Indian manufacturing is seeing developments across aerospace, electric vehicles, industrial finance and electronics, as companies explore new production capabilities and policymakers debate ways to strengthen the country's manufacturing competitiveness.
Embraer's proposed majority stake in Mahindra Defense’s aerospace subsidiary brings aircraft manufacturing and potential supplier opportunities into focus.
Audi India is considering local production of a battery electric vehicle to support its market-share ambitions.
Separately, former NITI Aayog CEO Amitabh Kant has called for reducing the statutory liquidity ratio to improve manufacturing credit conditions.
SJS Enterprises is also expanding into display electronics with a planned Rs 81 crore facility in Pune. Together, these developments highlight how investment decisions, financing conditions and domestic supply chains are shaping India's industrial landscape.
Brazilian aerospace manufacturer Embraer will acquire a 51 percent stake in Novavayu Aerospace, a subsidiary under Mahindra Defense Systems, for approximately Rs 5,100 crore.
The transaction is expected to be completed by December 1, 2026. The partnership is linked to the companies' pursuit of the Indian Air Force's Medium Transport Aircraft program.
The development could create opportunities to strengthen aircraft manufacturing in India, depending on the program's outcome and the joint venture's eventual production plans.
Potential areas of industrial significance include:
Embraer and Mahindra have identified Nagpur as a potential final assembly location for the C-390 Millennium if the aircraft is selected for the Indian Air Force program. However, selection and manufacturing execution remain important conditions.
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Audi India is evaluating local manufacturing of a battery electric vehicle as part of its plan to increase its luxury-car market share from around 8 percent to 15–16 percent over the next three to five years.
A decision on local production is expected in the coming months, according to the company. Local production could give Audi greater flexibility in managing import costs, sourcing and pricing.
However, the actual benefits would depend on the model selected, localization levels and manufacturing economics.
The move could also bring attention to India's luxury EV supply chain, particularly battery systems, power electronics and thermal management components. Audi's plans remain under consideration, and no specific locally manufactured model has been confirmed.
Former NITI Aayog CEO Amitabh Kant has urged policymakers to reduce the statutory liquidity ratio (SLR), currently at 18 percent, to improve credit availability for manufacturers.
Kant has argued that lowering the cost of credit is important for expanding job-intensive manufacturing. He has also highlighted land acquisition and industrial electricity costs as factors affecting India's business environment.
A potential SLR reduction could give banks greater flexibility to allocate funds, although it would not automatically guarantee lower borrowing rates for businesses.
For manufacturers, financing conditions directly influence decisions involving:
The proposal places manufacturing finance alongside infrastructure and industrial policy as an important consideration for long-term capacity expansion.
SJS Enterprises will invest approximately Rs 81 crore through its subsidiary, SJS Display Electronics, in a new 60,000-square-foot manufacturing facility at Koregaon Bhima in Pune district. Commercial operations are expected to begin by September 2027.
The investment breakdown includes:
The facility will support the company's expansion into cover glass and display electronics manufacturing.
The investment brings attention to domestic display component manufacturing, which serves applications across automotive systems, consumer electronics and appliances. Its eventual contribution will depend on production capabilities, customer demand and the company's execution of the project.
The Pune facility adds another development to India's electronics manufacturing ecosystem, where component capabilities are an important part of building a more integrated industrial supply chain.
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