6 Growing Manufacturing Industries in India 2023

India is a country with a huge population and a growing economy, which makes it an attractive market for manufacturing business. However, it can be challenging to start a manufacturing company in India due to the country's complex regulatory structure.

Despite these challenges, there are many manufacturing business opportunities in India. With the country’s large growing population that is increasingly becoming urban and middle class is driving demand for a variety of manufactured goods, from food and beverages to automobiles and consumer electronics.

There are also a number of government initiatives that are making India an attractive spot for manufacturing businesses. Initiatives like, “Make in India” campaign that is designed to attract foreign investment in the manufacturing sector, and the “India Manufacturing Summit”, which is a forum for promoting the growth of the manufacturing sector in India.

If you are considering starting / investing in manufacturing sector, below are the top 6 investment opportunities you can consider:

Top 6 Growing Manufacturing Industries to Invest in India

1. Food and Beverages manufacturing

The food and beverage manufacturing industry is a great sector for entrepreneurs who are looking for business opportunities with high returns. The sector provides employment to over 13 million people in India and is one of the largest employers in the country. The industry is also very competitive and provides ample opportunities for entrepreneurs to start and grow their businesses and investing in the food & beverages industry can help you to enhance your investment portfolio.

2. Automobile manufacturing

This industry in India accounts for 7.1% of the country's GDP and employs over 29 million people. India is also the world's second-largest market for vehicles, with sales of more than 4 million vehicles in FY 2016-17. The automotive industry in India has an annual production of more than 23 million vehicles in FY 2016-17, and is expected to grow to $145 billion by 2025.?

In the automotive sector, there are several reasons to invest:

• There is a large and growing market for vehicles in India.
• In terms of economic growth, the automotive industry plays a key role.
• The industry is expected to continue to grow at a strong pace in the future.
• A supportive government is in place for the automotive industry.
• By adding automobile businesses in your investment portfolio can help you to get long term returns.

Considering the above analysis, we can conclude that the automobile industry is experiencing rapid growth, making it a great investment opportunity for potential investors.

3. Consumer Electronics manufacturing

There are many reasons why investing in consumer electronics manufacturing is a good idea. India is a rapidly growing market for consumer electronics, and there is a strong demand for high-quality, affordable products. Additionally, the Indian government is supportive of the electronics manufacturing industry and has put in place a number of incentives to encourage investment.

Many other reasons to consider investing in consumer electronics manufacturing in India are:

• The cost of setting up a manufacturing facility in India is relatively low.
• India offers a number of tax and duty benefits for electronics manufacturers.
• India has a large domestic market for consumer electronics.
• There is a large pool of skilled labor in India.

4. Pharmaceuticals manufacturing

Investing in Pharmaceutical Manufacturing - Why NOW is the Time?

India's pharmaceutical industry is growing rapidly with a CAGR of 9.43% between FY 2015 and 2020. The country is expected to become the world's third-largest pharmaceutical market by 2023.

There are several factors driving this growth. India has a large population, and a growing middle class with more disposable income. The government is also investing in healthcare, and has launched initiatives such as Ayushman Bharat to increase access to healthcare.

The country is also home to a large number of generic manufacturers, which has made medicines more affordable. India is expected to be the world's largest producer of generic drugs by 2023.

Investing in the pharmaceutical businesses or industry in India is a good long-term proposition. The sector is expected to continue growing at a rapid pace, driven by factors such as population growth, government initiatives, and the increasing affordability of medicines.

5. Textiles manufacturing

The textile industry in India is one of the oldest and most important industries in the country. As per IBEF report the industry contributes to approximately 14% of the country's industrial production and employs over 45 million people directly and indirectly. The textile industry is a critical part of the Indian economy and is an important driver of economic growth.

The textile industry in India has been growing at a rapid pace in recent years and is expected to continue to grow at a strong rate in the coming years. The industry is expected to benefit from the strong economic growth in the country as well as from the government's initiatives to promote the sector.

The government has been taking various measures to promote the textile industry in India and to make it more competitive. These measures include providing financial assistance to the industry, increasing export incentives, and establishing special economic zones for the sector etc.

India has always had a high demand in apparels and the growth of textile industry is going at a rapid pace. By investing in the textile sector , you can leverage long term financial growth.

6. Steel manufacturing

The steel industry in India has been growing rapidly in recent years, thanks to the country's large population and growing economy. India is now the world's second-largest producer of steel, behind only China. With the National Steel Policy, which was released in 2017, India is aiming to reach steel production capacity of 300 MT by 2030, so the steel industry is poised for even more growth.

Investing in the steel industry in India is a good idea for those looking to get high return on long term investment.

Apart from…

There are several other sub-sectors within the manufacturing industry that you can look out for in your investment planning which may help you to build a strong investment portfolio. Some are like

Chemicals manufacturing, Glass and ceramic manufacturing, Machinery manufacturing, Leather and footwear manufacturing etc..,

Final Thoughts

Manufacturing industry in India has a chance to increase its competitiveness and become the preferred provider not only to its large consumer class but also to global markets. Bringing together manufacturers by removing roadblocks in the chosen value chains, coupled with government support, holds great promise for increasing productivity, securing superior know-how, and generating greater returns on investment.

For any questions, write to us on [email protected]

Written By:- Sunil Solanki is an experienced digital marketing professional with a management background. Utilising market trends, assist businesses in strengthening relationships with their target audiences through growth-oriented digital solutions.

Edited By:- As a Co-founder of IndiaBizForSale & IBGrid, Haripriya B. Bhagat is committed to help SMEs in India to find the right exit at the right time for a right price. Her proficiency, intellect and experiences are invaluable in her role at www.indiabizforsale.com. Prior to assuming the company's leadership, she has spent more than 10 years in the UK and brings over 8 years of Finance and Accounting experience from diverse industry segments and working for companies like Nestor Healthcare, Halcrow Group, SITA UK - Waste & Environmental Services with varied roles.