A recent industry report highlights that 88 per cent of Indian manufacturers are preparing to expand operations, driven largely by the country’s accelerating infrastructure development. This surge in confidence reflects growing optimism about future growth and resilience in the manufacturing sector. Strong government interventions—such as Bharatmala’s highways, Sagarmala’s port upgrades, Dedicated Freight Corridors, and the National Industrial Corridor—have played a pivotal role in this rise.
According to industry engagement, 86 per cent of manufacturers reported these initiatives are already impacting their operations positively, with 95 per cent citing improved logistics and transport infrastructure . For many large enterprises, these infrastructure upgrades have become critical to their expansion strategy, reaffirming confidence in India’s industrial future. Policy incentives such as Production Linked Incentive (PLI) schemes and the Make in India initiative further reinforce this momentum, with over 40 per cent of respondents rating these programs among the most influential. Smaller and medium enterprises, in particular, benefit from the National Logistics Policy and the National Industrial Corridor, which link industrial zones and improve park connectivity—factors cited by 54 per cent as significant enablers .
Manufacturers also report substantial improvements in the ease of doing business, with 77 per cent acknowledging progress—and 86 per cent among large firms—indicating that regulatory streamlining is beginning to yield tangible outcomes . India’s manufacturing sector now contributes roughly 15–16 per cent of GDP. The country ranks among the top three globally in cost competitiveness and operating conditions—though risks like political uncertainty and natural disasters remain a concern. Challenges persist: land acquisition hurdles, fragmented utilities, and transport network gaps pose obstacles. Experts emphasise the strategic need for plug-and-play industrial parks, fast-tracked multimodal logistics hubs, updated MSME frameworks, skilled workforce initiatives, and digital export platforms .
India’s logistics and industrial real estate demand remains robust, set to exceed 50 million sq ft in 2024, a continuation of growth driven by manufacturing, e-commerce, and third-party logistics With manufacturing-linked leasing climbing to over 25 per cent of warehouse space, urban areas near industrial corridors are swelling with activity. The strategic interplay of infrastructure investment, policy support, and private-sector confidence suggest a manufacturing renaissance is underway. To maintain this trajectory, action is required on faster industrial park rollout, streamlined land policies, supply-chain digitalisation, and inclusive workforce skilling. Public and private collaboration will be essential to convert current momentum into enduring, low‑carbon, and equitable industrial growth.
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