INDIA’S MANUFACTURING TAKES CENTER STAGE

India’s Manufacturing industry is at a defining moment. Backed by strong policy push, booming domestic demand, and rising exports, the country is transitioning from being a cost-driven hub to a value-driven global player. Through the following round-up of industry veterans, a picture emerges depicting a highly positive trajectory—where the Indian manufacturing is not only scaling up its capacity but also earning global recognition for its precision, innovation, and excellence.

As India moves toward becoming a US$ 5 trillion economy, manufacturing is expected to contribute about US$ 1 trillion—raising its share of GDP from the current 16 percent to nearly 25 percent. This shift is being driven by surging demand in sectors such as Automotive, Aerospace, and MedTech, unlocking vast opportunities for the Machine Tool industry.

Recent economic performance indicators underscore this momentum. In July 2025, the manufacturing PMI rose to 59.1, a 16-month high, while the services PMI climbed to 60.5, its highest in 11 months. Even though industrial output growth moderated slightly (IIP 2.0 percent in Q1 FY26 from 4.0 percent in Q4 FY25), the indicators point to a resilient economy that is fueling both domestic demand and global competitiveness and continuing while creating fresh opportunities for manufacturing expansion.

Expanding Horizons

The backbone of modern manufacturing, the Machine Tool industry, reflects this transformation—recording healthy growth, diversifying beyond Automotive, and increasingly aligning with global supply chains.

According to the latest World Machine Tool Survey by Gardner Intelligence, India ranked 4^th globally in consumption and 9^th in production in 2024. In Q1 FY26 alone, production rose by 11 percent year-on-year to `2,615 crore (US$ 306M), imports surged 40 percent to `5,748 crore (US$ 672M), exports reported a growth of 108 percent, to `625 crore (US$ 73M), and overall consumption grew 26 percent to `7,738 crore (US$ 904M).

Amidst these positive developments, the industry is making inroads into a spectrum of industries, including Defence, Railways, Electronics, and Aerospace. Policy measures such as the Scheme for Enhancement of Competitiveness in the Capital Goods Sector (Phase II) are also driving indigenization and long-term self-reliance. Looking ahead, machine tool production and consumption are projected to rise another 10 percent in FY 2025–26, powered by growth in Electronics, Renewable Energy, Aerospace, and Automotive space. With innovation, customization, and solution-driven value creation, the Indian Machine Tool industry is poised to anchor our country’s manufacturing ambitions in the years ahead.

Indian Machine Tools in Spotlight

The growing relevance of Indian machine tools can be gauged by the rising number of companies representing the country at EMO Hannover 2025. More than 40 Indian firms—including several first-time exhibitors—are showcasing innovations across turning, milling, grinding, and automation.

Indian companies are driving innovation, delivering world-class quality, and rapidly expanding into international markets. Their strong presence at EMO Hannover underlines India’s emergence as a key force in the global machine tool industry, with a clear vision for long-term success. The event empowers them to stand shoulder-to-shoulder with the world’s best.

Advantage India

Highlighting reasons that make India an ideal partner for international companies looking to expand their footprint, Ravi Raghavan, Past President, Indian Machine Tool Manufacturers’ Association (IMTMA) and Managing Director, Bharat Fritz Werner (BFW) Ltd, notes that the country’s growing Manufacturing sector is increasingly aligned with global supply chains.

“Our strength is our people—a diverse mix of demography and a convergence of ideas—which helps us deliver unique solutions to customers, whether in processes, materials, or special-purpose machines,” he adds.

Further dissecting why India makes a compelling case for global firms, Mohini Kelkar, Vice-President, IMTMA, points to India’s vast skilled manpower, cost competitiveness rooted in technology investments, and strong domestic demand.

She underscores India’s strategic geographic location, making it an ideal export hub for Southeast Asia, the Middle East, and Africa. “India is steadily becoming an integral part of the global supply chain. Aerospace manufacturing, which was once concentrated in the West, is now shifting toward India as the country scales up in Precision Engineering. This shift is also visible in Automotive, Pharmaceuticals, and Electronics industries,” she observes.

“What truly sets us apart is our startup culture and spirit of innovation, which ensures that India not only scales in manufacturing but sustains it over the long term,” she adds.

A Platform for Collaboration

Recognizing this momentum, IMTMA, the German Engineering Federation (VDMA), the German Machine Tool Builders’ Association (VDW), are jointly hosting India Opportunities Day at EMO Hannover on September 24, 2025. The platform will showcase India’s strengths, facilitate dialogue between Indian manufacturers and their global counterparts, and underline India’s rising role in global manufacturing.

Through keynote addresses and panel discussions, the session will highlight avenues for collaboration and how the development of the Manufacturing industry can present opportunities to international businesses in the Indian context.

“India is already the sixth largest export destination for German machine tools,” says Rajesh Nath, Managing Director, VDMA India. “In the first quarter of 2025 alone, exports grew 9.2 percent.”

Jibak Dasgupta, Director General & CEO, IMTMA & BIEC, identifies India as an emerging manufacturing hub, attracting global machine tool manufacturers to set up operations in the country, supported by an enabling ecosystem from the central and state governments.

Dasgupta further outlines the growth trajectory of the Indian Machine Tool industry, identifying new growth avenues across industries beyond Automotive, such as Defence, Electronics, Aerospace, Railways, and many more, thus broadening the scope of opportunities in manufacturing. 

On the German front, Paul Kössl, Head of Business Development, United Machining Solutions, states, “We have always believed in the long-term potential of the Indian market.” Having been active in India for more than two decades, he views the upcoming session as a valuable platform to strengthen ties.

Kössl emphasizes that Indian manufacturers are increasingly focused not just on cost, but also on productivity, reliability, and sustainability. “Indo-German cooperation can play a decisive role by accelerating access to advanced technologies in automation, Industry 4.0, and green manufacturing,” he adds.

Voices from the Indian Machine Tool Industry

Renganathan Chellamraja, CEO & Managing Director, Chennai Metco Pvt Ltd, notes how global buyers now fathom India’s competence to deliver reliable, precision-engineered, and cost-effective products. The company has been participating in EMO Hannover for more than two decades and, has witnessed how the show has evolved over the years. “Today, European companies themselves are using Indian machines in their local plants. With cost advantages added, Indian machines are being taken seriously,” he notes.

TK Ramesh, Managing Director, Ace Designers Ltd (ADL), emphasizes that India’s presence at global shows like EMO reflects steady progress in specifications, technology, and exports. “With global majors setting up bases in India and manufacturing shifting eastward, the ecosystem is  getting stronger—combining local innovation with global integration.”

Reflecting on the company’s four decades of participation in EMO Hannover, Ramesh shares, “For us, EMO is not just an exhibition, it’s a legacy. We’re showcasing solutions across milling, grinding, and turning—built on fundamentals of reliability, productivity, and cost-effectiveness. The exhibition offers us the opportunity to connect with the right partners and strengthen collaborations globally.”

For ADL, India’s manufacturing growth story is inseparable from its own journey of scale and innovation. “Today, manufacturing contributes around 16–17 percent to India’s GDP, and is expected to touch 25 percent by 2030. Hence, as an industry, we will need to double or even triple our capabilities,” explains Muralidhara Rao, Director, Machining Centre Division, ADL. He further added, “We focus on cost optimization, high reliability, and productivity, which will remain our key drivers in Europe. EMO Hannover is an opportunity for us to showcase our strengths and reaffirm our commitment to serving customers in this market.”

A Moment of Convergence

India Opportunities Day, set to take place concurrently with EMO Hannover 2025, is designed as a convergence point where Indian and German businesses can evaluate real opportunities for collaboration—whether in technology transfer, market expansion, or joint ventures.

For Indian companies, the session offers a global platform to be acknowledged, strengthening the country’s credentials as a competitive, future-ready manufacturing hub. For German and other international firms, it poses as an opportunity to partner with a country that is set to become the world’s third-largest economy while contributing to global supply chain resilience.

Poonam Pednekar Chief Copy Editor Magic Wand Media Inc poonam.pednekar@magicwandmedia.in

NITYASREE KUMARASWAMY Correspondent Magic Wand Media nityasree@magicwandmedia.in

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