PM Modi Signals India’s Global Manufacturing Ambitions In Gujarat

India is undergoing a quiet but decisive transformation on the global industrial stage, moving beyond its traditional role as the world’s back office or a domestically focused manufacturer and positioning itself under the leadership of Prime Minister Modi as a formidable exporter of high-value products ranging from locomotives to aerospace components.

PM Modi’s Visit To Gujarat: More Than Symbolism

PM Modi’s recent visit to Gujarat marked a significant milestone in this journey.

Far from a ceremonial appearance, his inauguration of the Dahod locomotive manufacturing plant sent a strategic message: India is ready to build for the world.

During the visit, PM Modi unveiled a domestically manufactured electric locomotive, equipped with regenerative braking systems designed to enhance energy efficiency.

India Clinches Record Railway Export Order

Reinforcing its export agenda, Indian Railways recently secured a ₹2,000 crore contract from Guinea for 140 diesel locomotives.

These will be built at the Marhowrah plant in Bihar, marking one of India’s largest-ever railway export deals.

This order represents more than commercial success it underscores India’s emergence as a competitive force in the global rolling stock market, with PM Modi’s government actively championing the shift.

Aerospace Sector Lifts Off

While the railways gather momentum, India’s aerospace industry is beginning to soar.

Civil Aviation Secretary Sameer Kumar Sinha revealed that global OEMs (Original Equipment Manufacturers) now procure over $2 billion annually in aerospace components and services from India.

The All India Association of Industries estimates that the domestic aerospace and defence market could reach $70 billion by 2030.

Also Read: PM Modi Highlights Army’s Response To Terror Attack During Gujarat Visit

To fast-track this growth, the newly formed Aerospace India Association (AIA) has been tasked with increasing aerospace exports tenfold from under $2 billion today to $20 billion within the next decade.

The ambition may be bold, but it aligns closely with India’s broader manufacturing strategy, backed strongly by PM Modi.

Aviation Policy Reforms Strengthen The Base

Civil Aviation Minister K Rammohan Naidu recently outlined the government’s vision to transform India into a global aviation hub.

The strategy includes developing resilient supply chains, promoting indigenous manufacturing, and accelerating regional aircraft programmes.

A key enabler of this vision came in the form of a long-overdue tax reform.

In July last year, the government introduced a uniform 5% Integrated GST on all aircraft and engine parts.

This replaced a disjointed regime of varying tax rates and resolved the long-standing issue of inverted duty structures and blocked input tax credits, an important step towards making India an attractive Maintenance, Repair and Overhaul (MRO) destination.

The Formula: PLI Schemes + Engineers = Export Growth

Driving India’s industrial ascent is a strategic combination: low labour costs, a high number of skilled engineering graduates, and generous government support through Production Linked Incentives (PLI).

While the acronym may sound bureaucratic, the results are tangible—global firms increasingly find it difficult to ignore India as a manufacturing base.

Challenges Remain: Meeting The Global Standard

Despite this progress, the path from ‘Make in India’ to ‘Made for the World’ is not without obstacles. Securing export orders is only part of the challenge.

Maintaining international standards in quality, consistency, and delivery timelines remains a litmus test.

Moreover, global factors such as trade disputes and geopolitical instability could disrupt the very supply chains India seeks to strengthen.

A Strategic Pivot Under PM Modi

Nonetheless, under PM Modi’s leadership, India is making a calculated and visible shift from being a service-driven economy to an export-oriented manufacturing powerhouse.

Whether on rail tracks or in the skies, the message is clear: India intends not just to make in India, but to manufacture for the world.