India as an Emerging Manufacturing Hub: Factors Driving Growth

India is emerging as a prime destination for foreign investment in manufacturing, thanks to strategic government policies, financial incentives, and its geopolitical stability. With increased foreign technical collaborations and a notable rise in FDI, India is capitalizing on its low labor costs, trainable workforce, and enhanced manufacturing capabilities. Key sectors like electronics, automotive, and pharmaceuticals are seeing robust growth, supported by initiatives such as the Production-Linked Incentives (PLI) scheme. The country aims to attract $100 billion in annual FDI and achieve $1 trillion in exports by 2030. Despite challenges in regulatory and infrastructure areas, India’s “golden era” of manufacturing is marked by significant private equity investments and a strong push towards smart manufacturing technologies.