Top 5 Emerging Manufacturing Sectors in India

A major shift is taking place in India’s manufacturing industry because of innovation, global demand, and government initiatives. 

There are certain sectors in India that offer great potential for growth and investment, creating opportunities to become a global manufacturing hub. Furthermore, these sectors will contribute to the economy both in terms of economic contribution as well as sustainability and future-oriented trends.

Let’s take a look at the 5 emerging manufacturing sectors in India, their growth potential, and why they are the future of India.

1. Electronics and Semiconductors

Image by freepik

The electronics and semiconductor industry is a key component of India’s growth story. This sector is growing rapidly as demand for smartphones, consumer electronics, and Internet of Things (IoT) devices increases.

PLI (Production Linked Incentive) schemes and other government initiatives have further accelerated its growth, reducing reliance on imports and encouraging local manufacturing.

Additionally, India’s push to become self-sufficient in semiconductor production has opened up numerous opportunities. Manufacturing units can meet the demand for semiconductor chips in a variety of industries, from automotive to healthcare. 

With a skilled workforce, low production costs, and strong policy support, India has everything it needs to become a global hub for electronics and semiconductor production.

2. Electric Vehicles (EVs)

As electric vehicles (EVs) become more common, the automotive industry is trending in a new direction. India is experiencing an EV adoption boom due to rising fuel prices and a global push for sustainability. 

The government’s ambitious Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) policy is playing a key role in supporting this transition.

There’s a lot of potential in manufacturing EV parts like batteries, motors, and charging infrastructure. The huge market size of India, coupled with a growing preference for green transportation, makes this sector highly promising. 

Electric vehicle manufacturing allows businesses to contribute to reducing carbon emissions and make use of a market that is expected to grow exponentially over the next few years.

3. Renewable Energy

Image by user6702303 on Freepik

A key component of India’s sustainability goals is renewable energy. With targets to reach 500 GW of renewable energy capacity by 2030, India offers huge opportunities for manufacturers.

Solar panels, wind turbines, energy storage systems, and other green technologies are in high demand. We, at VMS, have also received more inquiries about renewable energy over the past few years and have completed many projects related to renewable energy and solar module manufacturing.

The government’s Make in India initiative and incentives for clean energy projects further boost this sector’s attractiveness. By investing in renewable energy manufacturing, you are aligning yourself with global trends and helping the environment while making a profit in the long run.

4. Agro & Food Processing

India’s agricultural sector is one of the strongest pillars of its GDP, and its agro and food processing industry has huge potential. The demand for processed and packaged foods is increasing due to a growing population and rising middle-class incomes.

By establishing cold storage, packaging, and processing units, farm produce can be transported from farm to consumer.

© Frozculina

Government schemes such as Pradhan Mantri Kisan Sampada Yojana (PMKSY) aim to modernize the food processing industry, creating an enabling environment for investment. 

Export opportunities for processed Indian foods also contribute to the sector’s growth. This sector is not only profitable but also contributes to reducing food wastage and improving farmer incomes.

5. Healthcare and Pharmaceuticals

Healthcare and pharmaceutical industries in India are among the largest in the world, earning international recognition as “Pharmacy of the World”.

Image by freepik

Pandemic highlights the importance of a strong manufacturing infrastructure for vaccines, medical equipment, and essential medicines. There is an increased demand for affordable healthcare solutions in this sector, which is contributing to strong growth in the sector.

The Indian government’s focus on bulk drug parks and incentives for medical device manufacturing are encouraging domestic production.

Bulk Drug Parks are specialized industrial zones dedicated to manufacturing bulk drugs or active pharmaceutical ingredients.

Innovation opportunities in areas such as biotechnology and medical technology make this sector even more attractive.

Take Advantage of Opportunities in India’s Emerging Manufacturing Sectors with VMS

India’s emerging manufacturing sectors are driving economic growth, creating jobs, and aligning with global trends. 

From advanced technologies like semiconductors and EVs to sustainable solutions in renewable energy, these industries promise significant returns for businesses and investors. Due to India’s inherent strengths and government policies that support these sectors, this is the perfect time to get involved!

For expert guidance on setting up manufacturing facilities in these sectors, connect with VMS Consultants today!