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India has an opening as tariffs and geopolitical uncertainty push companies to diversify production. Capturing that demand will depend on the competitiveness of its manufacturing ecosystem.
Speaking at ISID, EAC-PM Chairman S Mahendra Dev highlighted electronics as evidence of India’s potential: exports have grown more than eightfold in a decade. He also identified barriers to broader industrial growth: power and logistics costs, input duties, compliance burdens and land availability.
The bigger signal: India needs more firms that can scale.
Dev flagged a shortage of mid-sized manufacturers between small enterprises and large businesses. That gap matters because global buyers need suppliers capable of delivering volume, competitive pricing and consistent quality. Market access alone cannot secure those orders.
Why it matters
For supply-chain leaders, the operating implication is clear: assess whether supplier capacity, production readiness and fulfilment can support larger commitments. Diversification creates the opening; dependable execution determines how much business a manufacturing network can sustain.
