Region/Countries: Asia, India Industry: Energy, Power and Control, Manufacturing Date: December 2019

Why this is important to Wisconsin businesses: Wisconsin companies can help supply Indian manufacturers with machinery and technologies.

A strong manufacturing sector is the backbone of any growing economy, including India. The government of India launched its Make in India program in September 2014 with the objective of facilitating investment, fostering innovation, building best-in-class manufacturing infrastructure, making it easy to do business and enhancing skill development. After Narendra Modi’s reelection in May 2019, his government is hatching a fresh strategy to boost the Make in India initiative, building on the successes of the first five years.

By 2025, India’s manufacturing sector is expected to reach $1 trillion by 2025 and constitute about 25% of India's GDP. Under the Make in India program, domestic manufacturing is expected to increase by 12% to 14% per year in the medium term. According to the World Bank, manufacturing contributed about 16% to the country's GDP in 2016, slightly higher than a global average of 15% in 2015.

On-going efforts in R&D, innovation, design and knowledge in India’s manufacturing sector have led to increased imports of high-tech products, including industrial machinery. Although India produces a wide range of industrial machinery and equipment and also exports industrial machinery, domestic machinery manufacturers have not been able to keep pace with growing demand.

Industrial machinery (excluding electronics) is the sixth-largest export sector for India, accounting for 8.8% of the country’s total exports of  $330 billion in FY 2018-19. Meanwhile, India continues to import innovative, technologically advanced process plants and machinery from advanced economies. In fact, industrial machinery (excluding electronics) is the fifth-largest import sector, accounting for 9% of India’s total imports of $513 billion in FY 2018-19.

Industrial and electrical machinery account for the largest share of exports from Wisconsin, totaling more than $8.3 billion in 2018. India’s growing manufacturing sector offers promising opportunities for Wisconsin exporters of machinery.