India’s manufacturing sector has made significant strides over the past decade, efforts to boost local production have laid the foundation for India to emerge as a strong contender in global manufacturing while creating employment opportunities.
Recent years have seen this progress accelerate, driven largely by geopolitical shifts and a growing urgency to reduce dependency on imports. The government’s ‘Make in India’ initiative provided a clear policy framework aimed at positioning India as a global manufacturing hub, further pushing the idea of a self-reliant nation.
When the 2020 pandemic delivered a blow to the nation’s economy, with industries like tourism and aviation at a standstill, focus shifted toward strengthening domestic production. This period of dormancy was a catalyst for India’s manufacturing revolution.
Simultaneously, global companies seeking alternatives to China under the China+1 strategy began looking at India. This has led to a significant increase in foreign direct investment (FDI), further accelerating growth and promoting in-house electronics production.
Limitations, Advantages, and Support
In the electronics space, I’ve seen the unique challenges Indian brands face. Since production costs are considerably high and require heavy investment, it is necessary to tread with caution. However, targeted government schemes like PLI (Production Linked Incentives), ECMS, and SIPS are helping level the local manufacturing landscape by encouraging investment for Indian companies.
Equally important is the emerging local component ecosystem. From semiconductors and batteries to displays, this development is reducing global supply chain dependency and boosting India’s export potential, backed by trade agreements and policy support.
With over a billion people, India’s greatest advantage is its labour force when it comes to in-house manufacturing. We have both numbers and the potential, giving us a cost advantage over China and the west.
Moreover, government initiatives such as the ESDM scheme under MeitY (Ministry of Electronics and Information Technology) aimed at skill training contribute to a more efficient labour force while providing employment to many underprivileged individuals.
Adding to the convenience is the steadily improving infrastructure, such as the development of electronic manufacturing clusters and industrial corridors. Additionally, lower import duties on components and simplified approval procedures are fostering a more business-friendly environment.
Manufacturing in-house is not just crucial but also beneficial to the local brands in many aspects – It puts us in complete control over the process, the quality, and the pricing, all of which is critical in today’s market. It also allows us to react faster to changing demand, which is essential whether we’re launching in a metro city, exploring smaller cities in the country, or going global.
Indian tech brands have evolved from mere experimentations to products fit for the Indian as well as the global audience. The truth is, this shift didn’t happen overnight. It was built on years of understanding Indian consumers, investing in R&D, and creating scalable operations from the ground up.
In the end, manufacturing is not about factories alone. It’s about ecosystems; from training workers, sourcing responsibly, to investing in technology that allows for growth without compromising on quality.
The article has been written by Ashok Rajpal, Managing Director, Ambrane India
