Divya Agarwal
New Delhi [India], February 25: India has transformed itself in the last 10 years – from being the 5th Largest Economy, having the highest population & having the 2nd Largest Road Network in the World. In the Wake of Escalating Trade Wars between United States & its largest trading Partners – China, Mexico & Canada. Does India have a chance to become the Next Big Manufacturing Superpower? Answer is yes.
India is a large country by sheer size with abundant availability of land to set up Manufacturing plants.
It has the highest population in the World, a very large young population that is entering work force, making the cost of labor low as compared to most of the major countries. Government is pushing its narrative of “Make in India” Strategy. Moreover, India has launched a “Production Linked Incentive” or “PLI” Scheme in the last few years to Incentivize factories to increase manufacturing & become more competitive in the Export market. In the latest Budget 2025, India’s Finance Minister Laid Out Initiatives to Increase Funding to the Medium & Small-Scale industries, along with a Boost in spending for Infrastructure – Beneficial to Boost Overall Exports.
Indian Government is making efforts to Improve its Infrastructure for Logistics. India has now the 2nd Largest Road Network in the World, only after USA, which is a significant improvement in the last decade. It has launched a detailed “Logistics Policy” to modernize Ports & Railway. With the Modernization of Infrastructure, India aims to reduce Logistics Costs from the current 14-18% of GDP to come closer to the Global Average of 8%, making it more attractive in the Export Market.
Intensifying USA Trade War with China, Mexico, Canada
With the Trade War intensifying between USA – China, Mexico, Canada – India has now a clear advantage. All US Importers are now looking at Diversifying their Supply chain & reducing their dependence on these countries, while looking to enter New Markets like – India, Vietnam, Thailand, among others.
India has a definite advantage over others. With its manpower, land & Infrastructure, India can help match the Scale of operations needed to Produce & Export to Countries like US & major EU countries. It also offers an Excellent Infrastructure like a Long Coastline, Deep Sea ports, Growing Number of Airports, Improved Road network & Modernization of Rail Network.
What are the Commodities that India can focus on?
- Automobiles, engines, transmissions and other components. GM & a few other Automobile companies including Stellantis, Toyota & Honda make as much as 40% of their North American cars / Trucks in Canada & Mexico.
- Mobile Phones: China today is the biggest Source of Electronics /Smart Phones Imports into USA. However, the Smartphone Manufacturing in India is growing Rapidly. In 2024, Apple i-Phones manufactured in India accounted for 15% of Apple’s global production capacity. India is now the 2nd -largest mobile phone manufacturer globally, with over 200 manufacturing facilities.
- Semi-Conductor/Chips: Several Makers of Chips and Semi-conductor companies like TSMC, Nvidia & ASML are likely to be impacted due to their Global Supply chains include factories in Mexico and China. India has a vision to Grow Semiconductor & has recently launched ‘India Semiconductor Mission (ISM)’ to boost manufacturing.
To summarize, for India, the Time is Now! India’s Story can be similar to what China’s was in the 1990-2010 decades. If India continues its efforts on improving its Manufacturing Ecosystem & reducing Bureaucracies & Roadblocks, then becoming the Next Big Superpower of Manufacturing will soon be a Reality, rather than just a dream.
About Author
Contributed by Sanyukta Kulkarni
Sanyukta Kulkarni, is a Senior Route Development Manager for Indian Subcontinent, based in USA. She has been working in the International Logistics Industry the last 18 years across India & USA. For the last 10 years, her Focus has been Building the Trade Corridor between India & USA and to Improve the Business Growth between India & USA Trade Corridor with DB Schenker.
LinkedIN Profile: (1) Sanyukta Kulkarni | LinkedIn
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