India is rapidly solidifying its position as a global manufacturing powerhouse, with Union Minister Pralhad Joshi expressing confidence that the nation is well on its way to becoming the 3rd largest manufacturing hub in the world. This ambition is fueled by a confluence of factors, including supportive government policies, a dynamic and youthful workforce, and a growing domestic market.

The government's "Make in India" initiative and Production Linked Incentive (PLI) schemes are significantly boosting foreign investments in manufacturing. By 2025, Foreign Direct Investment (FDI) in India's manufacturing sector is projected to surpass $100 billion, encouraging companies to establish and expand their production capabilities within the country. The PLI scheme alone has attracted investments of over INR 1.03 lakh crore. These policies are designed to encourage investment and capacity building in key sectors such as electronics, textiles, and semiconductors.

India's manufacturing sector is undergoing a revolution, driven by economic reforms, technological advancements, and a global shift towards diversifying supply chains. Industry 4.0 is transforming India's manufacturing landscape, with technologies like AI, IoT, and robotics becoming increasingly prevalent. By 2025, India is expected to see a major surge in smart manufacturing, driving efficiency, reducing costs, and enabling companies to meet global quality standards with greater ease.

Notably, India has recently claimed the number one spot among countries with the lowest manufacturing costs, surpassing China. This competitive advantage is a significant boost for the Indian economy, attracting global giants looking to cut costs and leading to a potential rise in FDI and the relocation of manufacturing units. More and more companies are likely to set up manufacturing units in India, adding to its rising Foreign Direct Investment (FDI). This shift could deal a serious blow to China, which has long been the hub for international production. India's rising cost advantage is now attracting companies that previously only thought of China as their go-to destination.

India's strategic location and growing infrastructure make it an ideal location for companies looking to diversify their global manufacturing operations and build resilient supply chains. Indian manufacturers are increasingly adopting eco-friendly processes and renewable energy sources to meet the demand for green manufacturing. This shift is driven by both regulatory pressures and the global demand for more sustainable supply chains.

Furthermore, the government's focus on skilling initiatives ensures a steady supply of trained professionals, ready to work in high-tech manufacturing environments. India's vast workforce is being equipped with the skills necessary to operate advanced manufacturing technologies.

Several states, including Tamil Nadu, Assam, Uttar Pradesh, and Andhra Pradesh, are developing their own policies to encourage component manufacturing. The central government is also committed to fostering domestic electronics manufacturing through a hybrid scheme offering Capex support and turnover-linked incentives for component manufacturing.

India's electronics manufacturing sector is experiencing rapid growth, with value addition increasing from 30% to around 70% and projected to reach 90% by FY27. Mobile phone exports have grown 77 times in the last 10 years, and imports of fully built air conditioners have significantly decreased as local production increases.

India is also focusing on becoming a global hub for green hydrogen technologies, with the National Green Hydrogen Mission aiming to establish the country as a major producer, user, and exporter of green hydrogen and its derivatives.

India's ambition to become a global manufacturing hub is supported by strong policy support, a growing domestic market, technological advancements, and a focus on sustainability. With continued efforts and strategic alignment, India is poised to achieve its goal and emerge as a major player in the global manufacturing landscape.