Govt’s Infrastructure Drive Spurs Manufacturing Confidence, Says Report

India’s manufacturing and logistics ecosystem is undergoing a transformation, fuelled by strong policy support and large-scale infrastructure investment.

A new report by Cushman & Wakefield titled ‘Elevating India’s Manufacturing Resilience: Charting the Path to Self-Reliance’ finds that 88% of manufacturers have made expansion decisions directly due to the government’s infrastructure initiatives.

Projects like Bharatmala, Sagarmala, Dedicated Freight Corridors, and the National Industrial Corridor Development (NICD) are seen as game-changers.

Nearly 86% of respondents acknowledged that these initiatives had positively impacted their operations.

Among large-scale manufacturers, this sentiment is even more pronounced—94% stated that the upgrades have significantly shaped their expansion plans.

Additionally, 95% of all respondents reported enhanced access to logistics and transport infrastructure, which is crucial for boosting operational efficiency and market reach.

Policy measures driving strategic change

Beyond infrastructure, policies like the production-linked incentive (PLI) schemes and the ‘Make in India’ campaign are actively influencing business strategies.

Over 40% of manufacturers surveyed said that these schemes have had the greatest effect on their growth plans.

Meanwhile, the National Logistics Policy (NLP) and NICD were noted as particularly useful for MSMEs.

About 54% of respondents said that better logistics access and connectivity to industrial parks were crucial for their operations.

The report also highlights growing optimism about India’s business environment.

Around 77% of respondents believe the ease of doing business has improved, with this figure climbing to 86% among larger firms.

“India’s manufacturing sector is undergoing a structural shift. Our findings indicate a strong alignment between infrastructure investment, policy clarity, and industry intent,” said Gautam Saraf, Executive Managing Director, Mumbai and New Business, Cushman & Wakefield.

Key recommendations for future growth

To sustain momentum, the report recommends addressing long-standing issues related to cost, capacity, and MSME productivity. It outlines a five-point strategy:

1. Speed up the development of plug-and-play industrial parks
2. Reassess MSME classifications to allow scaling
3. Fast-track multimodal logistics parks (MMLPs)
4. Focus on skill development tailored to industry needs
5. Strengthen MSME exports via digital platforms and targeted incentives

As India builds on its manufacturing resurgence, strategic alignment of policy, infrastructure, and business needs will be key to long-term success.

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