India has made strides in increasing the appeal of its manufacturing sector to foreign investors, and sustained adjustments to international trade policy will ultimately help India. India can take advantage of this momentum to increase global supply chain integration and accelerate industrial expansion.
More investment should be drawn to the industry by a deliberate move towards local sourcing, close proximity to end markets, and improved regional integration. This will boost India’s manufacturing competitiveness and technological advancement while also adding more high-quality manufacturing jobs.
Changes in international trade policy will encourage supply-chain diversity in the long run, which would be advantageous to India. India’s industrial sector has become “more attractive to global investors” and the country has achieved “notable progress” in increasing its competitiveness.
Even though real GDP growth slowed in fiscal 2024–2025, India is still the largest economy with the greatest rate of growth in the world. Although it is not immune to the growing trade protectionism, India’s limited reliance on external trade for growth helps to buffer it from continuous changes in global trade and tariff policy. Even while manufacturing value added only makes up 17.2% of the nation’s real GDP, the government has put specific policy changes into place to increase local manufacturing capacity and fortify India’s position in international supply chains.
Elevated frequency When compared to other major economies, the domestic manufacturing sector has been resilient to recent global challenges, according to statistics from the HSBC Purchasing Managers’ Index (PMI).