India’s manufacturing sector is at the threshold of a “once-in-a-generation” opportunity to leapfrog global competitors by transitioning from a low-cost labour model to an innovation-driven manufacturing ecosystem, according to the newly released Accel Advanced Manufacturing Report 2025. The report, unveiled during the Accel Advanced Manufacturing Summit, emphasises that the global manufacturing landscape is undergoing structural changes created by supply chain realignments, technological disruption and favourable geopolitical trends, all of which present India with a unique chance to redefine its place in the global industrial order.

Mr. Prashanth Prakash, Partner at Accel, noted that cost arbitrage alone is no longer a sustainable strategy and that global competitiveness will increasingly be determined by a country’s ability to design and deliver complex, high-tolerance products supported by strong intellectual property (IP). Future growth will be driven by India’s ability to embrace advanced manufacturing capabilities, integrate innovation into product design, and build strong value chains across sunrise sectors such as precision engineering, aerospace, electric vehicle (EV) components, semiconductors, robotics, and advanced materials.

A Favourable Macroeconomic and Policy Environment

The report stresses that India’s macro-environment is particularly favourable, as global corporations are restructuring their supply chains to diversify beyond traditional hubs. This shift is combined with ongoing technological transformation in the manufacturing industry and strong domestic support via central government initiatives such as the Production Linked Incentive (PLI) schemes, making this the best opportunity in decades for India to build a modern and globally competitive manufacturing base.

However, effective policy execution remains a critical challenge. Without coordinated implementation and collaborative engagement across government and private industry, the window of opportunity could narrow quickly. Policy momentum must be matched with the development of deep-tech capabilities, risk-tolerant capital investment, and an industry-wide focus on talent development to achieve scale in advanced manufacturing domains.

Global Mindset and Precision as Growth Engines

Mr. Prayank Swaroop, also a partner at Accel, emphasised that Indian founders must adopt a global mindset from the very beginning, designing products and supply chains that can compete in international markets from Day One. He noted that precision engineering is no longer a niche, but a key growth engine for countries aiming to lead in advanced manufacturing.
For India to compete effectively, manufacturing in sunrise sectors must incorporate high quality standards, emphasise technology-enabled processes, and focus on total cost of ownership, rather than purely low labour costs.

The Need for Patient Capital and Cutting-Edge Talent

The report highlights the importance of patient and risk-tolerant capital to support hardware development, IP creation, and the long product cycles typical in advanced manufacturing sectors. Unlike software, which often benefits from shorter build-and-deploy cycles, advanced industrial product development requires sustained investment, longer gestation periods and global-scale testing.
At the same time, there is an urgent need to upskill talent in areas such as AI-driven product design, robotics, additive manufacturing, simulation technologies and automation enabled by the Internet of Things (IoT). These emerging skill sets are expected to be the backbone of India’s long-term manufacturing competitiveness.

Technology Adoption as a Differentiator

The report emphasises that technology adoption—particularly in artificial intelligence, automation, robotics, and advanced simulation systems—will be the ultimate differentiator between countries that lead in advanced manufacturing and those that remain stuck in older models. Indian companies that integrate these capabilities into their design, testing and production processes will be better able to meet global specifications and enter high-value supply chains.

According to Accel, the most promising sunrise sectors also support strong domestic demand and align with national programmes such as Make in India, Atmanirbhar Bharat, and the PLI schemes. The combination of policy alignment and technology integration gives India a rare opportunity to shift from being an assembly-focused base to becoming a creator of intellectual property, designs and complex industrial technologies.

Conclusion

In conclusion, the Accel advanced manufacturing report makes an urgent but optimistic call for action: India can leapfrog in global manufacturing with innovation, provided it leverages the current geopolitical and technological momentum.
By moving beyond low-cost labour, harnessing deep-tech capabilities, investing in precision engineering, and adopting a global-first mindset, India can establish itself as a major industrial powerhouse across sunrise sectors like aerospace, semiconductors, EV components and robotics.
Seizing this opportunity will require effective policy execution, availability of patient capital, significant upskilling of the workforce, and rapid adoption of advanced technologies. If India can integrate these elements in a unified strategy, it has the potential to define its place in the global industrial order for decades to come.

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