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India emerging as global manufacturing hub amid global supply chains realignment: Assocham

09 Jul 2026 Evaluate

Amid ongoing realignment of global supply chains, the Assocham in its report has highlighted that India is emerging as a major beneficiary and is rapidly strengthening its position as one of the world's leading manufacturing destinations. Though China remains the world's largest manufacturing economy, the report noted that the adoption of China+1 policy by the global firms has increased the distribution of new investments and production capacity across multiple economies. It added that firms are opting nearshoring and friendshoring strategies to build resilient and diversified supply chains.

On the country’s manufacturing resilience, Assocham pointed that India has emerged as one of the emerging manufacturing leaders. It added that the country’s manufacturing performance relative to the global average is improved in the post-pandemic period. India's average manufacturing growth rose from 3.44% in the pre-pandemic period (2016-19) to 4.15% in 2022-25, moving from below the global average to nearly two percentage points above the world benchmark.

The report noted that the country’s improving manufacturing performance reflects the impact of sustained reforms and growing investor confidence. Besides, India is well-positioned to consolidate its manufacturing leadership by accelerating logistics and industrial infrastructure, strengthening domestic supplier ecosystems and leveraging Free Trade Agreements to integrate more deeply with global value chains.

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