India’s Manufacturing Poised For Growth: Cushman & Wakefield

India’s manufacturing sector is undergoing a major transformation, according to a new report by Cushman & Wakefield.

The report is based on a survey of 94 senior leaders from manufacturing and logistics, including CEOs and supply chain heads.

The findings were released in June 2025 through the report titled ‘Elevating India’s Manufacturing Resilience: Charting the Path to Self-Reliance’.

The change is happening across India, especially in industrial hubs and Tier II and Tier III cities with growing infrastructure.

88% of respondents plan to expand operations, citing confidence from infrastructure projects like Bharat Mala and Sagar Mala.

How it works

 Manufacturers credit better roads, freight corridors, and logistics access as key reasons for their growth and expansion plans.

95% said logistics access has improved significantly due to government projects and industrial corridor development.

94% of large enterprises believe infrastructure upgrades are central to their business growth strategies.

Gautam Saraf of Cushman & Wakefield said India is seeing strong alignment between policy support and industry expansion intent.

Policy measures like the PLI scheme and National Logistics Policy are driving business confidence and operational expansion.

Over 40% of leaders said government policies had a strong impact on their decisions to grow in India.

77% of respondents, especially MSMEs, said ease of doing business and connectivity had improved under recent reforms.

Despite progress, the report flags issues like high logistics costs and low warehouse capacity compared to global standards.

India offers only 0.2 sq ft of warehouse space per urban resident versus 47.3 sq ft in the United States.

Low domestic value addition (17%) and wide skill gaps, especially in MSMEs, remain major hurdles for future competitiveness.

The report recommends five key steps: plug-and-play parks, logistics upgrades, skilling, MSME reforms, and export support platforms.

Plug-and-play parks, which are ready-to-use with clearances, are expected to drive quick industrial expansion.

The 2025–26 Union Budget allocated ₹2,500 crore for developing 12 such plug-and-play parks across India.

81% of companies plan expansion over the next two to three years, with many targeting smaller cities for growth.

70% of firms are willing to shift operations to Tier II and III cities for better cost and market access.

Cushman & Wakefield calls this moment a turning point for Indian manufacturing and economic self-reliance.

The report says India’s mix of policy, infrastructure, and private intent can boost global manufacturing competitiveness.

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