Peek inside India’s advanced manufacturing landscape

Next Gen Industrials

14 Oct 2025

India’s manufacturing landscape is undergoing a tectonic shift. After decades of being defined by cost competitiveness and scale, the country is now at the cusp of a capability-driven transformation. Fuelled by global supply chain realignments, deep policy support, and an expanding pool of engineering talent, India is fast emerging as a hub for advanced manufacturing where innovation, automation, and sustainability converge. This evolution is not merely about increasing production; it’s about elevating value creation, moving India up the global industrial value chain.

Over the last five years, India’s manufacturing output has accelerated meaningfully reaching US$ 471B in FY24, growing at 6% CAGR since FY19 and projected to reach US$ 1.3T by FY30 (CAGR 18%).

Exhibit 1: Growth in India’s manufacturing GDP

Quoted in collaboration with: https://events-in.accel.com/advanced-manufacturing-report
What is fuelling growth in India’s manufacturing landscape?

Policy push and infrastructure build-out:

a. Multiple policy programs launched by GOI to strategically support deep tech

Make in India: launched in 2014
National Manufacturing Policy: Aims to increase manufacturing sector contribution to GDP from 17% to 25%
PLI schemes for advanced manufacturing: Committed over INR 1.76L Cr across 14 sectors, including electronics, semiconductors, specialty steel, solar PV, drones, textiles, automotive, and pharma

b. Infrastructure & Industrial Corridors: Dedicated Freight Corridors, Defense Industrial Corridors, Integrated Manufacturing Clusters, Electronics Manufacturing Clusters, and Medical Device Parks to improve logistics and provide world-class industrial infrastructure

c. Regulatory and Trade Support, Ease of Doing Business Reforms: Digitized compliance, single-window clearances, and reduced approval timelines

d. Financial & Trade Support: Capital subsidies, preferential procurement, export incentives (RoDTEP, MEIS/SEIS), and reduced GST/customs on high-tech inputs

e. Startup & MSME funding schemes: SIDBI, Fund of Funds, Credit Linked Capital Subsidy Scheme (CLCSS) for tech upgrades

f. Global supply chain rebalancing: The China+1 strategy has led to a 208% increase in international company registrations in India (2019–2023).

g. Talent and capability advantage: India is set to leverage its demographic dividend with 28 years being the median age. Additionally, a large STEM pool, growing R&D infrastructure, and 1.5M+ engineering graduates have created the human capital base for innovation-led manufacturing steering the country ahead of its global peers in talent (Exhibit 2)

Exhibit 2: Talent pool in India v/s Global

Quoted in collaboration with: https://events-in.accel.com/advanced-manufacturing-report

What makes a manufacturer “Advanced”

A company qualifies as advanced if it demonstrates innovation across product, process, or technology metrics, meeting at least two parameters in each domain.

Exhibit 3: Key parameters to assess whether a manufacturing technology qualifies as advanced

Underpinning this transformation are five technological trends shaping the next decade of industrial growth: additive manufacturing, material transformation, joining & surface enhancement, precision subtractive methods, and smart manufacturing. These trends represent the backbone of India’s advanced manufacturing leap, each enabling higher precision, lower cost, and greater sustainability.

Exhibit 4: Key technological trends emerging out of advanced manufacturing

Quoted in collaboration with: https://events-in.accel.com/advanced-manufacturing-report
Which verticals are driving growth in India’s advanced manufacturing landscape?

This technological shift is manifesting across a set of seven high-growth verticals: automotive, electronics, chemicals, medical devices, defense, aerospace, and space. Each of these industries is at a unique inflection point, where policy support, private investment, and global demand are converging to redefine India’s industrial mix.

These sectors were shortlisted based on three defining parameters:
1. Market attractiveness: India market size and future market growth focusing on large and fast-growing segments
2. Advanced manufacturing relevance: High applicability of innovation in product design, materials, or process automation; and
3. Investment readiness: Early signals of private participation

At the macro level, each sector was evaluated across five foundational pillars: supply chain readiness, policy and regulatory support, private investment momentum, research ecosystem maturity, and human capital availability. These parameters establish the overall ecosystem readiness of an industry to scale through advanced manufacturing technologies.

At the micro level, Praxis assessed each sector using business fundamentals that determine the viability of new entrant participation: market inflection point (growth stage and saturation), market dynamics (import dependency, competitive intensity), market structure (degree of consolidation), capital intensity (setup and working capital requirements), barriers to entry (brand, distribution, or technology moats), and disruption potential (extent of white spaces for startups and IP creation).

By intersecting these two layers of analysis: sector readiness and startup viability, we identified where innovation, capital, and policy support converge to create high-defensibility opportunities.

Exhibit 5: Opportunity across India’s high growth verticals across advanced manufacturing

Quoted in collaboration with: https://events-in.accel.com/advanced-manufacturing-report

How Praxis can help?

At Praxis Global Alliance, we partner with industrial and manufacturing leaders to capture opportunities in India’s advanced manufacturing ecosystem. We help clients identify high-potential sectors, design innovation-led strategies, and enhance operational readiness through automation, digital transformation, and supply-chain optimization. Leveraging our expertise across advanced manufacturing, we enable organizations to move beyond cost advantage toward technology-led competitiveness and sustainable growth.