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Opinion | Manufacturing In India: Not Declining, Just Late To Scale

10 11
previous day

Recent remarks by Congress leader Rahul Gandhi, made during a visit to a German automotive manufacturing facility, have once again placed India’s manufacturing sector at the centre of political controversy. By suggesting that Indian manufacturing is “declining", particularly while standing within one of Europe’s most advanced industrial ecosystems, the comments warrant closer examination, not as a matter of partisan disagreement, but as a matter of factual accuracy.

Statements about a country’s economic capacity, when made on foreign soil, carry consequences beyond domestic politics. They influence investor sentiment, shape international perceptions, and affect how India’s growth trajectory is understood globally. It is therefore essential to assess whether the claim of manufacturing decline aligns with available evidence.

The data suggest it does not.

One of the clearest indicators comes from the automotive sector, which has long been regarded as a bellwether for manufacturing health. According to the Society of Indian Automobile Manufacturers (SIAM), India exported over 5 million vehicles in FY2023–24, marking a sharp increase from previous years and a year-on-year growth rate of roughly 20 per cent. Passenger vehicles, two-wheelers, and commercial vehicles have all contributed to this expansion, positioning India among the world’s largest automobile exporters (SIAM, Export Data, 2024).

Complementing this is the strong performance of the auto-components industry. Data from the Ministry of Commerce and Industry show that India’s auto-component exports........

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