Global Supply Chain Shift Boosting India’s Manufacturing Prospects: Assocham Report

New Delhi, Jul 10 (KNN) India is strengthening its position as a key global manufacturing destination and is emerging as a major beneficiary of ongoing shifts in international supply chains, according to a study by Associated Chambers of Commerce and Industry of India (Assocham).

The report noted that while China continues to be the world’s largest manufacturing economy, global companies are increasingly diversifying production across multiple countries. Strategies such as China+1, nearshoring and friendshoring are being adopted to improve supply chain resilience and reduce dependence on a single geography.

“India has emerged as one of the emerging manufacturing leaders by significantly improving its manufacturing performance relative to the global average in the post-pandemic period," PTI reported, citing the report.

Improved Growth Performance

According to the study, India’s manufacturing sector has shown notable improvement in the post-pandemic period. Average manufacturing growth increased from 3.44 per cent during 2016–2019 to 4.15 per cent between 2022 and 2025. This shift has moved India from below the global average to nearly two percentage points above the world benchmark.

The report attributed this improvement to sustained economic reforms and rising investor confidence in the country’s industrial sector.

Opportunities for Expansion

The study said, "India is well-positioned to consolidate its manufacturing leadership by accelerating logistics and industrial infrastructure, strengthening domestic supplier ecosystems and leveraging Free Trade Agreements to integrate more deeply with global value chains."

(KNN Bureau)