India's manufacturing sector must pivot toward high-value production, experts warn

India's manufacturing sector faces a critical juncture as it seeks to capture a larger share of global supply chains, with industry experts calling for a fundamental strategic shift away from volume-driven production models.

The consensus among sector leaders centers on three key imperatives: establishing indigenous product design capabilities, enhancing manufacturing yields to reduce waste and inefficiencies, and developing domestic materials expertise. These changes are seen as essential for Indian manufacturers to move beyond assembly-based operations and secure greater value capture across the semiconductor supply chain.

The push comes as India looks to position itself as an alternative manufacturing hub amid global supply chain reconfiguration. Currently, many Indian operations remain focused on high-volume, lower-margin production, which limits the country's ability to build technological expertise and command premium pricing.

Industry observers note that developing world-class design and materials capabilities would enable Indian companies to compete at the higher end of the manufacturing spectrum. Such improvements would require sustained investment in research and development, skilled workforce expansion, and collaboration between government and private sector stakeholders to create an enabling ecosystem for advanced manufacturing.

The transition is viewed as integral to India's broader ambitions to establish itself as a critical node in global electronics and semiconductor manufacturing networks while maximizing domestic value addition.