Industrial manufacturing is at an inflection point

      driven by the rapid adoption of digital technologies that enhance productivity, quality, and sustainability, intelligent systems such as artificial intelligence, automation, and advanced analytics are redefining traditional processes - enabling predictive capabilities, smarter decision-making, and streamlined operations.

      To remain competitive, manufacturers are building agile ecosystems that can adapt to evolving market demands and technological disruptions. This transformation requires more than advanced tools—it calls for a culture of innovation, workforce upskilling, and robust cybersecurity. AI has become a necessity rather than an option, enabling predictive maintenance, intelligent automation and data-driven optimization. Aligning digital strategies with operational goals is now critical for long-term success,

      India's manufacturing sector exemplifies this shift. Supported by initiatives like Make in India and the National Manufacturing Commission, and accelerated by lessons from recent supply chain disruptions, the focus is on resilience, inclusivity, and sustainability. Localised manufacturing that engages communities strengthens both the domestic economy and India’s global footprint.

      While there may be a cohort that could face significant challenges, those able to emerge from the three recent global crises (a health crisis, a geopolitical crisis and an inflation crisis) should find themselves in a strong position to achieve outpaced growth. Organisations that embrace the convergence of technology, policy, and innovation will lead the next era of industrial growth.

      KPMG 2025 Global Industrial Manufacturing & Automotive CEO Outlook

      CEOs have an exciting opportunity to transform their operations and set the pace for a bold and bright future
      KPMG 2025 Global Industrial Manufacturing & Automotive CEO Outlook

      Some of our focus areas in the industrial manufacturing category include:

      • Cement and building materials
      • Construction equipments
      • Capital goods
      • Paper and packaging
      • Electronics
      • Electrical equipment
      • Conglomerates

      How can KPMG in India help?

      Construction
      • We at KPMG in India, understand manufacturing industry is at a turning point – where disruption creates both immense opportunities and significant challenges.
      • Our professionals go beyond this era of change by help in taking decisive action to secure long-term success.
      • We help organisations to navigate this shift of new technologies, evolving customer expectations and emerging competitors.

      Why select KPMG in India?

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      KPMG in India empowers businesses to transform, scale, manage risks, and enhance performance.


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      We provide cutting-edge services to build stronger customer relationships for lasting success.

      Driving growth with Industrial Manufacturing trends

      S Sathish

      Partner and National Sector Leader – Industrial Manufacturing

      KPMG in India

      • To become one of the leading global players in the semiconductor sector, India should focus on:
         

        • building the entire ecosystem to scale,
        • minimising dependency on imports for components,
        • raising talent in design & hitech manufacturing operations, and
        • enabling setting up of manufacturing clusters with the required infrastructure.
      • India’s electronics and semiconductor sector has gained real momentum over the past ten years. Electronics output has grown nearly six times, exports are rising steadily, and the sector continues to draw strong FDI. Ambitious national targets now look achievable. Government initiatives like PLIs for electronics manufacturing, component manufacturing, and design-led innovation have created a strong push across the entire value chain

      Apaar Bhatnagar
      Apaar Bhatnagar

      Associate Partner, Industrial Manufacturing

      KPMG in India

      Semiconductor lifecycle is notoriously measured in years and billions of dollars. If India is to secure a meaningful position in the global semiconductor value chain, the focus must shift from chasing multi‑decade benchmarks to compressing product‑level lifecycles and time‑to‑impact.

      A winning playbook starts with a bold north star and a clear‑eyed assessment of gaps - limited system & architecture design depth, nascent FAB & OSAT capabilities, a thin equipment backbone, and fragmented infrastructure.

      From there, success hinges on making deliberate where‑to‑play choices: end‑markets aligned to India’s demand momentum (AI infra, EVs, power electronics, renewables), focused material bets (Si vs. compound), pragmatic node strategies (28/40 nm), and a margin accretive product mix.

      Execution will matter more than intent - anchored by home‑grown champions, world‑class talent, tightly integrated clusters, deep industry‑academia‑startup partnerships, and consistent, enabling policy.

      In semiconductors, scale follows focus - and speed creates advantage

      S Sathish

      Partner and National Sector Leader – Industrial Manufacturing

      KPMG in India

      Creating the future of industrial operations means moving from hardware-bound systems to software-defined automation and robotics which enables flexibility, scalability, being data-driven, and connected. This is the need of the hour to scale up Indian manufacturing ecosystem.

      S Sathish

      Partner and National Sector Leader – Industrial Manufacturing

      KPMG in India

      India has made significant progress in reshaping its manufacturing landscape over the past decade, but deeper technological and ecosystem transformation is needed to compete with global leaders. While the top quartile of Indian manufacturers shows reasonable capability, a significant portion of companies are far below the desired digital maturity. Without widespread adoption of Industry 4.0, automation and AI-enabled systems, India risks losing competitiveness to countries that scaled digitalisation much earlier.

      Hear from the experts

      India’s electronics and semiconductor sector has gained real momentum over the past ten years. Electronic sector's output has grown nearly six times, exports are rising steadily, and the sector continues to draw strong FDI

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      S Sathish brings policy, strategy, and sectoral insights to the forefront at GMC 25, shaping the roadmap for India’s manufacturing growth.

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      Jeffry Jacob shares powerful thoughts on what will drive India’s manufacturing momentum in the years ahead at the ETGMC’25.

      Explore how industry leaders are integrating AI to enhance efficiency, innovation, and sustainability across India’s industrial landscape. 


      India Union Budget 2026-27: Our Sector Insights

      Download KPMG in India point of view 2026 - Automotive and Industrial Manufacturing

      KPMG in India point of view 2026 - Automotive and Industrial Manufacturing

      Budget 2026 strengthens MSME driven supplier ecosystems, reducing logistics and cost pressures, and enabling localisation of critical technologies

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      Key Contact

      S Sathish

      Partner and National Sector Leader – Industrial Manufacturing

      KPMG in India

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