Will 88% of Manufacturers Expand Operations Thanks to India's Infrastructure Initiative?
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Synopsis
A recent report reveals that 88% of manufacturers in India plan to expand their operations, driven by the government's robust infrastructure initiatives. This surge in confidence signals a transformative era for the manufacturing sector, aligning with strategic policies aimed at self-reliance.
Key Takeaways
- 88% of manufacturers intend to expand operations.
- Government infrastructure projects are pivotal for growth.
- Improved logistics and transport access boosts confidence.
- Large enterprises see a sharper impact from these initiatives.
- Long-term strategies are essential for sustaining growth.
New Delhi, June 27 (NationPress) The government's infrastructure initiative has significantly impacted capital investment decisions for 88% of manufacturers, indicating a rise in confidence to expand operations, as reported on Friday.
India's manufacturing and logistics landscape is witnessing a profound transformation, fueled by robust policy support and extensive infrastructure investments.
A report by Cushman & Wakefield, titled 'Elevating India’s Manufacturing Resilience: Charting the Path to Self-Reliance,' shows heightened optimism regarding government-led infrastructure projects such as Bharatmala, Sagarmala, Dedicated Freight Corridors, and the National Industrial Corridor Development.
Approximately 86% of surveyed manufacturers affirmed that these projects have positively impacted their business operations, while 95% acknowledged enhanced access to logistics and transport infrastructure.
For larger enterprises, the influence is even more pronounced — 94% indicated that these improvements have been crucial in shaping their expansion strategies.
While the infrastructure expansion has set the stage for industrial growth, government policies like the Production-Linked Incentive (PLI) schemes and Make in India are guiding strategic priorities.
More than 40% of participants noted that these schemes have made a substantial impact on their operations.
The National Logistics Policy (NLP) and National Industrial Corridor Development (NICD) were highlighted by 54% of respondents as particularly advantageous, especially for MSMEs, where logistics accessibility and industrial park connectivity serve as vital enablers, the report stated.
Significantly, 77% of respondents felt that the ease of doing business has improved, a sentiment that increases to 86% among large firms.
“India's manufacturing sector is undergoing a structural transformation. Our findings demonstrate a strong correlation between infrastructure investment, policy clarity, and industry ambitions,” stated Gautam Saraf, Executive Managing Director, Mumbai and New Business at Cushman & Wakefield.
To maintain this momentum, India must tackle deep-seated cost and capacity disparities — particularly in logistics, integrated facilities, and MSME productivity.
“Plug-and-play industrial parks, multimodal logistics networks, and enhanced land aggregation frameworks are not merely facilitators; they are essential levers for translating policy momentum into production-ready outcomes,” Saraf added.
To support sustainable growth, the report proposes a five-pronged strategy: expedite the creation of plug-and-play industrial parks; reassess the criteria defining MSMEs to encourage scalability; accelerate the rollout of multimodal logistics parks (MMLPs); invest in targeted skill development initiatives; and empower MSME exports through unified digital platforms and incentives.
Point of View
It is clear that the alignment of government policies and infrastructural development is pivotal for enhancing business confidence and operational scalability. The insights presented in the report underscore a transformative phase for India’s manufacturing sector, driven by strategic investments and policy clarity.
NationPress
27/06/2025
Frequently Asked Questions
What percentage of manufacturers plan to expand operations?
According to the report, 88% of manufacturers are planning to expand their operations due to the government's infrastructure initiatives.
What initiatives have positively influenced manufacturers?
Manufacturers have cited initiatives such as Bharatmala, Sagarmala, Dedicated Freight Corridors, and the National Industrial Corridor Development as key influencers.
How has the ease of doing business changed?
77% of respondents feel that the ease of doing business has improved, rising to 86% among large firms.
What is the significance of the report by Cushman & Wakefield?
The report highlights the strong link between infrastructure investment and the confidence of manufacturers to expand, which is crucial for India's economic growth.
What strategy does the report propose for long-term growth?
The report suggests developing plug-and-play industrial parks, reassessing MSME definitions, and investing in logistics and skill development to support sustainable growth.
