India’s manufacturing environment has remained positive. Government spending on infrastructure continues at a steady pace, domestic demand remains strong, and global supply chains are still gradually shifting toward India.
From December 2025 through February 2026, India announced significant investments across the automotive, aerospace, electronics, semiconductor, energy equipment, and industrial machinery sectors. Many of these projects involve advanced manufacturing technologies, automation, precision machining, and digital production systems, areas where AMT member companies have strong capabilities and significant opportunities.
From a macroeconomic perspective, conditions remain supportive for manufacturing growth. India’s GDP growth for fiscal year 2025-26 has been revised upward to the 7.4%-7.6% range, higher than earlier projections, with third-quarter growth reported at about 8.2% year over year. The IMF has also revised its growth forecast for India upward to around 7.3%. The February 2026 manufacturing PMI reached 56.9, a four-month high, while the composite PMI stood at 59.3, indicating strong overall economic activity. A key factor behind this resilience is domestic demand, which contributes nearly 60% of GDP and helps cushion the economy from global volatility. Monetary conditions have also become more supportive. The Reserve Bank of India has reduced interest rates by about 125 basis points since early 2025; inflation has moderated compared to last year; and capital expenditure by both the government and the private sector remains strong. Production Linked Incentive (PLI) schemes, state-level incentives, and continued infrastructure upgrades are attracting both foreign direct investment and new domestic manufacturing projects.
Below is a summary of key investment developments across manufacturing sectors over the last three months.
1) Automotive and EV Manufacturing
The automotive sector remains one of the largest sources of new manufacturing investment in India, particularly in electric vehicles, components, and advanced powertrain systems.
Tata Motors announced an investment of approximately $1.1 billion to expand EV and battery manufacturing capacity in Gujarat, including new assembly lines, battery pack integration, and automation upgrades.
Hyundai Motor India confirmed a $650 million expansion at its Tamil Nadu facility to support new EV platforms and export production.
Maruti Suzuki has begun production at its Kharkhoda plant in Haryana and has allocated an additional $900 million to tooling, robotics, and machining lines.
Bosch India announced investments of about $200 million in precision components, fuel systems, and electrification technologies.
TVS Motor committed nearly $300 million toward EV production, motor manufacturing, and electronics integration.
These projects require significant amounts of machining equipment, automation, metrology, cutting tools, and digital manufacturing solutions.
2) Semiconductor and Electronics Manufacturing
India continues to push aggressively into semiconductor and electronics manufacturing, and several projects are now moving from the announcement stage into execution.
Micron Technology’s semiconductor assembly and test facility in Gujarat continues construction, with a total investment of about $2.75 billion, including incentives.
Tata Electronics announced an additional $3 billion investment toward semiconductor packaging and electronics manufacturing in Gujarat and Assam.
Foxconn confirmed plans for a $1.5 billion expansion of electronics manufacturing operations.
Dixon Technologies announced new investments of approximately $300 million for mobile phone and consumer electronics production.
Bharat Electronics Ltd. approved about $250 million for defense electronics and radar manufacturing capacity.
Electronics manufacturing projects typically require high-precision machining, clean-room-compatible equipment, automation, and advanced inspection systems, all of which are aligned with AMT member strengths.
3) Aerospace and Defense Manufacturing
India’s aerospace and defense sector continues to expand due to strong government procurement, export programs, and localization requirements.
Hindustan Aeronautics Ltd. approved projects totaling about $600 million for aircraft manufacturing, engine components, and machining facilities.
Tata Advanced Systems announced a $400 million expansion for aerospace structures and precision components.
Larsen & Toubro allocated about $350 million toward defense systems and heavy engineering.
Bharat Forge committed $200 million to expand its aerospace forgings and machining operations.
Tier 2 suppliers in Karnataka and Telangana announced additional investments totaling about $150 million in CNC machining, fabrication, and tooling.
These projects are particularly relevant for AMT members supplying multi-axis machining, additive manufacturing, metrology, and automation technologies.
4) Energy, Power Equipment, and Industrial Machinery
Energy transition, grid expansion, and infrastructure projects continue to drive demand for heavy engineering and industrial equipment.
Siemens Energy India announced an investment of about $500 million to manufacture turbines, generators, and grid equipment.
GE Vernova India committed roughly $400 million for power equipment and wind turbine components.
Adani Group announced manufacturing investments of approximately $1.2 billion across solar equipment, wind components, and fabrication.
Bharat Heavy Electricals Ltd. approved about $300 million for plant modernization.
Cummins India confirmed around $250 million for engine manufacturing expansion.
These projects typically require large machine tools, welding automation, heavy machining, and digital production systems.
5) Steel, Metals, and Metal Forming
Metalworking and materials production remain strong investment areas, supported by infrastructure spending, automotive demand, and export growth.
JSW Steel announced an expansion of about $1 billion across Karnataka and Odisha.
Tata Steel approved approximately $800 million for modernization and specialty steel production.
ArcelorMittal Nippon Steel India confirmed it will invest about $700 million in downstream processing.
Several metal forming and forging companies announced investments totaling roughly $250 million in presses, machining, and automation.
These projects create demand for cutting tools, machining centers, forming equipment, and inspection systems.
6) Industrial Parks and Manufacturing Infrastructure
State governments continue to invest heavily in industrial corridors, electronics parks, and aerospace clusters.
Karnataka approved investments totaling about $600 million in industrial parks.
Tamil Nadu announced plans to invest about $500 million in new manufacturing zones.
Telangana cleared projects worth nearly $450 million in electronics and aerospace parks.
Gujarat approved about $700 million for the development of an industrial corridor.
These developments will create opportunities over the next several years as new plants are built and production ramps up.
Overall Investment Summary (Last Three Months) by Sector and Approximate Investment
Automotive & EV: $3.1 Billion
Semiconductor & Electronics: $7.8 Billion
Aerospace & Defense: $1.7 Billion
Energy & Industrial Equipment: $2.7 Billion
Steel & Metalworking: $2.8 Billion
Industrial Infrastructure: $2.2 Billion
Total: Approx. $20 Billion
These figures are based on publicly announced projects, government approvals, and company disclosures over the last three months.
Implications for AMT Members
The current investment cycle in India aligns strongly with areas where AMT member companies are globally competitive, including CNC machining, automation, additive manufacturing, metrology and inspection, cutting tools, digital manufacturing, aerospace machining, semiconductor equipment, and EV and battery production technologies.
India continues to move toward higher-value manufacturing, which is increasing demand for advanced technology rather than low-cost equipment.
For AMT members, India remains one of the most important growth markets outside North America. Demand for advanced manufacturing solutions continues to rise across multiple sectors.
AMT’s Global Technology Center in India, together with ongoing industry outreach, is helping to position AMT and its members to participate in these opportunities through demonstrations, partnerships, and direct engagement with OEMs and tier suppliers.
For more information, please contact Arun Mahajan at AMahajan@AMTonline.org, and to learn how to take advantage of these opportunities, click here.
