More than a decade after its launch, Make in India is starting to reshape how international manufacturers view India within their long-term production and supply chain strategies.
What began in 2014 as a government-led industrial initiative has evolved into a broader effort to position India as a major manufacturing, technology, and export hub. That effort has gained momentum in recent years as companies reduce dependence on China and diversify production across multiple Asian markets.
Trade tensions, supply chain disruptions, and geopolitical uncertainty have accelerated this transition. For many overseas industrial groups, India is no longer viewed simply as an alternative production location. It is increasingly being treated as a strategic manufacturing market with long-term growth potential.
Electronics Manufacturing Drives New Investment
Electronics manufacturing has emerged as one of the clearest indicators of India’s industrial expansion.
Apple suppliers including Foxconn, Pegatron, and Tata Electronics have expanded production capacity across India as Apple increases iPhone manufacturing outside China.
According to industry estimates and government-linked data, India’s smartphone exports crossed approximately USD 15 billion during FY2024–25. Local assembly, component manufacturing, and supplier localisation have all expanded rapidly under the government’s Production Linked Incentive (PLI) programmes.
India’s broader electronics ambitions are also growing. Government targets aim to scale the country’s electronics manufacturing sector to USD 300 billion by 2026, supported by investments across semiconductors, batteries, telecom equipment, and consumer electronics.
Several international firms are now using India not only for assembly operations, but also for engineering, automation, supply chain coordination, and product development.
India’s manufacturing push is increasingly tied not only to domestic demand, but also to its ambition of becoming a larger export-driven economy.
Automotive and Industrial Manufacturing Continue Expanding
The automotive sector remains another major pillar of the Make in India strategy.
Foreign manufacturers including Hyundai Motor Company, Toyota Motor Corporation, Mercedes-Benz Group, and Suzuki Motor Corporation maintain large-scale manufacturing and export operations across India.
India is now among the world’s largest automobile markets, allowing automotive producers to combine domestic demand with export-oriented production. Several companies are also increasing investments linked to electric vehicles, batteries, and advanced automotive components.
The country’s industrial ecosystem has matured significantly over the past decade. Large supplier networks, engineering capabilities, precision manufacturing, and improving logistics infrastructure now allow companies to scale production more efficiently.
Semiconductors Become a Strategic Priority
Semiconductors have become another major focus area for India’s industrial ambitions.
In recent years, the government approved multiple semiconductor and electronics manufacturing projects aimed at strengthening domestic chip production and reducing import dependence. The sector has gained strategic importance as countries and corporations seek more resilient semiconductor supply chains.
One of the most closely watched developments has been the expansion of semiconductor investments involving Micron Technology and India’s growing semiconductor ecosystem. In 2026, semiconductor manufacturing discussions and supplier ecosystem investments continued gaining momentum across states including Gujarat and Tamil Nadu.
The manufacturing push is also spreading beyond a few industrial centres. States including Karnataka and Maharashtra continue attracting investments linked to electronics, engineering, EV supply chains, industrial automation, and digital manufacturing operations.
Infrastructure and PLI Incentives Strengthen Manufacturing Growth
Infrastructure development has accelerated alongside the Make in India push.
Dedicated freight corridors, industrial parks, logistics hubs, expressways, and port modernisation projects are improving connectivity for export-oriented industries. Manufacturing clusters around Chennai, Pune, Bengaluru, Noida, and Gujarat’s industrial corridors continue attracting foreign investment.
PLI incentives have become a major catalyst for new factory investments across electronics, batteries, telecom equipment, pharmaceuticals, automobiles, solar manufacturing, and semiconductors.
Manufacturing currently contributes roughly 17% of India’s GDP, and policymakers continue pushing to increase the sector’s contribution through industrial expansion and export growth.
Why Global Companies Are Looking at India Differently
India’s engineering workforce remains one of its biggest competitive advantages. The country produces thousands of engineering and technology graduates annually, allowing multinational firms to scale manufacturing, research, automation, and software operations more efficiently.
Challenges still remain. Companies continue facing issues related to logistics costs, regulatory approvals, land acquisition, and supply chain depth in certain industries. However, the perception of India inside global boardrooms has changed significantly over the past few years.
For companies redesigning supply chains for the next decade, India is steadily moving from a secondary manufacturing option to a strategic industrial priority.