New Delhi, Sep 4: India’s manufacturing sector is set for a major transformation in the coming decades, with the potential to become a key driver of the country’s long-term economic growth and job creation.
According to a recent industry report, the sector will need to grow at around 13.1 per cent annually to reach the ambitious USD 7.5 trillion mark by 2047. The target forms an important part of India’s broader vision of building a USD 30 trillion economy by 2047.
The scale of the opportunity is significant. Manufacturing, estimated at around USD 501 billion in 2025, would need to expand nearly 15 times over the next two decades to achieve the 2047 goal.
While the growth target is ambitious, the report highlights several areas that could help India move closer to it. Improving workforce productivity, adopting new technologies, expanding production capacity, strengthening skills and integrating more closely with global supply chains are expected to play an important role.
Research covering more than 130 large manufacturing companies found that businesses with stronger workforce productivity achieved more than 50 per cent higher profitability growth and nearly twice the market-capitalisation growth compared with their industry peers.
The report also points to the growing role of artificial intelligence, digital systems and automation in improving efficiency. Better use of technology, combined with skilled workers and streamlined operations, could help manufacturers unlock productivity gains of 15-30 per cent.
India’s manufacturing opportunity is not limited to increasing factory output. A stronger industrial base can create employment, support domestic businesses, boost exports and help Indian companies become more competitive in international markets.
With rising investment, technology adoption and growing domestic demand, manufacturing is emerging as one of the most promising pillars of India’s long-term growth story.
The road to 2047 remains ambitious, but the report underlines that higher productivity, skilled talent and smarter use of technology can give India’s manufacturing sector the momentum needed to reach a much larger role in the economy.