India is striving to elevate its economy from $3.7 trillion to $30–35 trillion by 2047, with a key focus on boosting manufacturing. The goal involves increasing the manufacturing sector’s contribution to GDP from the current 16-17% to at least 25%. The country’s strategy emphasizes the development of integrated manufacturing hubs, aiming to enhance scale, reduce costs, and fortify India’s position in global production networks.
To realize this vision, India has shifted its manufacturing policy towards infrastructure-led hub development. This approach aims to foster scale, reliability, and long-term industrial competitiveness. The government’s emphasis has transitioned from project-level execution to system-level planning, enhancing the efficiency of manufacturing hubs by addressing bottlenecks and improving logistics.
India’s capital expenditure has significantly grown from Rs 2 lakh crore in FY2014–15 to Rs 12.2 lakh crore in FY2026–27, signaling a substantial push towards infrastructure development. The country is increasingly recognized as a preferred manufacturing destination globally, currently ranking third in this aspect. Notably, medium- and high-technology activities now constitute 46.3% of total manufacturing value added, indicating a shift towards more sophisticated industrial structures.
Small and medium enterprises (MSMEs), comprising 7.47 crore enterprises, contribute 35.4% to manufacturing output and play a vital role in driving job creation and economic growth. The recent Union Budget for 2026-27 has proposed initiatives like chemical parks, PM MITRA parks, MSME clusters, and a Biopharma SHAKTI initiative to accelerate development. Additionally, corridor-enabled industrial regions are being established to enhance spatial integration and logistics efficiency within a broader industrial ecosystem.
Industrial corridors such as the Delhi–Mumbai Industrial Corridor (DMIC), Chennai–Bengaluru Industrial Corridor (CBIC), Amritsar–Kolkata Industrial Corridor (AKIC), and Vizag Chennai Industrial Corridor (VCIC) are being developed to support manufacturing hubs and clusters. These corridors aim to improve connectivity and facilitate integrated planning across regions, enabling industrial concentration at scale.
