India’s share in global manufacturing could double in the next two years, driven by expanding business opportunities and growing global interest, said, Raj Subramaniam, CEO, FedEx Corporation.
Strong outlook
Speaking at the Indiaspora’s Forum for Good event in Abu Dhabi on Monday, Subramaniam emphasised India’s immense potential as it moves toward becoming the world’s third-largest economy by 2030.
“The opportunity for Indian manufacturing to double in the next two years is very big,” said Subramaniam, who also serves as Vice Chairman of the US-India Strategic Partnership Forum. “I think a lot of companies are finding ways to expand in India. It is certainly an interesting time over the next five years as we see how things play out.”
India’s new stature
At present, India accounts for 2.8 per cent of global manufacturing. However, with the government’s push for initiatives such as ‘Make in India’ and Production-Linked Incentives (PLI) schemes, global companies are increasingly turning to India as a key manufacturing hub. The shift comes amid global supply chain realignments, where businesses seek alternatives to China, and India is emerging as a preferred destination.
Subramaniam highlighted the evolving nature of the global economy, stating, “It’s a dynamic world, and things are changing dramatically as we speak. Make no mistake, the world is highly interconnected. I see a huge opportunity for Indian businesses. There is a sense of optimism and real change.”
The Indiaspora Forum for Good has brought together leaders of Indian origin from over 30 countries for a three-day summit in the UAE. The event aims to strengthen networks within the global Indian community and foster collaboration across sectors.
Subramaniam stressed the critical role of the Indian diaspora in India’s economic growth. As India scales newer heights, he urged the Indiaspora community to actively expand the ecosystem they have created.
“The role of the Indian community and Indiaspora is going to be even more important as the Indian economy grows,” he said. Encouraging deeper collaboration, he added, “Look at how we connect in a way that makes us more sustainable, especially when the opportunities for India, the Indian diaspora, and the Indian community are only increasing.”
He also underscored the power of collective effort, urging the global Indian community to think beyond conventional growth models. “Let’s make ‘one plus one equal ten,“ he said, emphasising the need for synergistic partnerships that drive exponential impact.
With the government’s focus on manufacturing, infrastructure, and digital transformation, experts believe India’s industrial output is poised for significant expansion. Subramaniam’s remarks reflect a broader confidence in India’s trajectory, reinforcing the view that the country is on the cusp of becoming a major global manufacturing powerhouse.
As global businesses explore opportunities in India, the next two years could be crucial in shaping the country’s manufacturing footprint on the world stage, economy watchers said.
Meanwhile, Arun Kumar, Managing Director, Celesta Capital, and Founding Member of Indiaspora said that fundamentals of Indian economy are good despite the uncertainty caused by the geopolitical events.
He noted that Indian manufacturing sector is increasing its capability significantly and its share of global manufacturing has to grow. Advanced manufacturing capabilities are improving, he noted. “If We think about the number of cars India makes and exports, we have come a long way. The whole supply chain redundancies requirements are pushing more things to be made in India. The manufacturing opportunities are there.
However there are still lot of work to be done in Ease of Doing Business and advanced manufacturing techniques and technologies. It is not easy. But India is very well positioned”, Kumar told BusinessLine here.
(This writer is at Abu Dhabi at the invitation of Indiaspora)