India's Economic Surge: A global game changer in manufacturing and technology

In the unfolding narrative of the 21st century, India stands at a pivotal juncture. As the nation steadily advances towards the vision of Viksit Bharat, a developed nation by 2047, its economic scale, demographic vitality, and strategic policymaking are not merely shaping its own prospects but exerting a growing influence on global economic trajectories.

Once considered a peripheral participant in international commerce, India has now emerged as the fastest-growing major economy, growing at 7.4 per cent which carries discernible implications for global supply chains, manufacturing and design spends, cross-border investment flows, and aggregate demand dynamics worldwide.

Expanding economic influence

At the heart of this influence is India’s sheer economic magnitude. In recent years, the country’s growth has consistently outpaced many peers, and forecasts anticipate sustained expansion that positions India among the most consequential contributors to global GDP growth. This momentum is not an accident of circumstance but the product of deliberate policy choices that have favoured structural reforms in taxation, trade facilitation, health and capital investment in infrastructure and logistics.

The impact of these reforms is visible across the economy, where sectors ranging from manufacturing to high-technology services have attracted significant capital and talent, both domestic and international.

Supply chain momentum

India’s role in global supply chains has expanded markedly. Historically, the country was more of a consumption market than a production powerhouse.

Today, it is rapidly becoming an indispensable node in critical value chains, particularly in information technology, pharmaceuticals, and automotive components. Policy interventions such as production-linked incentive schemes, customs modernisation, and logistical integration have enhanced competitiveness, enabling Indian enterprises to integrate more deeply into regional and global value networks. These developments have not only bolstered export performance but have also encouraged multinational firms to reconsider their global sourcing strategies, with India increasingly seen as both a reliable production base and a burgeoning innovation hub.

Simultaneously, global investment flows are repositioning in response to India’s economic resurgence. According to PwC’s 28th Annual Global CEO Survey: India Perspective, nearly 87 per cent of Indian CEOs expressed confidence in the nation’s economic growth over the next 12 months, significantly higher than the global average of 57 per cent and underscoring the robust optimism that anchors corporate strategy and investment planning.

Investment confidence builds

Moreover, this optimism is reflected in the broader investment landscape: India has risen to the top five destinations for global capital deployment, joining advanced economies such as the US, the UK, Germany, and China on the list of preferred investment locations. Such positioning is neither trivial nor transitory; it points to a structural re-evaluation by global investors who are increasingly allocating capital to Indian enterprises, driven by sustained domestic demand, reform stability, and the promise of future returns.

Trade performance too has seen considerable strengthening. India’s trade networks now span diverse geographies, with preferential trade agreements and strategic partnerships enhancing access to markets across Asia, Africa, Europe, and the Americas. The diversification of trade ties through EFTAs has lessened reliance on any single western market and demonstrated adaptability in an era marked by geopolitical uncertainty. With the Indo-Pacific emerging as a central theatre of economic competition, India’s participation in regional forums and supply chain corridors has contributed to a rebalancing of trade flows that favour greater inclusivity and resilience.

Concurrently, India’s manufacturing base has been expanding in scale and sophistication, supported by sustained infrastructure and digital investments.

Manufacturing growth

Strategic initiatives aimed at elevating industrial capacity — particularly in semiconductors, electric vehicles, renewable energy equipment, and capital goods — are beginning to yield results. The expansion of industrial clusters, the rise of export-oriented units, and the strengthening of logistics infrastructure have collectively enhanced the country’s ability to meet both domestic and international demand. While challenges remain, including the need for further skill development and regulatory coherence across states, the direction of progress is unmistakable: India is actively fortifying its productive capabilities to better integrate with global supply chains.

Parallel to manufacturing, the services and technology sectors continue to propel India’s influence on the world stage. India’s technology ecosystem and AI investments, characterised by a vibrant start-up culture, digital public infrastructure and deep software expertise, along with a talented STEM workforce, has become a crucible of global innovation. Exports of technology services, engineering solutions, and digital platforms have grown at a rate that rivals many high-income economies.

Indian firms, particularly in information technology-enabled services and fintech, are now indispensable partners for multinational corporations seeking to leverage digital transformation, cybersecurity, artificial intelligence, and cloud computing. This intellectual footprint extends beyond commerce, shaping global innovation ecosystems and contributing to standards, protocols, and capabilities that underpin the digital economy.

A voice in governance

Importantly, India’s policy choices and strategic trade partnerships reflect a nuanced understanding of its global responsibilities and aspirations. The nation has pursued a foreign policy that balances economic openness with sovereign interests, actively engaging in bilateral and multilateral dialogues to promote stability, climate action, and equitable development. Its leadership role in forums such as the G20, as well as in Global South cooperation initiatives, attests to an agenda that is both aspirational and pragmatic. India’s participation in development partnerships with nations across Africa, Latin America, and Southeast Asia extends beyond traditional trade, encompassing capacity building, infrastructure financing, and technology collaboration.

The influence of India in global governance is likewise becoming more pronounced. As geopolitical fault lines evolve, there is a collective recognition that emerging large economies must play a greater role in shaping international norms and institutions that govern trade, finance, and sustainable development. India’s voice — informed by a large democratic polity and a rapidly modernising economy — brings a distinctive perspective that emphasises inclusivity, economic opportunity, and shared progress. Through its engagement in global forums, India is advocating for frameworks that enable equitable access to technology, resilient supply chains, and sustainable infrastructure financing.

At this juncture, the world’s economic architecture is being reshaped by a confluence of forces — technological disruption, demographic shifts, and geopolitical disruptions. Within this context, India’s growth trajectory, underpinned by profound domestic reforms and an outward-looking orientation, offers a stabilising influence. Its interactions with global partners are rooted not only in trade and investment but also in shared aspirations for sustainable prosperity. As India continues to forge deeper connections with global markets and institutions, its influence will be measured not merely in statistics, but in the enduring partnerships it cultivates and the confidence it inspires.

India’s ascent on the global economic stage is a testament to deliberate policy action, entrepreneurial dynamism, and resilient social and economic foundations. As the republic continues to contribute to global growth, societal well-being, and international collaboration, the momentum it has built will be central to shaping a world that is more interconnected, more equitable, and more reflective of diverse voices in the global economic narrative.