India’s manufacturing PMI continues to climb after a 2021 end-of-year performance registering 55.5 for the month of December.
An Economic Times survey involving 56 CEOs and business leaders from across India’s manufacturing, services, and infrastructure sectors, noted that companies are in an investment and capex boom. About 93% of the respondents are planning on major investments citing emerging business opportunities, government incentives across several manufacturing sectors, and the availability of low-interest financing.
Sectors that hold potential for 2022 and beyond:
- Defense Manufacturing – the government has set a $25 billion target for defense manufacturing growth by 2025. It is presently a $12 billion industry.
- Electronic Hardware Manufacturing – The electronic systems design and manufacturing market has been growing at a CAGR of 16% since 2019 and is likely to reach $220 billion by the end of 2025 especially because of strong demand, supportive government policies, and an increased focus on component making within the country.
- Renewable Energy. The target is to enhance the capacity to 450 GW by 2030 – with 280 GW generated through solar power. Currently, there is a total of 105 GW of installed capacity in this segment.
- Off-Road Equipment. With the government’s focus on extensive road building and other infrastructure-related investments, this sector is projected to grow from $5 billion to $11 billion by 2025.
- Auto-Component Industry. The industry witnessed a 5% reduction in sales from 2020 to 2021 due to the supply chain-induced slowdown of auto production, as well as its adaption toward the EV explosion. Nevertheless, the industry is projected to grow three times from its present $45 billion by the end of 2026.
- Electronic Chip Manufacturing. In December, the government approved a $10 billion incentive plan to establish chip and display manufacturing in the country. As of now, there are around 20 manufacturing companies planning to invest and use these incentives.
Some Indian companies that are moving ahead with new investments and plans are:
Arcelor Mittal Nippon Steel India Ltd
Tata Motors
Simple Energy
Hyundai India
Reliance Industries
Mahindra Electric
EeVe
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Last updated: December 26th, 2025
