India's Manufacturing Shift: 'Make in India' to Global Reach

India is at a cross road in its economic transformation. Previously being widely perceived as a service-based economy, the country is quickly transforming itself into a manufacturing powerhouse with international aspirations. This dramatic change has been triggered by the Make in India initiative, which was launched in 2014 and has transformed the country not only into a consumer market but also into a producer, innovator, and a leading exporter in the global arena.

Communications Minister Jyotiraditya Scindia captured this transformation, stating, “Earlier we were a service nation, now we are a producer nation. We were previously regarded as a consumer nation; nowadays we are an entrepreneurship and export centre, an innovation.”

This transformation is not simply a change in policy rhetoric-it is essentially a redefinition of the Indian identity of the economy and place within the global value chains. 

Electronics Revolution in its Manufacturing

Perhaps nowhere is this transformation more evident than in the electronics manufacturing sector. The industry has been able to realize an explosive growth due to the positive policies, development of technology and strategic investments in manufacturing capabilities.

Union Minister of Railways, Electronics and IT, Ashwini Vaishnaw, pointed to this momentum: "Electronics manufacturing eco-sphere is experiencing high growth. New suppliers, especially of the small and medium performing enterprises, are coming into the market every week.”

He has also highlighted the evolution of the sector whereby design capabilities are also changing and new designs and innovative manufacturing methods are coming up on the regular basis.

This boom in the electronics industry is not just an increase in volume production, but indicates India is moving up the value chain, no longer a collection assembly but a design-oriented manufacturing facility, making the country a viable competitor to high-tech manufacturing.

The Supply Chain Imperative

The need to have a strong supply chain management has never been more significant as Indian manufacturing is scaled. Global manufacturers, which have taken their operations to India, know that operational excellence is achieved through a coordinated flow in the value chain.

This is one of the strategic priorities that Alan Win, the Founder and CEO of Middlebank Consulting Group, has highlighted: The key to manufacturing success is a well-managed supply chain that includes sourcing, manufacturing, inventory, and distribution. Close supplier relations, visibility, and effective logistics will lower costs, improve quality, and enhance responsiveness to demand fluctuations. A strategic approach is balanced between efficiency, risk management and sustainability of supply chains, which are not only functions to operate but major enablers of competitive advantage. This can be achieved by putting planning, cooperation and continuous improvement as the first priority in order to increase the resilience, sustainable practices and secure market position by providing their reliability today and developing the capacity to adapt to matters in the future.

This is a comprehensive approach to supply chain management that is indicative of the maturity the Indian manufacturing is achieving where cost arbitrage is no longer a competitive benefit, but reliability, quality, and strategic responsiveness are.

Innovation Debate Making vs. Creating

Although the Make in India initiative has been gaining grounds, other economists believe that India has other competitive advantages in the long term. The manufacturing-first approach has a controversial alternative, according to the economist and Indian School of Business (ISB) professor Prasanna Tantri, "My point is, what is your focus? Should your focus be 'Make in India' or 'Innovate in India'? My urge is - you focus on Innovate in India."

"Because the government thinks that SMEs and manufacturing are where the jobs are. They are going anyway. How long will you fight this robo thing? Actual jobs are in non-tradables. The good thing about non-tradable jobs is that technology doesn't change as much," he added.

This perspective raises important questions about resource allocation and strategic priorities. Should India prioritize becoming the world's factory floor, or should it leapfrog to innovation-led growth? The answer may not be binary—successful economies often excel at both.

Green Manufacturing: The Sustainable Advantage

As global supply chains increasingly prioritize sustainability, Indian manufacturers are recognizing that environmental responsibility isn't just ethical—it's a competitive advantage. Companies establishing operations in India are investing in green manufacturing capabilities that meet global standards.

Divya Purohit, India Head - LLS at SKF, illustrated this commitment: "The Indian economy is powering ahead, and SKF's strong brand presence in India, anchored by our world-class green manufacturing facility in Bangalore, positions us well to support this growth. Aligned with the Make in India initiative, we are committed to producing more of our advanced lubrication solutions locally, ensuring customers benefit from globally benchmarked yet locally manufactured systems. Our focus remains on delivering the best lubrication solutions to our customers and playing our part in keeping the wheels of India's progress moving smoothly."

This pace of manufacturing growth aligned with sustainability shows that Indian facilities can compete not only based on cost, but also based on the achievement of the high environmental and quality demands of the global markets.

The Way Forward: Change, Improvements and Influence

The history of manufacturing in India is that of a fine walk between competing imperatives. The nation has to build production capacity, strengthen the capacity to innovate, human capital and competitive advantages all at the same time, ride through the technological discontinuity and the uncertainties in the global economy. The increase in SMEs engagement in manufacturing ecosystems, the blistering development of design capacities and the creation of global-class green facilities are all indicators of India establishing the enabling capabilities to maintain manufacturing leadership.

Nonetheless, the warning given by Professor Tantri concerning automation and the creation of new employment opportunities in manufacturing is worth taking seriously. This might be the future of Indian manufacturing as it can shake off the complexities of assembly based on labor and focus on knowledge-based production where innovation and manufacturing are merged and not competing.

Leader's Thoughts: Reimagining Self-Reliance: India’s Push for Homegrown Tech

Conclusion: Beyond Borders

The transformation of India's manufacturing is not just a matter of economic policy, but rather a way of national ambitions. The transition to global coverage of Make in India is an indication of increased confidence in the Indian capabilities, infrastructure and business environment.

With the country still drawing in investment, establishing supply chain resiliency and expanding the limits of what can be produced at home, the final gauge of success will be how well India can create value, not only products. It is either making or innovating, but either way, the aim is the same: to bring India to a point where it becomes an essential part of the global economic systems, produce good jobs, and become a source of sustainable prosperity.

The process of the service country turning into a manufacturing giant is already in progress. The following book-becoming an innovation nation--is already underway.