With the New Economic Policy of 1991, the Government of India moved towards a strategy to introduce a global economy. Manufacturing trends in India mainly go towards making a connection that promotes three aspects: Liberalisation, Privatisation, and Globalisation (LPG).

Such an initiative in 1991 promoted a more open and free economy that helped in the establishment of trade and commerce. Therefore, with such an open economy, goods are moving to and from India, and this helps to build India's economic resilience through trade and commerce.

Let us see some key trends that highlight India’s Goods Landscapes and its improvement.

Key Trends That are Shaping the Manufacturing Landscape

The evolution of the Indian landscape has characterised some emerging trends that highlight significant growth. With rise in the industrial sector, goods and their movements, as well as production, have a rapid boom. Some key trends in the Manufacturing landscape of India are:

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‍1. E-commerce Boom

In recent years, India has seen a considerable improvement in their ‘digitization efforts’ through the usage of smartphones. India’s digital sector is expected to reach USD 1 trillion by 2030. With such potent digitization, Indians are aware of types of goods available and place their demands for obtaining them.

Additionally, Report shows that India is becoming the third-largest consumer market, with retail market size expected to reach USD 325 billion by 2030. Most of the e-commerce movement of goods is present in tier 2 and 3 cities in FY 2023.

The increasing demand for goods has attracted significant investments in India from various companies. Additionally, delivery service providers have achieved remarkable growth, reaching unicorn status with valuations in the billions, reflecting the booming e-commerce and logistics sectors in the country.

This promotes a new Manufacturing trend in India that focuses on connectivity and movement of goods throughout the country.

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‍2. Government of India (GoI) Initiatives like Make in India (2014)

The economic growth rate of India continues to be in a 7.5% margin, the fastest in the world among subdued economic conditions.

This accelerates trends of goods movement in the country as the costs of production and shipping costs externally reduce. We can say that it is one of the major manufacturing trends in India that specifically promotes local development.

To help the manufacturers obtain their clearances quickly, GoI has effectively integrated 14 services into one e-Biz portal. Such moves only ensure to provide an enabling environment for start-ups or other firms.

As these business hubs make products, their demands will amplify movement of goods both internally and externally. This shows an increasing trend of movement of goods throughout the country and globally.

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3. Production linked Incentive Scheme 2021

The government has allocated approx USD 23.73 billion (INR 1.97 lakh crores) for the Production Linked Incentive (PLI) Scheme, aiming to boost production and meet the growing demand in India.

The scheme already provided an impetus of an 18% boost to domestic automobile products manufacturers and several other industries. As the production from these firms increases, the domestic demand is catered to, and remnants can be exported outside.

This is exactly the reason that India opted for liberalisation and globalisation in 1991. Moreover, this initiative is pivotal in reducing domestic imports to cater to demands and lost money in the process.

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4. Supply Chain Strengthening

Strengthening supply chains helps industries receive the key substances for their manufacturing. Advancements in blockchain and AI are bolstering supply chain resilience in vital sectors like pharmaceuticals and electronics.

These technologies ensure transparency, traceability, and efficiency, mitigating risks during disruptions. Blockchain secures data integrity, while AI optimizes logistics, inventory management, and forecasting, ensuring uninterrupted supply and operational continuity.

Today, Indian industries are rapidly understanding the importance of data systems, and they are readily moving towards Automation. Effective usage of blockchain technology is also a great feature that Indian industries are using to remove bottlenecks.

In May 2024, Indian and Taiwanese manufacturers collaborated with a USD 15 billion subsidy to initiate semiconductor fabrication in India, marking a significant step toward strengthening the country's tech manufacturing capabilities.

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The move targets both the local demands of India, and global supply chain resilience at the same time. With such Manufacturing trends in India, the supply chain moves rapidly towards favourable growth.

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5. Using Automation in the Manufacturing Process

Automation facilitates transforming the manufacturing sector by enhancing productivity and reducing operational costs. Industrial engineering consulting firms in India affirm that adoption of AI, IoT, and robotics to streamline growth.

A study suggests that AI could contribute up to USD (450 - 500) billion to India’s GDP by 2025. About 45% of this value could come from key sectors like consumer goods, retail, agriculture, banking, and insurance. AI and automation enhance production efficiency, boost output, and ensure consistent quality standards across industries.

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6. Focus on Sustainability

Sustainability is becoming a key focus for a steady movement of goods in India. Nowadays, due to the mass availability of information, consumers are becoming climate-conscious. Thus, the desire as well as the demand for environmentally friendly items is increasing positively every day.

In this scenario, if goods fail to meet expected standards, they will struggle to attract buyers. This is reinforced by the announcement of the Ecomark Scheme, which encourages the production of environmentally friendly products in India, ensuring better quality and appeal to consumers.

Under this scheme, the Indian government supported products that followed certain environmentally friendly guidelines. The aim is to make sustainability a manufacturing trend in India that can be viable for our planet and ourselves.

Impact of the Trends in Manufacturing Goods Landscape

Now let us briefly analyse the impacts of Manufacturing trends in India among various stakeholders:

● Manufacturers: The adoption of AI and advanced systems helps them increase productivity. However, with the assistance of government schemes and incentives, the costs of production are also reduced.

● Distributors: Strengthening supply chain networks and the e-commerce boom provide increased opportunities. They can lucratively monetize personalised products and cater to the preferences of consumers.

● Consumers: Consumers benefit as they get access to a lot of quality products, which at times cost less due to incentives in the upward processes.

Future of India: Context to Goods Landscape

Manufacturing trends in India are progressing at a rapid pace towards effective goods movement. The key stakeholders already know what kind of product they want and utilise the government-backed support to reach there.

Additionally, with top industrial engineering consulting firms in India like Tecnova, even a new business owner or entrepreneur gets enough information to lucratively use the opportunities provided by the Indian government.