Cultivate the culture of manufacturing in India — high time

Why do companies like Apple choose China for manufacturing?

When it comes to global manufacturing giants like Apple, their choice of China is often questioned. The answer is straightforward: skill and quality. What is less understood is how China became the manufacturing hub of the world. It wasn’t an overnight transformation — it was the result of decades of consistent effort, strategic policy and a relentless focus on capability building.

India, with its vast potential, often wonders why it hasn’t reached a similar status. Let’s look at the underlying reasons and what it would take to shift the trajectory.

India: a consumer nation struggling to produce

For years, India has been perceived as a consumer-driven economy rather than a producer. Global companies see India as a lucrative market for sales, services and skill outsourcing — but not as a key hub for manufacturing.

Despite a large population and abundant resources, India still lags in global competitiveness in production. Why?

Post-independence India was preoccupied with laying the foundations of a new democracy. Priorities were placed on resolving territorial issues, managing borders and stabilising governance. That diverted attention from cultivating a manufacturing and innovation culture. Coupled with a dependency on borrowed technologies, India missed critical opportunities to develop in-house capabilities during its formative years.

The result: a perception, both at home and abroad, of India as a consumer economy rather than a producer.

Rediscovering India’s potential

India is a land of immense talent and traditional skills. Beyond urban centres and tech-savvy youth, rural India is full of skilled artisans. Craftspeople in remote villages excel at everything from wooden carvings to pottery to textiles — often with no formal education or resources.

The issue is not a lack of talent. It’s the absence of a structured system to nurture those skills and integrate them into the modern economy. With proper organisation and support, this depth of craft could fuel a manufacturing renaissance.

A cultural shift: from consumption to creation

If India is to transform its economy, it must foster a Research, Design, Development and Manufacturing (RDM) culture. Here is what that could look like.

1. Focus on semiconductors and IoT ecosystems

• Semiconductors are the backbone of modern technology. Combined with the growing IoT market, they represent a massive business opportunity.
• The two fields are interconnected but serve distinct markets. A strong focus on both can help India tap into different global demands.

2. Encourage investment in innovation

• Historically, the fabless semiconductor industry faced challenges of high capital requirements, long ROI cycles and uncertain outcomes. The growing demand for connected devices and edge AI has renewed investor interest.
• India needs investment-friendly environments — clear incentives, infrastructure and streamlined processes — to attract both global and domestic funding.

3. Leverage emerging trends

The technology landscape is being reshaped by:

• Edge AI and ML — devices with embedded inference, transforming industries.
• 5G connectivity — high-speed communication as a baseline assumption for connected devices.
• Power efficiency — sustainable, low-power designs as a default, not a feature.

India must align its manufacturing goals with these trends to stay relevant globally.

A roadmap for India’s manufacturing renaissance

India’s transformation into a producer-driven economy requires a multi-pronged approach:

• Skill development — leverage India’s vast talent pool, both in urban centres and rural areas. Upskill workers in emerging technologies like semiconductor design, IoT and AI.
• Policy support — clear policies to incentivise manufacturing, provide tax benefits and encourage R&D investment.
• Public-private partnerships — collaborate with industry leaders to set guidelines for startups, and share insights from past successes and failures.
• Infrastructure development — build state-of-the-art facilities, including semiconductor fabs and innovation hubs, to support advanced manufacturing.

The shift toward intelligent devices

The rise of intelligent, connected devices presents a golden opportunity for India. Unlike traditional standalone products, today’s devices are always on, always connected and always learning. The industry is being reshaped by:

• AI and ML at the edge — on-device intelligence that reduces latency and improves user experience.
• 5G connectivity — faster communication and new possibilities for IoT.
• Sustainability — power-efficient devices as a category, not a niche.

These trends have created a renewed push for semiconductor innovation. India has to seize the moment to establish itself as a global player.

A call to action

India has the talent, the resources and the market potential to lead the next wave of global manufacturing. What it needs is a cultural and strategic shift — one that prioritises production, innovation and sustainability.

The global demand for smart, connected, efficient devices will only grow. By investing in skill development, technology and infrastructure, India can rise to the challenge and carve its place as a global manufacturing hub.

The time is now. Let’s move from being a consumer nation to a producer powerhouse.