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India Rises in Global Manufacturing Rankings Amid Growing China+1 Shift

India Rises as a Global Manufacturing Hub

China+1 Strategy

News: India is emerging as one of the world’s fastest-growing manufacturing destinations, benefiting from the global China+1 strategy and the ongoing diversification of supply chains, according to a new ASSOCHAM report.

The report shows India’s average manufacturing growth increased from 3.44% (2016–19) to 4.15% (2022–25), placing it nearly two percentage points above the global average. 

India has joined major economies including the US, Germany, France, Italy, and the UK in outperforming global manufacturing benchmarks. ASSOCHAM attributes this growth to stronger domestic demand, improved logistics, infrastructure expansion, PM Gati Shakti, Production Linked Incentive (PLI) schemes, and rising investor confidence. Despite global uncertainties, manufacturers remain optimistic as India strengthens its role as a resilient manufacturing hub and an attractive alternative in global supply chains.