Why India is not mentioned as often as China in global manufacturing discussions?
India is not mentioned as often as China when it comes to global manufacturing primarily because China's rise in this domain was rapid, state-led, and heavily subsidized. Over the past few decades, China has become the "world’s factory" by building massive industrial infrastructure, offering low-cost production, and aggressively courting export markets. This centralized and state-supported approach helped China dominate headlines in global manufacturing. In contrast, India's manufacturing sector has followed a more organic and gradual path, which, although slower, may now be emerging as an advantage given the shifting geopolitical environment across the world.
India's manufacturing growth has largely been driven by private entrepreneurship and domestic market forces rather than a strong government push. Unlike China's centralized planning, India’s progress in manufacturing is more decentralized, shaped by market demands, competitive private enterprises, and regional strengths. This organic growth pattern has made India’s manufacturing sector inherently more flexible and resilient. It has avoided the pitfalls of overcapacity or overdependence on any one global supply chain partner, allowing it to adapt better in today’s volatile geopolitical scenario.
The world is now witnessing increased geopolitical fragmentation. Rising tensions between the U.S. and China, economic sanctions, trade realignments, and supply chain disruptions due to pandemics or conflicts have all made over-concentration in one country a risky strategy. As companies seek alternatives to reduce their dependency on China—a shift commonly referred to as the “China Plus One” strategy—India is emerging as a serious contender. India’s democratic governance, adherence to rule of law, and policy stability offer reassurance to global investors and manufacturers looking for long-term partners in a divided world.
India’s manufacturing sector is also growing in areas where the country already holds natural advantages. In pharmaceuticals, India is recognized as the “pharmacy of the world.” The automotive and auto component sectors are globally competitive, while traditional strengths in textiles and garments continue to evolve with modern capabilities. Furthermore, with the government’s targeted interventions like the Production-Linked Incentive (PLI) schemes, sectors like electronics manufacturing and renewable energy are gaining traction. Importantly, this development is happening not just because of government push, but because of increasing domestic demand, which ensures long-term sustainability.
In the current global context, India’s other strengths are also coming to the forefront. It has a large and young workforce ready to support labor-intensive industries. The widespread use of English, a vibrant entrepreneurial ecosystem, and significant progress in digital public infrastructure have made India increasingly attractive to global businesses. Initiatives like UPI, GST, and the Gati Shakti infrastructure plan are reducing transaction costs and improving efficiency in doing business across states.
Global recognition of India’s potential is also growing. International companies and policymakers are acknowledging India’s importance in building resilient global supply chains. India’s active participation in forums like the Quad and IPEF, recent free trade agreements with countries like the UAE and Australia, and the successful hosting of major diplomatic summits like the G20 are all signs that India is stepping into a more prominent global economic role.
While India may not yet match China in terms of industrial scale or manufacturing volume, its model of growth is proving to be more durable and geopolitically stable. The organic, domestically driven evolution of India's manufacturing base aligns well with a world that is moving from a singular focus on cost-efficiency toward greater resilience, diversification, and trust. In that sense, India's time in the global manufacturing spotlight may just be beginning.
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