New Delhi: The manufacturing sector’s share in the Indian GDP will rise to 25 per cent from approximately 17 per cent at present, and the country is poised to become a global industrial powerhouse by 2047, said a joint report from the Boston Consulting Group (BCG) and Z47.
Flagship programmes, such as Make in India, Atmanirbhar Bharat, and production-linked incentive (PLI) schemes, are rapidly expanding domestic capacity, said the report ‘Digitizing Make in India 3.0’.
The report outlines five sectors - electronics, defence, automotive and EV, energy, and pharmaceuticals - that could anchor a $25 trillion industrial opportunity by 2047.
“Multiple priority areas emerge for India’s growth vision in the manufacturing sector going forward, such as Electronics & Semiconductors, Defence, Automotive & EV, Energy Manufacturing & Transition, and Pharmaceuticals — as they combine strong growth, industry push and a clear policy/investment runway,” the report said.
The report also mentioned that India’s next manufacturing leap could revolve around four potential pillars - fostering innovation, strengthening strategic depth, enhancing competitiveness and driving efficiency through technology adoption.
“Each pathway represents a set of options for policymakers and industry participants to consider in enabling India’s manufacturing transformation,” it added.
To realise 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,” it noted.
In sectors as electronics and semiconductors, India’s end-market was at $33 billion in 2022 and is projected to reach $117 billion in 2030.
In defence, the allocated budget of Rs 6.81 lakh crore for (FY25-26), doubled over a decade, with a clear Make-in-India push.
“Imports have declined 9.3 per cent (vs 2015-19), 92 per cent of FY25 contracts were awarded to the domestic industry. Exports have reached Rs 23,000 crore and over $160-190 billion domestic pipeline currently exists across 75+ platforms,” it said.