Bank of America says India's manufacturing needs 10% annual growth
India's manufacturing scene has some big goals ahead: a new Bank of America report says the sector needs to grow by 10% annually to reach that outcome by 2040.
If that happens, manufacturing could jump from making up 17% of India's GDP to 25%, and its value might soar from about $500 billion in 2024 to almost $2.3 trillion by 2040.
India needs more midsize firms
This kind of growth isn't just about numbers: it could mean better jobs and help move people from farming into higher-paying factory work.
The report points out that despite billions in government incentives, things like high electricity costs and heavy compliance obligations are holding back progress.
To really level up, India needs more midsize firms (not just tiny businesses), fewer hurdles, and a focus on productivity so more workers can find good work in manufacturing.