Key Points

India’s manufacturing sector is witnessing unprecedented growth fueled by government-led infrastructure projects. Over 88% of manufacturers attribute their expansion plans to initiatives like Bharatmala and Sagarmala. The PLI scheme and logistics upgrades are key drivers, with 95% reporting better transport access. Experts urge further investment in plug-and-play industrial parks to sustain momentum.

Key Points: 88% of Indian Manufacturers Expand Due to Modi's Infrastructure Push

  • 88% manufacturers credit infra push for expansion plans
  • 95% report improved logistics access
  • PLI schemes impact 40% of businesses
  • 77% see ease of doing business rise
2 min read

88 pc of manufacturers plan to expand operations backed by India's infra push

India's infrastructure boom drives 88% of manufacturers to expand operations, with PLI schemes and logistics upgrades boosting industrial confidence.

"India’s manufacturing sector is undergoing a structural shift – Gautam Saraf, Cushman & Wakefield"

New Delhi, June 27

The government’s infrastructure push has directly influenced capital investment decisions of 88 per cent of manufacturers, signalling increased confidence to scale operations, according to a report on Friday.

India’s manufacturing and logistics ecosystem is undergoing a significant transformation, driven by strong policy support and large-scale infrastructure investments.

Cushman & Wakefield’s report, titled ‘Elevating India’s Manufacturing Resilience: Charting the Path to Self-Reliance,’ reveals high optimism regarding the impact of government-led infrastructure initiatives such as Bharatmala, Sagarmala, Dedicated Freight Corridors, and the National Industrial Corridor Development.

As many as 86 per cent of respondents said these initiatives have positively influenced their business operations, while 95 per cent reported improved access to logistics and transport infrastructure as a result.

For large enterprises, the impact is even sharper — 94 per cent say these upgrades have been pivotal in shaping their expansion plans.

While the infrastructure buildout has laid the groundwork for industrial expansion, government policies like the production-linked incentive (PLI) schemes and ‘Make in India’ are shaping strategic priorities.

Over 40 per cent of respondents said these schemes have had the most significant impact on their business.

Meanwhile, the National Logistics Policy (NLP) and National Industrial Corridor Development (NICD) were cited by 54 per cent as being especially beneficial, particularly among MSMEs, for whom logistics accessibility and industrial park connectivity are key enablers, said the report.

Notably, 77 per cent of the respondents felt that the ease of doing business had improved, with the figure rising to 86 per cent among large-scale firms.

“India’s manufacturing sector is undergoing a structural shift. Our findings indicate a strong alignment between infrastructure investment, policy clarity, and industry intent,” said Gautam Saraf, Executive Managing Director, Mumbai and New Business, Cushman & Wakefield.

To sustain this momentum, India must address deep-rooted cost and capacity gaps — especially in logistics, integrated facilities, and MSME productivity.

“Plug-and-play industrial parks, multimodal logistics networks, and improved land aggregation frameworks are not just enablers, they are essential levers for converting policy momentum into production ready outcomes,” said Saraf.

To support long-term growth, the report lays out a five-pronged strategy: accelerate the development of plug-and-play industrial parks; reassess the parameters that define MSME’s to foster scale; fast-track the rollout of multimodal logistics parks (MMLPs); invest in targeted skill development programs; and empower MSME exports through unified digital platforms and incentives.

- IANS

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Reader Comments

R
Rajesh K.
This is fantastic news! As someone working in auto components manufacturing in Pune, I've seen first-hand how the new expressways and freight corridors have reduced our logistics costs by nearly 30%. Make in India is finally showing results 🇮🇳
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Priya M.
While the infrastructure push is commendable, I hope the government pays equal attention to environmental concerns. Many new industrial corridors are coming up near ecologically sensitive areas. Growth shouldn't come at nature's cost.
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Amit S.
Our textile unit in Surat benefited massively from the PLI scheme. But the real game-changer has been the improved road connectivity - we can now deliver to Mumbai in 6 hours instead of 12! More power to such initiatives 👏
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Neha T.
The report misses one critical point - while large companies benefit, small manufacturers still face bureaucratic hurdles. I run a packaging unit and still spend 20% of my time on compliance rather than business growth. Simplify further!
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Vikram J.
Infrastructure + PLI + China+1 strategy = Perfect recipe for India to become manufacturing hub. But we need to focus equally on quality standards to compete globally. Jai Hind!

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