India's manufacturing bet draws millions as sector-focused funds surge-mint

India's manufacturing bet draws millions as sector-focused funds surge-mint

India's manufacturing sector is witnessing a significant surge in investment and growth, drawing millions of dollars in funding and sparking interest from global players. According to the latest reports, the sector's potential is being recognized as a key driver for economic growth and job creation. The Indian manufacturing industry has shown remarkable resilience and growth, with the HSBC Manufacturing Purchasing Managers' Index (PMI) reaching a 16-year high in March 2025 [1].

The sector's growth is fueled by several factors, including technological advancements, government initiatives, and favorable market conditions. Digital transformation, a critical component of the manufacturing industry, has sparked creativity and innovation, enhancing efficiency and productivity. The government's initiatives, such as the National Manufacturing Policy and the Production-Linked Incentive (PLI) scheme, aim to increase the share of manufacturing in GDP to 25% by 2025 [1].

Investment in the sector has been substantial, with FDI inflows reaching Rs. 14,34,224 crore (US$ 165.1 billion) in the last decade, a 69% increase over the past decade [1]. Major investments include Google's plans to manufacture Pixel smartphones in India, Maruti Suzuki's export of the Fronx compact SUV to Japan, and the launch of India's first 'Made in India' chip ahead of schedule, supported by the Rs. 76,000 crore (US$ 8.79 billion) Semicon India program [1].

The sector's potential is further highlighted by its projected growth in exports. India's exports grew 6% YoY to Rs. 52,90,225 crore (US$ 602.6 billion) in April-December 2024, driven by strong growth in non-petroleum goods and services [1]. By 2030, India's e-commerce exports are projected to grow from Rs. 8,757 crore (US$ 1 billion) to Rs. 35,02,800 crore (US$ 400 billion) annually, aiding in achieving Rs. 1,75,14,000 crore (US$ 2 trillion) in total exports [1].

The Indian startup ecosystem has also experienced a significant rebound, securing approximately Rs. 5,177.45 crore (US$ 596 million) in funding this week, marking a 226% increase compared to the previous week [1]. This surge was driven by notable deals such as Zepto raising Rs. 3,040.45 crore (US$ 350 million) and HealthKart securing Rs. 1,329.11 crore (US$ 153 million) [1].

In conclusion, India's manufacturing sector is poised for significant growth, drawing substantial investment and interest from global players. The sector's potential to drive economic growth and job creation is being recognized, with government initiatives and technological advancements playing a crucial role in its development.

References:
[1] https://www.ibef.org/industry/manufacturing-sector-india