Featured Image

International News From the Field: India

Apr 24, 2024

India’s manufacturing PMI surged to a 16-year high of 59.1 in March from 56.9 in February, reflecting stronger growth of new orders, output, and input stocks and renewed job creation. The services PMI registered its strongest growth in 13 1/2 years, rising to 61.2 in March from 60.6 in February on the back of strong demand that spurred sales and business activity.  

In fiscal year 2023-24, India’s passenger vehicle (PV) segment sales soared to an all-time high of 3.94 million units, an increase of 8.45% over the previous fiscal year. SUVs secured a 50% market share. Overall auto retail sales in the fiscal year surged by 10.29%, reaching 24.5 million units. 

According to Jefferies, India’s defense sector is poised to experience a CAGR of 13% from 2023 to 2030, with an estimated domestic defense expenditure opportunity of $100-120 billion from FY24 to FY30. Though India is presently one of the top three defense importers in the world, focusing on indigenization will drive this double-digit growth. Defense exports from India surged 16-fold from FY17 to FY24, reaching $3 billion. It is projected to ascend to $7 billion at a CAGR of 21%. Key companies involved in this sector include Bharat Dynamics Ltd., Bharat Electronics Ltd., Tata Advanced Systems Ltd., Paras Defense & Space Technology, and Logic Fruit Technologies. 

India’s construction equipment sector is presently the third-largest market in the world. The market is currently valued at $7.3 billion and is projected to grow to $12 billion by 2028 at a CAGR of 8.3%. The year-over-year sales numbers for equipment in 2023 grew by 26%. Exports during this period grew by 3%. The sector will likely see around $4.5 billion worth of investment over the next six to seven years.

India added 24 GW of solar module and cell capacity in 2023. During the calendar year, the country added 20.8 GW of solar modules and 3.2 GW of solar cell capacity, taking the cumulative solar module manufacturing capacity to 64.5GW and the solar cell manufacturing capacity to 5.8 GW. Gujarat led the country’s PV module manufacturing capacity, followed by Rajasthan and Tamil Nadu.Telangana accounted for 39% of the annual solar cell production capacity, followed by Gujarat and Himachal Pradesh.

A few recently announced projects and investment news items are listed below:

  • Tesla Motors has signed a strategic deal with Tata Electronics to procure semiconductor chips for its worldwide operations. 

  • Wipro GE Healthcare is investing over $1 billionto boost its local manufacturing output and R&D. 

  • The JSW-MG Motors India joint venture intends to grow its EV segment to 1 million vehicles by 2030. The JV has committed to investing over $700 million to enhance its production capacity and plans to launch one new car every year.  

  • Hyundai and Kia have agreed with Exide Energy Solutions to initiate the localization of EV battery production in India. 

  • Craftsman Automation is setting up a green field plant in Bhiwadi, Rajasthan, to produce parts across three verticals: automotive powertrain, automotive aluminum products, and industrial engineering. This will cater to the burgeoning business opportunities in North India.

  • Bengaluru-based Mahindra Aerostructures signed a multiyear contract worth $100 million with Airbus Group. Mahindra will supply around 2,300 different metallic components to Airbus Atlantic in France.  

  • GE Aerospace is investing $30 million to upgrade its Pune-based manufacturing facility. The investment will add new projects and manufacturing processes to the facility by acquiring machines/equipment and specialized tools.

  • Jindal Advanced Materials (JAM) is partnering with Italian speciality chemical fiber manufacturer MAE to establish a cutting-edge carbon fiber facility in India. The plant will be built with an annual capacity of 3,500 metric tons and will produce low-to-high-tow carbon fibers, expanding capacity to reach 10,000 mt by 2027. 


For more information, please contact Arun Mahajan at AMahajan@AMTonline.org.

PicturePicture
Author
Arun Mahajan
Director - Chennai Tech Center
Recent international News
India advances as a global manufacturing hub, driven by sectors like automotive, electronics, and pharmaceuticals, as well as strategic reforms, infrastructure investments, and a wealth of opportunities. For more industry intel and other tidbits, read on.
Robust domestic demand, infrastructure development, and government initiatives reshape India's industrial landscape. Manufacturing output, especially in defense, and renewable energy production rise. For more industry intel and other tidbits, read on.
With a much higher manufacturing PMI, India outperforms other developed and emerging markets. Key factors sustaining the country’s growth include strong private consumption and a robust service sector. For more industry intel and other tidbits, read on.
Overseas orders, rising exports, and strong domestic demand drive India’s growth to its fastest pace in 10 months. Its momentum is sustained through increased industrial production and investments. For more industry intel and other tidbits, read on.
How high can India’s manufacturing PMI go? With activity reaching an all-time high, India is one of the most promising markets today, with incredible opportunities in the automotive and aerospace sectors. For more industry intel and other tidbits, read on.
Similar News
undefined
International
By Fred Qian | Aug 28, 2025

China’s push toward advanced manufacturing and automation means opportunities for global suppliers of precision tools, robotics, and digital manufacturing technologies as traditional tool imports soften. For more industry intel and other tidbits, read on.

4 min
undefined
International
By Mike Lauer | Aug 19, 2025

Southeast Asia is relieved with tariff reductions to levels unlikely to impact exports to the United States significantly. Despite other uncertainties, SEA continues to attract FDI in manufacturing. For more industry intel and other tidbits, read on.

5 min
undefined
Intelligence
By Christopher Downs | Aug 18, 2025

Oxford Economics now projects 2.9% growth in 2025 machine tool orders. See what’s driving the shift and get the full forecast at AMT’s MTForecast on Oct. 15-17 in Schaumburg.

5 min