Could India become the next global manufacturing hub?

India’s factory growth surged to a 14‑month high in June, with the manufacturing PMI rising to 58.4. That jump was driven by rising exports, especially to the U.S, which lifted output and triggered record-breaking hiring. These gains spread through the economy, boosting incomes, consumption, and demand for services. 

This manufacturing momentum is reshaping investment flows and supply chains. Global firms including Apple via Foxconn are investing in components and electronics plants, leveraging India’s PLI incentives. Meanwhile, regional hubs like Uttar Pradesh and Chennai are emerging as production centers, drawing capital into industrial and logistics assets. 

For markets, manufacturing growth has multiple impacts. It lifts industrial stocks, raises demand for raw materials, and stimulates infrastructure plays. However, cooling business sentiment and potential U.S. trade barriers mean market attention is turning to cost pressures, inflation, and global tariff risks. Still, the long‑term trend favors India’s climb in global supply chains.