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India is emerging as one of the key beneficiaries of the global shift in manufacturing as companies diversify supply chains beyond China, according to an Assocham study. The report said India's manufacturing growth has improved significantly since the pandemic, supported by policy reforms, rising investor confidence and infrastructure development. It highlighted that the country's manufacturing growth has moved above the global average, placing India in a stronger position to attract investments. The study also stressed the need to further improve logistics, industrial infrastructure and supplier networks to strengthen India's role in global value chains.
India is strengthening its position as one of the world's leading manufacturing destinations and is emerging as a major beneficiary of the ongoing shift in global supply chains, according to a study released by Assocham.
The report noted that while China continues to remain the world's largest manufacturing economy, global companies are increasingly spreading new investments and production capacity across multiple countries. It said businesses are adopting China+1, nearshoring and friendshoring strategies to build more resilient and diversified supply chains, creating fresh opportunities for economies such as India.
Assocham stated that India has emerged as one of the leading manufacturing economies among emerging markets by improving its manufacturing performance significantly compared to the global average in the post-pandemic period.
According to the study, India's average manufacturing growth increased from 3.44 per cent during the pre-pandemic period between 2016 and 2019 to 4.15 per cent during 2022-25. This improvement helped the country move from performing below the global average to recording manufacturing growth that was nearly two percentage points higher than the global benchmark.
The report attributed this improvement to continued economic reforms, policy support and rising investor confidence. Over the past few years, the government has introduced initiatives such as the Production Linked Incentive (PLI) scheme, investments in industrial corridors and logistics infrastructure, and measures aimed at improving ease of doing business, all of which have contributed to strengthening the manufacturing ecosystem.
Assocham further said India is well placed to strengthen its manufacturing leadership by accelerating investments in logistics and industrial infrastructure, expanding domestic supplier ecosystems and making better use of Free Trade Agreements to integrate more deeply into global value chains.
Source PTI
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