Year-End Review: India Makes Significant Advances in Developing Future Technologies Across Various Industries
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New Delhi, Dec 31 (NationPress) India’s manufacturing sector is increasingly asserting its presence on the international stage across various industries, from electronics to steel. The country has now become the third-largest exporter of smartphones globally and achieved net exporter status in steel for the first time.
Thanks to government initiatives and strategic investments over the past decade, India has effectively positioned itself as a global manufacturing hub. The country has produced unprecedented volumes of crude steel to cater to both domestic and global demands and has made significant advancements in electric vehicles and consumer electronics. Even sectors previously considered niche, like toys, have witnessed remarkable growth, with exports soaring by an astonishing 239 percent and imports plummeting by 52 percent.
Additionally, India's pharmaceutical industry now boasts 748 USFDA-approved sites, showcasing its world-class manufacturing capabilities. The rise in production of solar panels and wind turbines illustrates India's increasing commitment to renewable energy.
The manufacturing sector in India has experienced exceptional growth in 2024, highlighting its evolution into a global powerhouse. This year also marks a decade of the Make in India initiative, which has driven substantial advancements in making India a manufacturing giant.
Over the last ten years, the Make in India initiative has significantly transformed the country's manufacturing landscape. Notable developments include the launch of Production Linked Incentive (PLI) schemes across 14 sectors, attracting investments exceeding Rs 1.28 lakh crore and generating over 8.5 lakh jobs. These initiatives have catalyzed growth in electronics, steel, pharmaceuticals, and defense manufacturing, evidenced by a 239 percent increase in toy exports and a 600 percent rise in mobile phone production.
India has become a net exporter of steel, with production having doubled, significantly reducing the reliance on imports for pharmaceuticals and telecom equipment. Defense exports have surged, reaching over 85 countries, while the country has also made noteworthy advancements in semiconductor manufacturing and renewable energy, enhancing its global manufacturing stature by 2024.
For the fiscal year 2023-24, India recorded an economic growth rate of 8.2 percent, supported by an industrial growth rate of 9.5 percent, with the manufacturing and construction sectors nearing double-digit growth.
A series of initiatives have streamlined India’s manufacturing ecosystem across sectors in 2024, including the Jan Vishwas 2.0 Bill and the development of plug-and-play industrial parks near 100 cities that attracted significant investments.
India achieved its highest levels of steel production and consumption in FY24, becoming a net exporter of finished steel, with production having increased by 50 percent since 2014.
The pharmaceutical sector, valued at $50 billion, remains the world’s third-largest by volume. Investments of Rs 30,000 crore under PLI schemes have driven growth in biosimilars, vaccines, and generic drugs, further solidifying India’s global leadership in providing affordable healthcare solutions.
The Micro, Small, and Medium Enterprises (MSMEs) continue to be the backbone of India’s manufacturing sector, contributing 35 percent of total output and 45 percent of exports. As of 2024, 4.7 crore MSMEs are registered on the Udyam Portal, taking advantage of credit schemes that have provided 92 lakh guarantees worth Rs 6.78 lakh crore.
The Prime Minister's Employment Generation Programme has also supported over 89,000 micro-units, resulting in the creation of jobs for 7.13 lakh people in FY24.
India's Production Linked Incentive (PLI) schemes have been pivotal in accelerating the nation’s manufacturing sector, establishing it as a global hub for industrial production.
The PLI schemes have facilitated investments exceeding Rs 1.28 lakh crore, generating 8.5 lakh jobs and boosting exports by Rs 4 lakh crore. This has led to production and sales worth Rs 10.8 lakh crore, demonstrating the significant impact of this policy.
The electronics manufacturing sector, in particular, has seen remarkable growth, with domestic production increasing by 400 percent from Rs 1.9 lakh crore in 2014 to Rs 8.22 lakh crore in FY23.
This includes the mobile phone segment, where the direct workforce has more than tripled between FY17 and FY22, greatly benefiting female workers.
The pharmaceutical sector has also greatly benefited, with Rs 30,000 crore in investments under the scheme, bolstering India’s capabilities in producing APIs, vaccines, biosimilars, and biologics, thus reinforcing its position as the world’s third-largest pharmaceutical market by volume. Similarly, PLI support for household goods like air conditioners and LED lights has diminished import dependency, bolstered domestic production, and created jobs.
The steel sector has undergone a remarkable transformation, with production rising by 70 percent since 2014, making India a net exporter of finished steel. The success of the PLI schemes has also extended to emerging areas, with 2024 witnessing the introduction of incentives for biomanufacturing and the launch of the Critical Mineral Mission, designed to secure essential resources for manufacturing sectors such as EVs and semiconductors.
By encouraging large-scale investments, creating job opportunities, and boosting exports, the PLI schemes have positioned India as a crucial participant in global value chains.
The electronics manufacturing cluster initiative attracted Rs 40,000 crore in investments, generating 5 lakh jobs, while solar capacity increased 25-fold since 2014, showcasing India's commitment to clean energy.
Over the last decade, textiles and apparel exports have expanded by 20 percent, reaching Rs 2.97 lakh crore and making India one of the top five global exporters in this sector.
India's semiconductor industry has reached a historic milestone in 2024. The country is on track to achieve an annual capacity of 2,500 crore chips, producing semiconductors for various applications, including automotive and electric vehicles, as well as consumer electronics and telecom.
The establishment of India's first semiconductor fabrication plant, with an investment of $100 billion, will enable the production of 50,000 wafer starts per month, catering to sectors such as defense, EVs, and high-performance computing. Indian companies have also begun producing silicon carbide devices to meet the surging global demand for advanced chips.
Alongside this, research in semiconductor manufacturing has reached new heights, with initiatives like the National Research Foundation, which allocated Rs 1 lakh crore to promote private-sector-driven innovation.
Moreover, the upcoming Bharat Semiconductor Research Center and collaborations between Semiconductor GCCs and IITs are upskilling engineers and advancing next-generation chip development.
