India: The Most Favoured Manufacturing Destination by 2047: By Mr. Sunil Rallan

India stands at a pivotal moment in its economic journey. For decades, the nation’s growth narrative has leaned on a combination of low labor costs, tariff advantages, Production Linked Incentive (PLI) schemes, and the global shift represented by the “China + One” strategy. While these elements provided momentum, they represent transitional advantages rather than sustainable foundations for long-term growth. To realize the vision of Viksit Bharat—a developed India—there is a need to reimagine the country’s competitive positioning and build upon more enduring pillars of economic strength.

The Current Growth Narrative

India’s present economic story has been heavily shaped by external factors and short-term competitive levers. The “China + One” policy has enabled India to attract companies seeking diversification away from China. Similarly, tariff advantages in global trade agreements have given exporters a marginal edge in select markets. Low labor costs, though attractive to certain industries, risk locking India into a low-value manufacturing trap unless complemented by value addition. Government incentives such as PLI schemes have also spurred investment in sectors like electronics, semiconductors, and textiles.While these strategies have been effective in boosting investment and exports, they remain inherently fragile. Low labor cost as a positioning factor is not sustainable as wages naturally rise with development. Tariff arbitrage can be eroded by shifting geopolitics and renegotiated trade deals. PLI incentives cannot be relied upon indefinitely; they are catalysts, not structural strengths. For Viksit Bharat, India must pivot from dependence on transient advantages toward systemic, high-quality enablers.

The Dream of Viksit Bharat

A truly developed India cannot simply replicate the low-cost manufacturing story of the past. It must aspire to be a top-class destination for global enterprises, investors, and innovators.

This requires a multi-dimensional strategy that emphasizes competitiveness, sustainability, and inclusivity. The pillars of this vision are clear: ease of doing business, policy stability, workforce quality, market depth, infrastructure, and integrated supply chains.

Ease of Doing Business (EODB)

India has made significant progress in simplifying regulations and digitizing approvals, but ranking among the highest globally in ease of doing business remains an unfinished task. The future requires not only reducing bureaucratic touchpoints but also building seamless, predictable, and transparent processes. A world-class EODB ranking signals to investors that India is not merely an emerging economy but a destination where operations can be scaled without friction.

Stable and Predictable Policies

One of the most significant enablers of long-term growth is policy stability. Investors look beyond tax incentives; they seek assurance that rules will not change midway through their commitments. Consistency in trade, taxation, and investment policies builds confidence and encourages multi-decade investments in sectors like manufacturing, energy, and digital infrastructure. A stable regulatory framework will transform India into a reliable partner in global value chains.

Skilled Workforce

India’s demographic dividend is often celebrated, but numbers alone are not enough. The future of manufacturing, services, and innovation depends on a workforce that is not just abundant but also highly skilled. This requires sustained investment in vocational training, reskilling, and integration of industry-driven curricula. By nurturing talent pools aligned with emerging sectors—AI, renewable energy, robotics, biotech—India can move from being a supplier of inexpensive labor to being a supplier of cutting-edge skills.

Large Domestic Market

India’s vast population is not just a source of labor but also a market of immense potential. With rising middle-class consumption, the domestic market can serve as a stabilizing anchor for global companies.

For multinational corporations, the ability to produce in India and simultaneously serve a growing local customer base is a compelling advantage. Harnessing this potential requires building purchasing power, strengthening consumer confidence, and ensuring equitable growth across regions.

Infrastructure Development

No economy can achieve developed status without robust infrastructure. Logistics, power, digital connectivity, and transportation networks determine the competitiveness of industries. India’s recent strides in roadways, renewable energy, and ports are encouraging, but more needs to be done to achieve world-class benchmarks. Smart cities, efficient freight corridors, and resilient energy systems must become central to the Viksit Bharat agenda.

Integrated Supply Chains

The disruptions of the pandemic highlighted the importance of resilient supply chains. For India, building competitive supply chains means creating clusters of manufacturing excellence, integrating logistics hubs, and ensuring reliable backward and forward linkages. This not only reduces costs but also positions India as a dependable alternative in global production networks.

The Strategic Shift

Transitioning from the current growth story to the dream of Viksit Bharat involves a mindset shift—from reliance on subsidies and arbitrage to long-term institutional competitiveness. It means branding India not as a destination of low cost but as one of high efficiency, high trust, and high quality.

This repositioning will allow India to capture a larger share of high-value manufacturing, advanced services, and innovation-led growth.

Conclusion

The pathway to Viksit Bharat requires bold reforms and visionary execution. India must preserve the advantages of today while deliberately constructing the foundations of tomorrow. By achieving top global rankings in ease of doing business, ensuring stable policy frameworks, nurturing a highly skilled workforce, leveraging its vast domestic market, investing in modern infrastructure, and embedding resilient supply chains, India can evolve into a true global powerhouse.In this transformation lies the realization of the dream: an India not just competing on costs, but leading on capabilities; not merely following the world’s industrial trends, but shaping them; not only aspiring to development, but achieving the stature of a fully developed, globally admired economy.