India emerging as key global manufacturing hub amid supply chain shift: ASSOCHAM
New Delhi, July 7
India is rapidly strengthening its position as one of the world's leading manufacturing destinations and is emerging as a major beneficiary of the ongoing realignment of global supply chains, according to a report released by industry body ASSOCHAM on Tuesday.
The report said the post-COVID global manufacturing landscape has undergone a significant transformation, with companies increasingly diversifying production beyond China by adopting China+1, nearshoring and friendshoring strategies to build more resilient supply chains.
Analysing the world's 10 largest manufacturing economies, which together account for nearly 65 per cent of global manufacturing output, the report identified India as one of the emerging manufacturing leaders due to its improved performance relative to the global average in the post-pandemic period.
India's average manufacturing growth increased from 3.44 per cent during the pre-pandemic period (2016-19) to 4.15 per cent in 2022-25, moving from below the global average to nearly two percentage points above the world benchmark, it added.
In the post-pandemic period, India joined the United States, France, Germany, Italy and the United Kingdom in outperforming the global benchmark. Before the pandemic, only China, Mexico and Russia recorded manufacturing growth above the global average.
"The global manufacturing landscape is undergoing a gradual but important shift. Companies are no longer looking at efficiency alone; they are equally focused on resilience and diversification. India's improving manufacturing performance reflects the impact of sustained reforms and growing investor confidence," said Nirmal K. Minda, President, ASSOCHAM.
The report attributed India's rising competitiveness to expanding domestic demand, infrastructure development, improved logistics, growing investor confidence under the China+1 strategy, and government initiatives such as the Production Linked Incentive (PLI) scheme, industrial corridors and PM Gati Shakti.
It said these measures have enhanced India's attractiveness as a preferred destination for global manufacturing investment.
The industry body added that India can further consolidate its manufacturing leadership by accelerating logistics and industrial infrastructure, strengthening domestic supplier ecosystems, improving ease of doing business, promoting Industry 4.0 technologies and leveraging free trade agreements to integrate more deeply into global value chains.
— IANS
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