India's manufacturing PMI decreased slightly to 56.5 in September from 57.5 in August. This was mainly due to a slowdown in new orders and export orders during the period.
According to the latest Deloitte study, India鈥檚 economy is projected to grow between 7% and 7.2% in the current fiscal year. This projected growth is driven by strong government spending and a rising in manufacturing investments.
During the 64th ACMA (Auto Components Manufacturers Association) session, Vinod Aggarwal, president of the Society of Indian Automobile Manufacturers, announced that the Indian automotive industry crossed the $238.32 billion mark in fiscal year 2023-24, contributing approximately 6% to the country鈥檚 GDP. He also highlighted that India is now the third-largest market for passenger and commercial vehicles and the largest in the two-wheeler market.
At the recent Amaravati Drone Summit, the Indian government projected the drone market in India would grow from its current size of $654 million to over $1.4 billion by 2029, with the number of units expected to increase from 11,000 to around 62,000. Over 25 drone manufacturers in India produce different types of drones for civil, commercial, defense, and security applications.
India and the United States are poised to sign a $3.81 billion deal to export 31 Predator drones and establish an MRO (maintenance, repair, and overhaul) facility in India. These drones will enhance the surveillance capabilities of the Indian armed forces. General Atomics, the manufacturer of the Predator (MQ-9B) drones, has partnered with Indian company Bharat Forge to produce UAV components in India and plans to set up a global MRO hub in India.
According to a recent CRISIL report, India expects to become a major player in the global solar module market by 2029, with plans to export solar modules internationally. The country鈥檚 solar module manufacturing capacity is projected to reach approximately 125 GW by fiscal year 2029. With domestic demand estimated to be around 38-42 GW, this will result in a surplus of solar modules available for export.
According to a report by consulting firm EY-Parthenon and the Confederation of Indian Industry trade association, India鈥檚 white goods sector currently contributes 0.6% to the country's GDP and is projected to grow at a CAGR of 11%, reaching $60 billion by 2030. The sector鈥檚 GDP contribution is expected to increase by 150%, aiming to become the fourth-largest market by 2027.
GE Aerospace is increasing its component sourcing from India. The company already operates a facility in Pune and a technology center in Bengaluru and collaborates with 13 major Indian suppliers, including Tata Advanced Systems Ltd.
Yuzhan 都灵体育直播, a part of Taiwan鈥檚 Foxconn group, is investing around $1.5 billion to establish an assembly plant for smartphone display modules.
In addition to Tata Electronics, Karnataka-based Aequs Group is likely to be the second Indian company officially recognized as an Apple supplier. The company manufactures various products, including toys, consumer durables, and aerospace parts. It has begun trial production of MacBook enclosures and mechanical components for the Apple Watch.
A few recently announced projects and investment news items are listed below for your reference.
Yamaha Motor is investing in expanding its two-wheeler production capacity at its Chennai-based plant. The company plans to add facilities that will enable the production of an additional 35,000 motorcycles and 45,000 scooters each month.
Hyundai India Motors is opening a new plant in the town of Talegaon, on the outskirts of Pune, Maharashtra. The plant will increase its capacity by 1.1 million units. The company will additionally invest $200 million for a major revamp and modernization of its Chennai manufacturing facility.
Hisense has teamed up with Epack Durable to set up a manufacturing facility in Andhra Pradesh. The facility will manufacture air conditioners and other home appliances, with a production capacity of 1 million room air conditioner units by fiscal year 2028. Operations will commence in June 2025.
Bonfiglioli Transmissions is investing in a new facility in Cheyyar, about 90 kilometers from Chennai. The 25-acre plant will begin operations by 2025 and position Bonfiglioli as one of the largest gearbox manufacturers in India.
Solex Energy is setting up a new solar cell manufacturing facility in Gujarat with an initial capacity of 2 GW as part of its Vision 2030 strategy. The company plans to invest around $1 billion to support this initiative.
Jupiter Wagons plans to invest around $350 million to establish a new plant in Odisha, which will focus on producing forged wheelsets and significantly increase the company鈥檚 annual capacity from 20,000 to 100,000 units.
For more information, please contact Arun Mahajan at AMahajan@AMTonline.org.
