India has become the sixth-largest manufacturing economy in the world, according to wealth management firm Nuvama, and a new era of growth driven by recent reforms and strategic initiatives like the Made in India is about to begin.
“A strong foundation for India’s manufacturing sector has been laid over the past ten years by important reforms like the China + 1 strategy, the Unified Payments Interface (UPI), the Real Estate Regulatory Authority (RERA), the Insolvency and Bankruptcy Code (IBC), the Goods and Services Tax (GST), the Production Linked Incentives (PLI) scheme, and the Made in India initiative,” according to the Nuvama report.
It claimed that as a result of these reforms, there are now more investment prospects because of the better balance sheets, greater cash availability, and shorter days of accounts receivable.
The manufacturing scene in India has created investment opportunities in a wide range of industries. Road, airport, rail, and port infrastructure projects are leading the way, as are emerging industries like data centers, electronics manufacturing, defense, the EV ecosystem, and energy transition, according to the research.
It further stated that India’s manufacturing is being driven by these industries.
Additionally, it notes that in stark contrast to the previous cycle, which was headed by more than 80 corporates across five to six industries, the current capex cycle is being driven by over 400 corporates and 600 unlisted entities distributed across more than 35 industries.
The paper goes on, “This cycle is poised for sustained growth, offering numerous avenues for investment, thanks to more diversified funding sources.”
According to the report, huge investments are being made in the power industry, where the market is worth Rs 6,500 crore for power transformers and Rs 6,300 crore for distribution transformers.
“The markets for switchgear and capacitors (HV & LT) are also significant, with respective values of Rs 49/326 billion and Rs 7 billion,” the research continued.
The market for cables (LV & HV) is currently valued at Rs 66,200 crore, and major investments are also being made in conductors, energy meters, transmission towers, and insulators.
According to the Nuvama report, the government’s Make in India drive has revolutionized the defence industry, especially with regard to capital purchase plans meant to modernise the armed forces and the Defence purchase Council’s Defence Procurement Procedure (DPP).
The Indian defense ecosystem is completely changing, with an emphasis on increasing exports while simultaneously meeting domestic needs. According to the article, two defense corridors have been established in Tamil Nadu and Uttar Pradesh with the goal of boosting exports and decreasing imports.
According to the Nuvama report, the government’s Make in India drive has revolutionized the defence industry, especially with regard to capital purchase plans meant to modernise the armed forces and the Defence purchase Council’s Defence Procurement Procedure (DPP).
The Indian defense ecosystem is completely changing, with an emphasis on increasing exports while simultaneously meeting domestic needs. According to the article, two defense corridors have been established in Tamil Nadu and Uttar Pradesh with the goal of boosting exports and decreasing imports.
Positive indigenization lists of significant equipment, assemblies, and subsystems have given the indigenization push impetus, guaranteeing a consistent rise in defense items made in the country.
The research also notes that India’s road toward self-reliance is further strengthened by the offset policy, which requires foreign vendors to reinvest at least 30% of their contracts in the Indian defense sector.
