TECHNOLOGY AND INNOVATION TO DRIVE GROWTH

India’s manufacturing sector is at a pivotal stage, where growth is increasingly defined by capability, innovation, and technological depth. Strengthening the machine tool industry and reducing import dependence will be key to sustaining long-term competitiveness.

India, one of the fastest-growing major economies in the world, is projected to grow by around 7.4 percent in real terms in FY 2025–26, making it a bright spot for investment. Currently ranked as the fifth-largest economy globally and aspiring to become a US$ 5 trillion economy by 2027, India must focus on exports for sustained long-term growth.

Achieving this is increasingly about capability, not just scale. In the current geopolitical landscape, with ongoing tensions in the Gulf region and looming supply disruptions affecting goods and services, we need to brace ourselves for tough times.

Machine Tools at the Core of Industrial Growth

At the center of this conversation is the Machine Tool industry, which forms the backbone of manufacturing and is a key driver of the Capital Goods sector. Major industries—from Automotive and Aerospace to Electronics, Energy, Railways, and Defence—depend heavily on machine tools.

Building self-reliance in CNC controls, ball screws, linear motion systems, laser technologies, and 5-axis and multi-axis machines is vital for manufacturing growth. Strategic mergers and acquisitions can help accelerate innovation and product development. Engaging domain experts can enable knowledge exchange and exposure to global best practices, a move that may help reduce imports.

India aims to become a ‘product nation’ with a focus on high-quality, indigenous manufacturing, transitioning from a service-driven economy to one that builds deep-tech capabilities. However, the Machine Tool industry continues to rely heavily on imports, particularly for core technologies, advanced high-precision machinery, and critical subsystems. This dependence poses a long-term strategic risk and can lead to supply disruptions.

India’s growth trajectory can become more robust when collective action replaces fragmented efforts. Technology development can be driven by shared learning, coordinated investments, and ecosystem-wide collaboration.

IMTMA’s Technology & Innovation Forum

Recognizing this need, the Indian Machine Tool Manufacturers’ Association (IMTMA) has launched the Technology & Innovation Forum as a collaborative initiative to promote structured engagement on technology priorities and bring together stakeholders to accelerate innovation. This extends beyond product development to include manufacturing processes, supply chains, financial models, logistics, and organizational practices.

The Forum aims to serve as a structured platform for systematically identifying and prioritizing emerging and future-shaping technologies that will define the next phase of manufacturing competitiveness. Through focused deliberations, it will map critical technology gaps, assess industry readiness, and develop time-bound action plans aligned with national manufacturing objectives.

Towards a Culture of Innovation

Building such a culture requires participation at every level—from shop-floor teams to senior leadership—supported by strong leadership, openness to experimentation, and the empowerment to contribute ideas. Organizations that remain receptive to external knowledge and adapt it to their context are often able to establish themselves more quickly.

Strengthening the SME Ecosystem

Integrating small and medium enterprises (SMEs) into the innovation value chain is equally critical, as they form the backbone of the supplier ecosystem and contribute significantly to industrial development. A collaborative approach between industry and academia, through research programs and technical exchanges, will help address end-user needs with speed, agility, and a shared vision.

Self-funded and government-supported research and development will further drive product innovation, enabling SMEs to grow and compete effectively. In addition, the Forum will actively engage with government bodies, financial institutions, multilateral agencies, and other funding organizations to facilitate access to financing for technology development initiatives among IMTMA members.

From Dependence to Innovation

Moving forward, India must shift from import dependence to innovation. When innovation becomes ingrained in an organization’s DNA, it fosters meaningful change and creates long-term value.

For India, the way ahead involves blending growth with capability, developing homegrown products, enhancing collaboration across the ecosystem, and prioritizing strategic self-reliance. This approach could help the Machine Tool industry achieve its goal of developing deep-tech products for both domestic and global markets.

Source: IMTMA