India plans to significantly increase its exports to $1.3 trillion by 2035 by emphasizing manufacturing-driven expansion through structural reforms and deregulation. This strategy, spearheaded by Prime Minister Narendra Modi, represents India’s third major endeavor to transform into a global manufacturing center and a pivotal player in international trade. The government’s focus is on 15 priority manufacturing sectors, including high-end semiconductors, metals, electronics, and labor-intensive industries like leather.
Officials are optimistic that by streamlining regulations, simplifying compliance procedures, and enhancing the business environment, companies will be able to enhance production capacities, attract investments, and compete effectively on a global scale. This renewed emphasis on manufacturing growth comes at a time when India is being recognized as a stable economic force amidst global uncertainties.
Amidst disruptions in global supply chains and escalating geopolitical tensions, India is positioning itself as a dependable alternative manufacturing destination. Recent data indicates a positive response from the manufacturing sector to policy support and reforms. In the third quarter of FY26, India’s manufacturing performance reached a record high, with industry sentiment showing further improvement, as highlighted in a survey by the Federation of Indian Chambers of Commerce and Industry (FICCI).
According to FICCI’s Quarterly Survey on Manufacturing, 91% of companies reported increased or stable production levels in Q3 FY26, up from 87% in the previous quarter. Industrial confidence has also strengthened, with 86% of respondents anticipating higher or similar order levels compared to the previous quarter, partly due to recent GST rate reductions. The survey, covering manufacturing units with a combined annual turnover exceeding Rs 3 lakh crore, revealed that financial conditions are supportive, with an average interest rate for manufacturers at 8.9% and nearly 87% of firms indicating sufficient access to bank funding for operational and long-term requirements.
