What Makes India a Manufacturing Powerhouse of the Future?




The pandemic exposed the fragility of global supply chains, and we have yet to recover. Over the last two years, companies have been scurrying to reimagine their sourcing and manufacturing strategies to achieve greater resilience and reliability. 

By partnering with established sources across multiple geographic locations, manufacturers can quickly adapt to potential hurdles in the future. So, India has all the right ingredients to become a manufacturing powerhouse. 

This doesn’t surprise us, as MMI has maintained a strong presence in the subcontinent for decades. Our subsidies, including Wizard Tubes & Engineered Component (WTEC) and Maryland Cast and Forge Pvt Ltd (MCAF), continue to scale, growing our footprint within India.


What’s Driving Growth in the Indian Manufacturing Sector?

Government Policies

One of the key drivers of growth in the Indian manufacturing sector is the government. It makes sense as manufacturing accounts for more than 15% of India’s Gross Domestic Product (GDP). India’s government also stressed the importance of quality assurance to ensure that products made in India meet or surpass international standards. 


Rising Demand

Although supply chain and logistics issues brought on by COVID-19 proved to stifle growth internationally, the numbers suggest that the local market successfully filled the gap. There has also been an increase in hiring activity among manufacturers, which points directly to rising demand. 

However, while most manufacturers in India share a positive outlook on growth prospects, there is still a lot of fear concerning inflation.


Growing Youthful Population

India boasts a growing young population that will demand at least 90 million jobs by 2030. This includes as many as 60 million new workers who will enter the workforce by the end of the decade. An additional 30 million are expected to move from farming into more productive industries like manufacturing.

The availability of a large pool of cheap labor makes India a formidable force in manufacturing. Coupled with a history of engineering prowess and increased investment, India is poised to dominate this space.


What Are the Challenges That Lie Ahead?

India must first find viable solutions to inflationary pressures to become a manufacturing powerhouse. Furthermore, manufacturers in the region must also have strategic plans in place to respond to potential geopolitical issues within the continent. The industry must also optimize and scale up mature value chains and transform established but underweight value chains. 


What Is the Future of Manufacturing in India?

Indian manufacturing is forecasted to reach $1 trillion by 2025. Furthermore, the implementation of the Goods and Services Tax (GST) will transform India’s common market with a GDP of $2.5 trillion. 

When you put all these factors together and add a population of over 1.3 billion, you can bet that the country will be ripe for industrial investment. As such, everything points to a bright future for India’s robust manufacturing sector.


Michigan Manufacturing International partners with American companies to source custom mechanical components and assemblies. Our supply managers live and work in five low-cost regions, maintaining decade-long partnerships and ensuring quality before parts leave the supplier.

Logistics, warehousing, and engineering are handled in the USA. Our business model offers a single partner solution to sourcing abroad, providing the cost savings of purchasing internationally with the ease of buying from an American supplier.


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