ASSOCHAM Report Names India Global Manufacturing Hub

The Associated Chambers of Commerce and Industry of India released a report on July 7 identifying India as a primary beneficiary of global supply chain realignments. The analysis finds that India is emerging as a key manufacturing hub as international companies adopt nearshoring, friendshoring, and China+1 strategies to increase supply chain resilience.

India's average manufacturing growth increased from 3.44% during the 2016-19 period to 4.15% between 2022 and 2025. This performance places India nearly two percentage points above the global benchmark, aligning it with other high-performing economies including the United States, France, Germany, Italy, and the United Kingdom.

The report attributes this growth to strong domestic demand and government initiatives, specifically the Production Linked Incentive scheme, industrial corridors, and PM Gati Shakti. Nirmal K. Minda, president of the industry body, stated that this manufacturing performance reflects the impact of sustained reforms and growing investor confidence.