India’s manufacturing PMI surged to 59.2 in October, up from 57.7 in September, indicating one of the strongest expansions in recent years. The growth was primarily driven by robust domestic demand, relief measures for the country’s Goods and Services Tax, productivity gains, technology investments, and easing input costs. New orders continued to grow sharply, while job creation remained steady for the 20th consecutive month. Business optimism remained high despite softer export trends, with the composite PMI (encompassing manufacturing and services) standing at 60.4, reflecting broad-based economic strength.
In the defense sector, India and the United States formalized a 10-year strategic defense framework, establishing a long-term roadmap for cooperation in military manufacturing, technology sharing, and operational interoperability initiatives. The framework encompasses joint production, direct equipment sales, and collaboration in emerging defense technologies, including munitions, missiles, armed drones, surveillance aircraft, anti-submarine platforms, helicopters, fighting vehicles, jet engines, and underwater drones. Under this initiative, India’s Larsen & Toubro has signed a strategic agreement with California-based General Atomics Aeronautical Systems Inc. to produce medium-altitude, long-endurance remotely piloted aircraft systems in India, further strengthening the country’s defense manufacturing capabilities.
A few recently announced projects and investment news items are listed below for reference:
Brazilian aerospace firm Embraer signed a strategic cooperation agreement with the Mahindra Group to establish India as a hub for the C-390 Millennium military transport aircraft for the Indian air force. The collaboration encompasses joint marketing, industrialization, local manufacturing and assembly facilities, supply chain integration, and MRO activities.
Rolls-Royce has reached an agreement with Bharat Forge Ltd. to manufacture and supply fan blades for its Pearl 700 and Pearl 10X engines. This partnership will strengthen Bharat Forge’s aerospace manufacturing capabilities, particularly in high-precision machining and advanced metallurgy.
Tata Advanced Systems is setting up India’s first private-sector helicopter final assembly line in Vemagal, Karnataka, to produce Airbus H125 helicopters. The facility will manufacture both civilian and military variants for both domestic deployment and export, reinforcing India’s defense and civil aviation self-reliance.
Hindustan Aeronautics Ltd. has signed an MOU with United Aircraft Corp., a Russian public joint-stock company, for the production of the SJ-100 civil commuter aircraft in India. The SJ-100 is a twin-engine narrow-body jet already in commercial service and operates across 16 airlines worldwide, with over 200 units in use.
Ford Motor Co. is restarting manufacturing operations in India after its 2021 exit, with an investment of approximately $366 million in its Chennai facility. The plant will serve as Ford’s first powertrain manufacturing unit outside the United States, supporting the company’s global manufacturing network. It will operate as a 100% export-oriented facility.
Hyundai Motor Co. has unveiled plans to invest approximately $5.4 billion in India over the next five years, aiming to expand manufacturing capacity, strengthen research and development, and introduce 26 new vehicle models, including electric and hybrid variants. The move underscores Hyundai’s long-term commitment to India’s growing automotive market and the country’s transition to clean mobility.
JK Tyre & Industries is planning an investment of around $600 million over the next five to six years to expand production capacity across its car and truck tire segments.
Haveus Aerotech, a leading MRO service provider, has ventured into defense manufacturing as a subcontractor for the assembly and testing, including non-destructive testing, of aerospace components. Headquartered in Gurugram (formerly Gurgaon), the company currently operates in Delhi and Bengaluru, with plans to expand to Kolkata and Mumbai, supporting India’s growing aerospace and defense ecosystem.
Italian precision toolmaker Silmax is set to launch its first manufacturing unit in India in November 2025 to meet the growing demand for precision milling and drilling tools. The move strengthens India’s position as a key destination for high-precision tooling and advanced manufacturing.
Japanese automakers, including Toyota, Honda, and Suzuki, are redirecting over $11 billion in investments to India for the manufacturing of hybrid and electric vehicles, local sourcing, and exports. This shift positions India as Japan’s new auto hub, driven by China’s economic slowdown, geopolitical uncertainties, and India’s incentives for clean-energy vehicles.
India’s solar module manufacturing capacity is on track to surpass 125 GW in 2025, propelled by Production Linked Incentive schemes and robust domestic demand, underscoring the country’s growing dominance in the renewable energy sector.
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