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The Print
03-07-2025
- Business
- The Print
India's infrastructure revolution is powering its rise in manufacturing
The Production Linked Incentive (PLI) scheme is a crucial catalyst for India's economic resurgence. Launched in 2020 and expanded to 14 key manufacturing sectors, it aims to transform India into a globally competitive manufacturing hub by rewarding incremental production, exports, and investment. Flagship initiatives like 'Make in India' and 'Ease of Doing Business' reforms cultivate a supportive environment for manufacturers, fostering efficiency, scalability, and resilience. The Goods and Services Tax (GST), for instance, dismantled inter-state trade barriers, simplified compliance, and integrated the national economy, leading to reduced logistics costs and enhanced competitiveness. India is strategically repositioning itself on the global economic landscape, expanding significantly into international export markets. This ambitious shift is driven by robust infrastructure overhaul, well-conceived policy reforms, and a clear long-term vision for 'Viksit Bharat 2047'. As of March 2025, incentives worth Rs 21,534 crore have been disbursed for 12 sectors. The scheme has attracted investments exceeding Rs 1.61 lakh crore, stimulated production valued at Rs 16.5 lakh crore, and facilitated exports amounting to Rs 5.31 lakh crore (approximately $61.76 billion). These figures highlight the scheme's effectiveness in boosting domestic manufacturing and attracting $24.14 billion in FY2024-25, significantly driven by the PLI scheme. The government's continued commitment is evident in the scaled-up PLI budget for FY 2025-26. Also read: India's manufacturing sector is stagnant. Relying on PLI not enough, policies need a relook Modernising infrastructure: Connectivity, efficiency India's manufacturing aspirations are gaining solid ground through significant infrastructure modernisation, reducing costs, and enhancing reliability for global supply chains. Manufacturing in the rail sector Indian Railways, often regarded as the nation's vital artery, forms a foundational element of this infrastructure narrative. It facilitates the annual transport of over 6.5 billion passengers and 1.5 billion tonnes of freight across India's vast geographical expanse. This historic institution is currently undergoing an extensive modernisation programme, incorporating advanced technologies, upgrading its physical infrastructure, and improving service delivery to meet the demands of a rapidly expanding economy. Under the ambitious National Rail Plan, India has allocated an estimated $109 billion for capital expenditure between 2026 and 2031. The investment in the railway sector from 2014 to 2024 has already surpassed the total cumulative outlay of the preceding six decades, with a record $30 billion earmarked for the fiscal year 2025–26 alone. This significant financial commitment is translating into substantial industrial opportunities, with projections indicating a 25% increase in demand for rolling stock by 2031. India's growing proficiency in designing and manufacturing world-class rail technology is increasingly evident. The success of the Vande Bharat Express, India's first indigenously developed semi-high-speed train, now with over 100 operational services, highlights the nation's engineering prowess and its potential for exports. These trains are not merely 'Made in India'; they are engineered for global application like featuring energy-efficient regenerative braking systems. Indian Railways recently secured a significant Rs 2,000 crore order from Guinea for 140 diesel locomotives, demonstrating the country's aspiration to become a major participant in the global rolling stock market. India is rapidly establishing itself as a global provider of both urban and mainline rail solutions, driven by a procurement policy that aligns with the 'Make in India' initiative. International players like Alstom are leveraging India's skilled engineering talent and cost-effective manufacturing capabilities to produce and export rolling stock for prestigious international projects, including the Sydney Metro and Queensland Rail, solidifying India's position as a crucial hub within the global rail supply chain. Landmark projects like the Dedicated Freight Corridor (DFC) are fundamentally reducing transit times and logistics costs, with the Eastern DFC fully operational and the Western DFC expected to be fully operational by October 2025. The DFC has slashed freight train travel times by up to 50% and increased traffic from 247 to 352 average trains per day by February 2025. Maritime manufacturing prowess India's maritime sector is undergoing strategic transformation to unlock its potential as a global trade enabler. With a vision to become one of the top five shipbuilding nations by 2047, India is targeting an additional 4 million Gross Registered Tonnage (GRT) in shipbuilding capacity, underpinned by dedicated policy support and capital investment. The government has launched a Rs 25,000 crore Maritime Development Fund, with 49% government participation, to provide long-term financing for shipbuilding, port modernisation, and inland water transport. To level the playing field for domestic players, the revamped Shipbuilding Financial Assistance Policy and customs duty exemptions on raw materials have improved cost competitiveness and enhanced investor confidence. India's strategic Sagarmala programme continues to drive the modernisation of port infrastructure, strengthen multimodal logistics connectivity, and reduce logistics costs — all critical to enhancing ease of doing business in the maritime domain. A standout achievement has been the 320% increase in inland waterway cargo movement since 2014, marking a significant shift toward affordable, eco-friendly, and efficient freight transport. Investments in national waterways and the inclusion of large vessels in the infrastructure master list are strengthening last-mile trade connectivity. This combination of geographic advantage, policy support, and a growing maritime workforce is turning India into a credible alternative to traditional East Asian shipbuilding hubs. Beyond these, the Bharatmala Pariyojana, a massive highway development project, has seen substantial progress, with 19,826 km constructed out of 26,425 km awarded by February 2025. This expansion of national highways enhances India's connectivity and trade facilitation. PM Gati Shakti and the evolving logistics landscape The PM Gati Shakti National Master Plan, launched in 2021, integrates infrastructure ministries to streamline project approvals and coordination. It aims to reduce logistics costs from 13-14% of GDP to global standards of 8-9%. This has led to a 30% reduction in turnaround times at major ports. The Ministry of Finance has identified 434 projects under PM Gati Shakti with a mega push of ₹11.17 lakh crore to boost logistics infrastructure. India's warehousing sector, now a critical enabler, is projected to grow significantly, reaching 516 million sq ft by 2026, up from 344 million sq ft in 2023. This growth is driven by government policies, infrastructure upgrades, and the e-commerce boom, with increasing adoption of automation and digital logistics solutions. India's efforts are reflected in the World Bank's Logistics Performance Index (LPI) 2023, where India improved to 38th place globally out of 139 countries, a notable jump from 44th in 2018. Also read: Indian women own 55% manufacturing units. What they need are smartphones & training Broadening manufacturing horizons India's infrastructure surge is driving unprecedented demand across various industrial sectors. Large-scale programmes like Bharatmala, PM Gati Shakti, and the Jal Jeevan Mission are expanding national connectivity and basic services, while anchoring long-term demand for construction equipment, building materials, and prefabricated components. The policy focus on local manufacturing and procurement has fostered global production hubs in India, serving both domestic mega projects and export markets. Construction equipment and special machinery The construction equipment sector and the broader building materials market are projected for substantial growth, aligning with global trends. India's growing strength in prefabrication technologies — offering speed, consistency, and sustainability — is positioning it as a key supplier to both domestic and global projects. Indian manufacturers are increasingly embedding energy efficient materials and low-carbon technologies into their product lines, shaping the future of infrastructure through sustainable, high-quality, and scalable manufacturing. This includes a burgeoning capability in producing advanced construction machinery and specialised equipment vital for large-scale infrastructure development, from road construction to urban development projects. The emphasis on 'Make in India' has fostered a robust ecosystem for the design, development, and production of these critical assets, reducing reliance on imports and boosting indigenous technological prowess. This growth, driven by private participation, reflects rising investor confidence in India's manufacturing strength and its emergence as a global production hub. Also read: India's manufacturing workers saw prices rise faster than incomes even as their productivity fell The export engine: Policy synergy and human capital India's ascent is fuelled by competitive labour costs, a vast pool of engineering graduates, and substantial government backing. This synergy makes India an attractive proposition for global corporations diversifying supply chains. India offers a unique blend of scale, skilled human capital, and cost advantages, with a youthful demographic, a rapidly expanding domestic market, and abundant natural resources, making it an indispensable node in global production networks. Recent manufacturing and export gains are seen in unexpected sectors, with electronic goods exports, particularly smartphones and components, jumping significantly. Successes in pharmaceuticals, chemicals, and food processing further diversify India's export basket. While transitioning from 'Make in India' to 'Made for the World' presents challenges in meeting stringent global benchmarks, India's fundamental transformation remains robust. Rooted in clear policy directives, demographic strengths, and significant infrastructure development, India is decisively repositioning itself as a pivotal player in global value chains. A global manufacturing powerhouse in the making India's recent manufacturing upswing is notable for its breadth and narrative shift towards higher-value, technology-driven sectors. Sustained infrastructure investments are poised to lock in these gains, establishing India as a dependable part of global supply chains, especially as the world seeks to de-risk from over-dependence on single countries. India is evolving into a strategic partner in global progress, offering an unparalleled combination of scale, innovation, supportive policies, and rich resources. As businesses prioritise diversification, speed, and sustainability, India stands out as a compelling choice — agile, ambitious, and strategically aligned with the future of global trade. The opportunity is historic, as the nation moves from 'build and export' to 'innovate and lead' on the global stage. Nikhil Gandhi is a Senior Manager, and Karan Sethi is Vice President with the Infrastructure Team at Invest India. Sethi tweets @KaranSe75500152. This article is prepared with valuable contributions from the Infrastructure Team at Invest India — Raghav, Anmol, Rhea, and Nandini. Views are personal.
Time of India
28-06-2025
- Business
- Time of India
Transport commissioner issues termination notices to abolish border check posts in Maharashtra
Mumbai: Transport Commissioner Vivek Bhimanwar on Saturday issued termination notices to 22 border check posts in the state. This indicates that the border check posts, which are allegedly a hub for malpractices, are finally being abolished in Maharashtra. The decision was in line with the central govt directives and the implementation of the Goods and Services Tax (GST) system. The aim is to streamline interstate transport and remove obstacles to the movement of commercial vehicles, said a senior transport official. A year ago, Madhya Pradesh abolished its border check posts. State transport minister Pratap Sarnaik said that these border check posts, established in 1966, were intended to control vehicle movement, ensure compliance with transport regulations, and collect road taxes. However, after the implementation of GST and advancements in digital measures, the need for these physical check posts diminished. You Can Also Check: Mumbai AQI | Weather in Mumbai | Bank Holidays in Mumbai | Public Holidays in Mumbai In the past, Chief Minister Devendra Fadnavis also instructed the closure of these check posts. The transporters' unions repeatedly demanded their closure through various representations. Consequently, a positive report addressing administrative issues was sent to the CM, and on approval, the border check posts will now be closed, Sarnaik said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Circus Magic Unveiled GCE Read More Undo In this context, a committee chaired by Bhimanwar conducted an in-depth study of the decision's impact and effectiveness. Based on this report, the govt concluded that the need for physical inspections could be effectively replaced by online systems and electronic monitoring. This transition will increase efficiency, reduce delays, and help prevent malpractices, according to Sarnaik. Sources said that a private firm was appointed for the border check post project, and agreements were made for the operation and maintenance of the facilities. However, due to the decision to close these check posts, compensation of Rs 504 crore needs to be paid to the private entity, an official said. "Once this amount is paid, the related technology and immovable assets will become the property of the transport department," the official added. Bal Malkit Singh from All India Motor Transport Congress said, "This landmark decision comes in response to repeated appeals and follow-ups by transport unions, stakeholders, and the central govt. The move aims to eliminate bottlenecks in interstate transportation, enhance road safety, and implement a paperless, technology-driven monitoring system in line with the 'Ease of Doing Business' framework."
