
India is known as the “Pharmacy of the World,” supplying affordable generic medicines globally. Strong capabilities in Active Pharmaceutical Ingredient (API) production and formulation manufacturing have made this sector highly competitive. Government incentives and infrastructure support continue to strengthen India’s pharmaceutical manufacturing base.

Investment Incentives

The Indian government offers structured financial and policy incentives to attract both domestic and foreign manufacturers.

Production Linked Incentives (PLI)

Government incentives of 4-6% on incremental sales for eligible manufacturing sectors.

Sector

  • Electronics & IT Hardware
  • Pharmaceuticals
  • Automotive & Auto Components

Local Partnerships

Partner with local system integrators and consulting firms to accelerate market entry.

Benefit

  • Land at concessional rates
  • Power subsidy up to 50%
  • Tax holiday up to 10 years

Manufacturing Setup Process

1. Site Selection

  • Industrial park evaluation

  • Infrastructure assessment

  • Proximity to ports/airports

  • Raw material availability
2. Approvals

  • Industrial license

  • Environmental clearance

  • Factory license

  • Fire safety certificate
3. Infrastructure

  • Facility construction

  • Utility connections

  • Equipment installation

  • Safety systems setup
4. Operations

  • Workforce hiring

  • Quality certifications

  • Supply chain setup

  • Production commencement

With increasing focus on self-reliance and export-led growth, India continues to strengthen its position as a global manufacturing powerhouse.

Why Global Companies Choose India for Manufacturing

India offers a unique combination of cost efficiency, skilled labor, and market access. Its expanding infrastructure, improving logistics networks, and strong policy backing make it suitable for both domestic manufacturing and export-oriented production.

With increasing emphasis on self-reliance, industrial corridors, and digitalization of regulatory processes, India is positioning itself as a long-term global manufacturing partner.

Companies that strategically leverage government incentives and local expertise can significantly reduce setup time and compliance risks while maximizing operational efficiency.


  • Political stability

  • Strong IP protection

  • English-speaking workforce

  • Expanding free trade agreements

  • Competitive operational costs

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Take advantage of India's manufacturing revolution. Get expert assistance with site selection, approvals, incentive applications, and end-to-end setup support.

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Frequently Asked Questions

How long does it take to set up a manufacturing unit in India?

Depending on sector and state regulations, setup timelines typically range from 3 to 9 months, including approvals and infrastructure development.

Is 100% foreign ownership allowed in manufacturing?

Yes, most manufacturing sectors permit 100% FDI under the automatic route, subject to specific sectoral conditions.

What is the PLI scheme?

The Production Linked Incentive scheme offers financial incentives on incremental sales to boost domestic manufacturing and exports.

What licenses are required to start manufacturing?

Common requirements include factory license, environmental clearance, industrial registration, and sector-specific approvals.