Archive · 21 Aug 2026
India’s Manufacturing Growth Gains Momentum, But Bottlenecks Remain
India is making more products inside the country than before.
Government efforts and strong demand are helping factories grow.
Electronics, solar panels, batteries, steel and cars are some examples.
One company is even making robots in India.
Another company plans to make a special kind of stronger, lighter steel for cars.
Businesses are also selling more products to other countries.
However, experts say factories still face difficult land rules, complicated labor laws and slow government approvals.
They also need more skilled workers, research and factory capacity to keep growing.
Experts said rising domestic demand and the Make in India focus are driving manufacturing growth across several sectors.
Electronics, renewables, solar panels, batteries, steel, automobiles and robotics have attracted new manufacturing investment.
Addverb is making robots domestically, while ArcelorMittal Nippon Steel plans to produce hot-forming steel at Hazira.
KEI Industries exports 18–20% of its products and aims to raise that share to 50% within eight to 10 years.
Experts cited complex land and labor rules, slow approvals, skills shortages, limited research investment and insufficient capacity as challenges.
- Who
- Indian manufacturers, business leaders and experts, including representatives of ArcelorMittal Nippon Steel, Addverb and KEI Industries.
- What
- They discussed manufacturing growth in India, its drivers and the obstacles that could slow further expansion.
- When
- During a panel discussion at Business Today’s India@100 conference; no date was specified.
- Where
- India, including manufacturing activity and planned production at Hazira.
- Why
- Growth is being supported by domestic demand, infrastructure investment, exports and the Make in India focus, but businesses need easier processes, more skills, research and capacity.
Growth Optimists
Cautionary Experts
Manufacturing momentum
Growth Optimists
Experts said India has moved forward, particularly in electronics and renewables, with serious investment and expanding domestic demand.
Cautionary Experts
The gains have occurred in only some industries, and broader progress depends on addressing persistent business constraints.
Competitiveness
Growth Optimists
Addverb said producing components in-house allows it to match competitors on the speed of innovation, while exports and new manufacturing areas are expanding.
Cautionary Experts
Complex land and labor requirements, varying state approvals and slow processes raise the cost and difficulty of doing business.
Future growth
Growth Optimists
Strong demand from infrastructure, renewable energy, steel, oil and gas and other sectors offers companies opportunities to expand production and exports.
Cautionary Experts
Companies that lack skilled workers, research investment or enough capacity may fail to meet demand and miss growth.
- Growth areas
- Electronics, renewables, solar panels, batteries, steel, automobiles, cables and robotics.
- Addverb production
- The Noida-based company manufactures robots and builds every part in-house because it could not find suitable suppliers for small orders.
- Steel investment
- ArcelorMittal Nippon Steel is set to begin producing hot-forming steel at Hazira.
- KEI exports
- KEI Industries currently exports about 18–20% of its products to Europe, the United States and other markets.
- Export target
- KEI plans to increase exports to 50% over the next eight to 10 years.
- Business obstacles
- Experts cited complex land issues, labor-law requirements, state-by-state approval differences and lengthy approval processes.
- Additional needs
- Experts called for more skilled manpower, research and development investment, and capacity to meet rising demand.