“India has an unprecedented opportunity to redefine its global position in manufacturing. With bold policy moves and accelerating demand in areas like EVs and advanced electronics, India is building both the foundation and the forward momentum to lead across sectors.” Natarajan Sankar, Managing Director and Partner at BCG
“This is not just about scale; it’s about strategic self-reliance. India is no longer just assembling; it is designing, innovating, and integrating into the global value chain.” Ishang Jawa, Managing Director and Partner at BCG
“Winning in advanced manufacturing and deep-tech is essential to realising the vision of Viksit Bharat 2047. By mobilizing PhD talent across India and the Indian diaspora in the US, and with targeted policies that help deep-tech startups reach revenue faster, we can turn this vision into reality.” Sudipto Sannigrahi, Managing Director, Z47
India is poised to become a global industrial powerhouse by 2047, with manufacturing’s share of GDP targeted to rise from approximately 17 percent today to around 25 percent. Flagship programmes such as Make in India, Atmanirbhar Bharat, and Production Linked Incentive (PLI) schemes are rapidly expanding domestic capacity. A new report by Boston Consulting Group (BCG) and Z47 titled Digitizing Make in India 3.0, outlines how five sectors could anchor a US$ 25 trillion industrial opportunity by 2047: electronics, defence, automotive and EV, energy, and pharmaceuticals.
“India has an unprecedented opportunity to redefine its global position in manufacturing,” said Natarajan Sankar, Managing Director and Partner at BCG. “With bold policy moves and accelerating demand in areas like EVs and advanced electronics, India is building both the foundation and the forward momentum to lead across sectors.”
Sector-wise Overview
Semiconductors: Market projected to grow from US$ 33B to 117B by 2030
Automotive and EV: India holds 9% of global EV stock with 2.08M vehicles
Defence: 92% of FY25 contracts awarded domestically, exports reached ₹23,000 Cr
Energy: India achieved 50% non-fossil power capacity five years ahead of target
Pharmaceuticals: Produces 60% of global vaccines, pharma market to hit US$ 130B
Domestic Scale Meets Global Demand
Electronics and semiconductors are foundational to multiple end-sector with India’s semiconductor demand projected to grow from US$ 33 billion in 2022 to US$ 117 billion by 2030. Ishang Jawa, Managing Director and Partner at BCG, noted, “This is not just about scale; it’s about strategic self-reliance. India is no longer just assembling; it is designing, innovating, and integrating into the global value chain.”
That shift is already visible. Over 99% of mobile phones sold in India are now domestically produced, compared to just 26% in 2014–15. This sharp rise in electronics manufacturing reflects the impact of the PLI schemes and India’s emergence as a preferred alternative to global supply concentrations.
Bold Leaps in EV and Auto Components
EV sales in India have grown from ~50,000 in 2016 to over 2 million in 2024, now accounting for ~9% of the global EV stock. According to Mr. Natarajan, “India has built critical demand momentum. The next step is to scale exports of EV components, wiring harnesses, and power systems, and localize high-value electronics manufacturing.”
The report highlights a US$ 100 billion export opportunity in auto components, as global markets increasingly source high-value parts from India. “India’s edge lies in quality, scale, and now, in high-tech integration,” added Mr. Natarajan.
Building Regional Powerhouses
To realize its 2047 vision, India is leaning on regional manufacturing clusters across defence, EV, and semiconductors. Corridors like Noida–Chennai–Hosur and Dholera are already showing results. “These clusters enable co-location of suppliers, shared labs, logistics, and skilled talent. They reduce cost, increase speed, and foster innovation,” said Mr. Jawa.
A world-class talent engine – built on PHDs, research leaders, and returning diaspora expertise – will be central to India’s manufacturing leap. “Winning in advanced manufacturing and deep-tech is essential to realizing the vision of Viksit Bharat 2047,” said Sudipto Sannigrahi, Managing Director at Z47. “By mobilizing PhD talent across India and the Indian diaspora in the US, and with targeted policies that help deep-tech startups reach revenue faster, we can turn this vision into reality.”
Key Imperatives for India to consider:
Scaling R&D, Design and IP Creation: To consider ring-fencing multi-year R&D budgets, expanding DLI, and accelerating commercialization of India-owned design.
Strengthening talent and reverse brain drain: Create process-engineering academies, attract global/returnee researchers, and embed PhD-level talent across advanced manufacturing.
Develop World-Class Cluster Ecosystems: Expand multi-sector clusters with shared testing labs, bonded logistics, skill hubs, and vendor networks to improve cost and innovation velocity.
Deepen Private Sector & Startup Participation: Enable venture-client models, simplify procurement norms, and expand growth-stage capital to help startups co-develop critical technologies.
“India’s momentum is real, but sustaining it requires investment in upstream capabilities, risk capital, and technology adoption,” said Mr. Jawa. “By embedding innovation and export readiness into its manufacturing strategy, India can turn policy into lasting global leadership.”
