Gears in Motion: India’s Manufacturing Finds Global Footing, Says S&P

India's manufacturing industry is gaining unprecedented global traction, according to a new report by S&P Global, as targeted policy reforms and robust demand position the country as an emerging industrial giant. Manufacturing contributes 17.2% to India's real GDP today, and the government's push for domestic capacity and supply chain securitization is attracting a wave of foreign investment.

 

S&P Global observes that India's solid Purchasing Managers' Index (PMI) readings-above 58 consistently in 2025-reflect strong growth, outpacing global peers and reflecting solid order books, increased hiring, and rocketing exports. The report further states that India's limited reliance on external trade provides a buffer from global volatility, and longer-term supply chain relocation and trade protectionism will further boost India's manufacturing momentum.

 

With global firms seeking alternatives to China, India’s cost advantages, improving infrastructure, and supportive policies are making it a preferred destination for industrial investment. S&P Global projects India’s real GDP growth to average 5.7% annually over the next decade, setting the stage for the country to become the world’s third-largest economy by 2030–31.

 

Source: S&P Global, Economic Times, India Briefing