India is rapidly positioning itself as a key manufacturing and logistics hub. With growing infrastructure investment, a tech-enabled workforce, and an expanding consumer base, the country is emerging as a vital link in the future of global trade.
“Even amid rising global trade tensions, India continues to emerge as a significant growth opportunity,” Senthilnathan Shanmugam, Group Chief Executive Officer of EFL Global said.
“The country is continuously receiving investment in infrastructure and benefits from young, educated, and digitally savvy talent. Additionally, its market is expanding rapidly. According to a recent Economic Times poll, India’s GDP is expected to grow 6.6 percent in FY26.”
India’s strength, he notes, lies not only in demographics or market size, but in the structure of its international partnerships.
“India appears to possess a stronger competitive advantage in its Diversified Trade Partnerships, and India’s export portfolio is more diversified, too,” he said.
“With its large consumer market and relatively competitive labour costs, India’s focus on attracting foreign direct investment (FDI) and efforts to improve domestic industries offer significant opportunities.”
Geographic advantage
For global companies reassessing their sourcing and production networks, India’s advantages are becoming increasingly clear.
“India offers a powerful combination of scale, skill, and strategic location, making it an increasingly attractive manufacturing and supply chain hub for global companies,” Shanmugam explained.
“The country boasts a large, tech-enabled workforce, improving infrastructure, and a geographic advantage that allows easy access to key international markets.”
He pointed to government efforts as another driver behind India’s growing appeal. “Initiatives and reforms, such as Make in India, the Production Linked Incentives (PLI) scheme, and improvements in regulatory frameworks and digital processes provide key advantages.”
Despite positive momentum, businesses entering the Indian market must still navigate a complex regulatory environment.
“Managing regulatory challenges in India requires a proactive, localised approach,” Shanmugam stated.
“Companies can address these complexities by staying updated on policy changes, implementing digital systems, selecting locations based on incentives and infrastructure, and partnering with reputable local experts to ensure standards and certifications are met.”
With supply chain disruption becoming a near-constant in recent years, Shanmugam emphasised the need for agility and collaborative planning between local and international partners.
“We believe the key to meeting any supply challenges can be found in flexibility and agility, whether that’s having options in terms of the locations that are available to your company or a variety of types of freight that can alter as economic and routing changes occur,” he said.
“Having a partner that knows your business and has a plan to navigate uncertainty in your supply chain builds resilience and trust.”
Strategic adjustments
For international businesses, success in India’s growing market hinges on strategic flexibility.
“To capitalise on India’s growing market, international businesses should enhance collaboration with local partners and build flexible, multimodal logistics strategies—integrating sea, air, and land transport,” he explained.
“Prioritising the adoption of digital logistics platforms for better visibility and control is crucial. From a risk management perspective, positioning India as a strategic partner in a diversified sourcing and production network is highly recommended.”
While interest in India spans several sectors, certain industries are seeing particularly strong momentum.
“Currently, sectors such as sustainable technology, advanced manufacturing, digital infrastructure, and healthcare solutions are experiencing notable investment and trade growth,” Shanmugam said.
The next phase of India’s growth, according to Shanmugam, will not only deepen its logistics and manufacturing capabilities but also its role in global innovation.”
