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Indian stakeholders and Government have taken proactive steps to increase the FDI, many global legends want to move to India for their manufacturing operations. Respectable mentions of such legends include Apple ramping up iPhone and component manufacturing in India. Foxconn has expanded into semiconductors and new production lines in Karnataka and Telangana. Samsung has large-scale manufacturing bases in Ranjangaon and Greater Noida. LG already has highly automated plants flourishing in Maharashtra and Uttar Pradesh. TDK Corporation, the Japanese electronics parts maker, is establishing a facility in Haryana to manufacture lithium-ion battery cells.
All the above instances show that India’s credibility has been built over time. Vishwa Guru is not just a narrative but a protocol to mark India as the manufacturing hub of the globe. Let’s explore what made all these global brands move their critical operations to India, bypassing all potential Asian countries such as China, Vietnam, Indonesia, Thailand and Malaysia. Some key parameters make India the best bet for these multinational companies; for easy comprehension, we have categories of factors such as economic factors, political factors, social factors, geographical and environmental factors, and micro factors. Let’s explore one at a time:
Cost Advantage: India became the most populated country in 2023; hence, it offers significantly lower labour costs than China and other traditional manufacturing hubs, making it attractive for labour-intensive industries.
Growing Domestic Market: With 8.2 billion people worldwide, there are around 17 Indians in every 100 people. A rising middle class, rapid urbanisation, and increasing disposable incomes fuel strong domestic demand for manufactured goods, especially in sectors like electronics and automobiles.
Government Incentives: Initiatives such as the Production Linked Incentive (PLI) scheme, liberal regulatory reforms, ease of doing business by reducing red tape, and favourable tax reforms provide direct financial incentives and a more business-friendly environment.
Foreign Direct Investment (FDI): Policy reforms along with providing resources via plug-and-play zones, industrial corridors, logistics infrastructure, and investment-ready zones, supported by the National Monetisation Pipeline and dedicated sectoral facilities. This has led to increased FDI inflows, with global giants like Siemens, GE, and Samsung establishing production bases in India.
Proactive Government Policies: The present government emphasises manufacturing as most of the demographic can be assimilated by this sector. Programs like “Make in India” to encourage domestic and foreign companies to manufacture the present government has put more emphasis on manufacturing, as most of the demographic products in India. “Gati Shakti” focuses on infrastructure and logistics capacity building framework and Production Linked Incentive (PLI) Schemes, incentivising incremental production in 14 key sectors such as electronics, pharmaceuticals, automobiles, and other critical industries.
Geopolitical Dimensions: Land disputes, sovereignty juggles, trade wars and tariffs, institutional sanctions and other geopolitical tensions controlling trade and commerce activities. For instance, the Russia-Ukraine war, the US-China tariff tussles, and the tense trade dynamics between the US-Canada-Mexico and the Middle East crisis have prompted global firms to diversify supply chains and reduce overreliance on a single country, positioning India as a strategic alternative.
Regulatory Reforms: India’s National Single Window System (NSWS) allows businesses to apply for all regulatory approvals and clearances through a single digital portal. As a result, approval timelines for new manufacturing units have dropped by 30–50%. The Omnibus Technical Regulation (OTR) has also reduced bureaucratic hurdles, improving business efficiency. As a result of the World Bank’s ease of doing a report, India leapt from 142nd to 63rd position among 190 countries.
Demographic Dividend: As already stated, we have around 1.45 billion people in the country. Demography here is a large, young, and increasingly skilled workforce that is a major asset for manufacturers seeking a long-term labour supply. Fun Fact: The median age of the Indian population is 28.8 years, whereas for China, it is 39.5 years. Hence, the Indian workforce is more promising.
Job Giver Imperative: In the past decade, the world has seen many unicorns from India, initially from service sectors but now also from manufacturing sectors. Manufacturing is increasingly viewed as a cornerstone for India’s employment generation. Startups like Ather Energy (electric vehicles), Atomberg Technologies (energy-efficient appliances), Log Materials (advanced battery technology), Peer Robotics (collaborative industrial robots), and GreyOrange (robotics and warehouse automation) exemplify this stride.
Strategic Location: The Indian subcontinent is at the crossroads of South Asia, the Middle East, and Southeast Asia, which are critical factors; they give access to one-third of the global population to Western and European countries. Major gulfs, straights and mountain passes come under India’s jurisdiction, granting access to vital maritime chokepoints, including the Arabian Sea, Bay of Bengal, and proximity to the Strait of Malacca, one of the world’s busiest shipping routes hence coupled with expanding logistics and maritime infrastructure, enhances its appeal as a manufacturing and export hub.
Regional Manufacturing Clusters: States like Uttar Pradesh, Haryana, Gujarat, Maharashtra, and Tamil Nadu have developed robust industrial ecosystems, attracted sector-specific investments, and fostered innovation. For instance, automotives in Tamil Nadu and Haryana, chemicals in Gujarat, and electronics in Uttar Pradesh. Gujarat, Tamil Nadu, Maharashtra, and Odisha streamline global exports. Additionally, Maharashtra, Gujarat, and Tamil Nadu consistently rank top for FDI inflows, industrial proposals, and ease of doing business.
Digital Infrastructure Leapfrogging: India’s rapid adoption of digital technologies for financial transactions, regulatory compliance, disbursements of financial aid, and all other means. Digital frameworks such as UPI and other single-window processes streamline supply chain management, compliance, and financial transactions, making operations more efficient and transparent. For instance, as of May 2025, NSWS (National Single Window System) integrates approvals from 32 central ministries and 29 states, has processed over 67,000 applications, and granted over 75,000 approvals.
Sustainable Manufacturing Push: India is among the world’s top issuers of carbon credits, with over 1,700 registered CDM (Clean Development Mechanism) projects, and is developing a domestic carbon market to leverage sustainable manufacturing further. India benefits from more lenient trade and environmental compliance under UN and WTO rules, allowing it greater flexibility in tariffs, export incentives, and phased adoption of advanced standards.
Localised Innovation: Names like Tata Motors, Dixon Technologies, Bharat FIH, Kaynes Technology, and Mahindra, along with the rapid growth of the original design and equipment manufacturers market to $152 billion by 2025, shows that localised innovation by ODMs and OEMs is one of the reasons global brands tend to shift their manufacturing and design operations to India, clearly for faster innovation, cost efficiency, and greater product customisation for international markets.
The factors mentioned earlier might provide you with a bird’s eye view and a clear idea that India is a favourable country for global brands that want to optimise their manufacturing and design operations for the greater good of their businesses. Now, moving to the second question: How will this enterprise rush affect the employment dynamics in India? Let’s reflect on this idea.
Apple, Samsung, Toyota, Volkswagen, Boeing, GE Aerospace, Honda, Caterpillar, and many more expressed their desire to shift or have their facilities in India. This shift is already having a significant positive impact on employment dynamics:
India’s manufacturing sector registered a record-high rate of job generation in May 2025, with employment generation reaching its fastest pace. The sector has recorded consistent increases in employment for three consecutive quarters as of December 2024, and the National Manufacturing Mission alone aims to generate 2.2 million new jobs. Manufacturing output grew by 5.5% in January 2025, and the sector is projected to expand at a CAGR of 4.8% from 2025 to 2030, ensuring sustained job opportunities.
The opportunities in manufacturing are diverse, from high-tech positions in advanced manufacturing, electronics, EVs, and battery manufacturing to skilled labour in traditional industries like textiles, metalwork, and footwear. Growth in manufacturing also propels indirect job generation in logistics, retail, services, and SME supply chains, amplifying the overall employment impact.
Global brands are brining manufacturing and design operations, advanced technologies, automation processes, and Industry 4.0 practices to India. Since the nature of manufacturing jobs is evolving, India’s workforce needs to be ready for this super whirl of job opportunities by keeping their skills top-notch for these specialised roles.
Many new roles in the manufacturing sector are specialised and require technical expertise in robotics, automation, CNC milling, additive manufacturing, and quality control. The manufacturing sector, for example, is projected to create over 100 million new jobs by 2030, driven by rapid growth in advanced manufacturing. As India’s manufacturing output is expected to double from $717 billion in 2024 to $1.45 trillion by 2030, the demand for a future-ready, technically skilled workforce will be critical to maintain momentum.
The government is expanding vocational training and skill development programs to capitalise on these opportunities to ensure workers are prepared for specialised, high-value roles. One such initiative is TATA IIS, setting up Indian Institute of skills in Mumbai and Ahmedabad in partnership with the Ministry of Skill Development and Entrepreneurship (MSDE), Government of India. IIS Mumbai and IIS Ahmedabad have been established to provide world-class, hands-on training to India’s youth. Drawing from the Tata Group’s legacy of institution building, including IISc, TISS, and TIFR, TATA IIS is focused on creating a global benchmark for quality and relevance in vocational education.
The success of India’s manufacturing resurgence depends on bridging the skills gap and aligning workforce capabilities with industry needs. A skilled workforce is essential not only for meeting the immediate needs of global manufacturers but also for maintaining competitiveness, driving innovation, and ensuring long-term growth in the sector.
To support this growth, India invests in skill development programs, such as the Tata Indian Institute of Skills, which provides hands-on vocational training to equip the workforce for specialised roles. With sustained growth in the sector, India’s manufacturing employment is expected to rise significantly in the coming years.
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Inspired by the tree of knowledge, this logo implies a tree with interspersing dots representing various skills that the institute offers, making it a wholesome skilful tree. The tree’s bark represents individuals with different mindsets coming together with a common purpose of growth. Lastly, one can subtly see the acronym IIS which also represents students as figurines.
To date, we have trained around 650 students. Our alumni are working with notable companies, such as Torrent Power, Powellite Electricals, Tata Motors, Bajaj Auto, and L&T. . Equipped with holistic technical and business skills, many alumni have also chosen the path of entrepreneurship to realise their dreams.
We firmly believe in inclusion. Identifying segments that need us the most is one of our goals. We are mindful of reaching the tribals and marginalised and ensuring maximum women participation.
Learning from the industry is at our core. Our industry partners are deeply involved, right from course design and delivery to recruitment. Our current partners include Fronius, Universal Robots, SMC, Phillips Machine Tools, Multivista, Fanuc, MIR, Markforged, Schneider Electric, Lincoln Welders, Hexagon, Formlabs, ABB, Festo, Ather, Tata Motors, Thermax, Larsen & Toubro, Bajaj Auto Ltd., Carraro, Marriott, Indian Accent, Taj, Lollo Rosso, Tomato’s, Ramada by Wyndham, Novotel, La Milano Pizzeria, Renaissance Hotels, The Fern, Tatr, IFEA, The Job Plus, Happy Faces, Sewa.
The campus is situated on a 4.17-acre land parcel at Chunabhatti inside the National Skill Training Institute campus in the state of Maharashtra. The first phase of development comprises a 22,500-square-foot facility housing advanced manufacturing and electric vehicle laboratories. The facility also includes classrooms and advanced computer laboratories for training in allied areas, providing trainees with a real-world environment akin to working in the manufacturing industry. It is equipped to train approximately 190 students at a time.
Spanning over 2.5 lakh square feet, the campus features infrastructure that includes training facilities, hostels, and dedicated spaces for student activities, supporting comprehensive learning and growth.
