Manufacturing

India’s Chief Economic Advisor, V Anantha Nageswaran, shared insights into the country’s economic prospects amidst global disruptions, emphasizing the favorable outcomes of the ongoing trade shifts. The growing trend of companies looking to diversify away from China, driven by U.S. tariffs, presents India with a significant opportunity to become a key manufacturing hub. Coupled with reduced crude oil prices, India's economic trajectory remains promising.

India's industrial production growth showed a slight improvement in March 2025, rising to 3% from 2.7% in February. However, this represents a marked slowdown compared to the 5.5% growth recorded in March 2024. Poor performance across key sectors such as manufacturing, mining, and power production contributed to this deceleration. The data, released by the National Statistics Office (NSO), also revealed a downward revision of February's growth figure, further highlighting the challenges facing India's industrial output.

In a bid to enhance the Make in India initiative, the government has established an inter-ministerial committee to draft the framework for the proposed National Manufacturing Mission. Headed by Niti Aayog CEO B.V.R. Subrahmanyam, the committee is conducting consultations with stakeholders across sectors. The mission, announced in the Union Budget of 2025, aims to improve the ease of doing business, create a future-ready workforce, strengthen the MSME sector, and promote technological innovation.

Shanthi Gears Ltd, a key player in India’s industrial gear manufacturing sector and a Murugappa Group subsidiary, has released its financial results for the quarter and full fiscal year ending March 31, 2025. The company reported a slight year-on-year dip in Q4 profits, but annual figures indicate robust growth in both profit and revenue. Strategic focus on capital efficiency, cash flow, and sustained order intake has enabled the company to maintain stability amid a complex macroeconomic backdrop.

Funskool India Ltd, a prominent player in the toy manufacturing sector, is aiming to achieve a revenue target of USD 40-45 million for the current financial year, capitalizing on the evolving global trade landscape and the growing demand for Indian-made products. The company registered a strong 20% year-on-year growth in revenue for FY2024-25.

As India charts its course toward becoming a developed nation by 2047—the centennial year of its independence—its policymakers are confronted with a formidable set of challenges. Chief among them is the imperative to generate at least 8 million jobs annually over the next decade, while simultaneously raising the share of manufacturing in GDP.

Haryana Chief Minister Nayab Singh Saini has laid out an ambitious roadmap for transforming the state into a manufacturing hub by 2047, aligning with the national goal of a 'Viksit Bharat' or developed India. Over the past decade, Haryana has emerged as a key industrial power center in India, thanks to pro-business policies and labor welfare initiatives. The state's latest budget emphasizes increased investment in industrial infrastructure, welfare schemes for workers, and support for startups.

India’s industrial activity moderated sharply in February 2025, with factory output growing at a subdued pace of 2.9%—the slowest in six months—amid sector-wide deceleration and a high base effect. The Index of Industrial Production (IIP) data, released by the National Statistics Office (NSO), reflects a broad-based softening in manufacturing and mining, while electricity generation remained the only area of modest growth.