India’s manufacturing PMI rose to 57.5 in October, up from 56.5 in September. Meanwhile, the services PMI increased to 58.5 in October, compared to 57.7 in September. The Industrial Production Index grew 3.1% in September year-over-year, bouncing back from a contraction of 0.1% in August. Capacity utilization improved to 75.8% in the third quarter of 2024, up from 74% in the second quarter.
In a significant achievement, India’s smartphone exports reached a historic milestone, exceeding $2 billion in October 2024, marking the highest monthly total ever recorded. In the first seven months of the fiscal year, smartphone exports surpassed $10.6 billion, reflecting a 37% year-over-year increase from $7.8 billion. This surge is primarily driven by Apple iPhones, which registered a 23% increase. Foxconn contributed about one-third of the $10.6 billion in exports, while Tata Electronics experienced an impressive 115% year-over-year growth. Apple and its suppliers aim to assemble 32% of the global iPhone production volume and 26% of its value in India by the 2026-27 fiscal year, potentially yielding a production value exceeding $35 billion.
The automobile industry also enjoyed a boost in sales during October, mainly due to the country’s festival season. The car segment reported the highest-ever domestic sales for October, reaching 398,328 units, which represents a modest 0.9% increase compared to October 2023. The two-wheeler segment experienced robust growth of 14.2% year over year.
Tata Advanced Systems Limited (TASL) inaugurated its facility in Vadodara, Gujarat, to manufacture Airbus’ C-295 transport aircraft. This facility is the country’s first private-sector final assembly line dedicated to military aircraft. In 2021, the Indian Ministry of Defense signed a $3 billion contract with Airbus Defense Spain to supply 56 C-295 transport aircraft. Of these, 16 aircraft will be delivered fully assembled from Spain, while the remaining 40 will be assembled at the TASL facility in India. The first locally produced aircraft is expected to be ready by September 2026, with all 40 units scheduled for delivery by August 2031.
India's medical device industry is a rapidly growing sector with the potential to expand more than fourfold in the next five to six years. Currently, the market is growing at a compound annual growth rate (CAGR) of around 15%, valued at approximately $13 billion, and projected to exceed $50 billion by 2030. In response to this growth, the government recently established a $60 million medtech program to support local producers of medical equipment in resuming production and shifting toward exports. The key product categories of domestic medical equipment manufacturers include diagnostic imaging, consumables, patient aids, dental products, and orthopedic implants.
A few recently announced projects and investment news items are listed below for your reference.
Allison Transmission is investing around $100 million to double its manufacturing facility in Chennai to meet the rising global demand for its on-highway transmission products.
Bridgestone is investing $85 million to expand its premium tire production capacity at its plants in Pune and Indore.
JSW Group is negotiating with Haier to form a joint venture in the white goods industry. The new company plans to invest over $125 million to set up manufacturing facilities in India.
Azad Engineering has signed a significant long-term contract with Japan-based Mitsubishi Heavy Industries (MHI) for the supply of highly engineered and complex rotating and stationary airfoils for advanced gas and thermal power turbine engines. Recently, the company also partnered with Honeywell Aerospace ISC in the United States for the manufacturing and supply of complex components for the aviation industry.
Hindustan Zinc plans to invest around $2 billion to double its present production capacity. Hindustan Zinc is presently the world’s second-largest integrated zinc producer and third-largest silver producer.
Hindalco Industries will invest over $4 billion over the next three years to expand its aluminum and copper production capacities. The expansion will include the establishment of a new aluminum smelter, alumina refinery, copper smelter, and a copper recycling plant.
Inteva Products is expanding its manufacturing capacity at its Pune-based plant. The expansion will increase plant production capacity by 70%. The additional capacity will house new production lines for key automotive components such as window regulators, latches, and window regulator motor assemblies. The facility already manufactures crucial components like side door latches, liftgate latches, windows regulators, and motors for major Indian automakers, including Mahindra and Tata Motors.
Flender India, a subsidiary of Germany-based Flender Group, is investing to expand its production capacity of wind turbine gearboxes to meet the demands of both local and international markets. Over 50% of the company's products are exported from India. The company has three established production sites in Kharagpur, Chennai, and Walajabad in Tamil Nadu.
For more information, please contact Arun Mahajan at AMahajan@AMTonline.org.
