India stands at an inflection point in its economic history. With the right policies, entrepreneurial energy, and manufacturing investments, India has the potential to become the world’s next great manufacturing superpower. But this will only happen if we develop a new generation of manufacturing entrepreneurs willing to take the risks, make the investments, and build for the long term.
The Manufacturing Gap
India’s manufacturing sector contributes only about 15-17% of GDP, compared to China’s 27% and South Korea’s 25%. We have a young population, improving infrastructure, and growing domestic demand — all the ingredients for manufacturing success. What we need is more entrepreneurs willing to set up factories, invest in quality, and compete globally.
Lessons from the Inverter Industry
The inverter industry is a case study in what Indian manufacturing can achieve. When I started Su-kam in the 1990s, most power electronics in India were either imported or manufactured with imported components. Over time, Indian companies developed local supply chains, trained local engineers, and created products that competed globally. Today, India exports inverters and solar products to dozens of countries. This journey shows what is possible when entrepreneurs commit to manufacturing excellence.
Challenges That Must Be Addressed
Manufacturing in India remains challenging. Land acquisition, environmental clearances, labor laws, power costs, logistics, and access to affordable capital — these are real obstacles that policymakers must address. The PLI (Production Linked Incentive) scheme is a step in the right direction, but implementation needs to be simpler and faster.
A Message to Young Entrepreneurs
If you are a young entrepreneur considering your path, I urge you to consider manufacturing. Yes, it is harder than launching an app. It requires more capital, more time, and more patience. But the rewards — in terms of job creation, technology development, and lasting contribution to the economy — are immense. India needs young people who are willing to get their hands dirty, learn how things are made, and build companies that create real things.
The next decade will be decisive for India’s manufacturing ambitions. The entrepreneurs who step up today will shape India’s economic destiny for generations to come.
