For more information, contact Arun Mahajan (AMahajan@AMTonline.org). After an unprecedented GDP contraction in the second quarter, India’s manufacturing sector is coming back with a vengeance. The manufacturing PMI was 56.8 in September, the steepest monthly rise in the last eight years. Other indicators, like railway freight traffic, power consumption, and steel demand are all strong again. Major investments in infrastructure, defense, electric vehicles (EV), and electronics are creating new demand for manufacturing technology. The government has implemented several new policies and programs to encourage domestic manufacturing, further increasing demand. For more intel, read on.
Tesla is in advanced discussions with Karnataka state to set up its R&D center in Bangalore.
State-owned Bharat Heavy Electricals Limited (BHEL) has signed an agreement with Swiss Rapide AG for manufacturing Maglev trains in India.
Tamilnadu state recently announced a new electronics manufacturing policy with the goal of reaching $100 billion in output in the next five years.
The government is setting up the country’s first MedSpark in Kerala state. It will be a medical device industrial park for R&D, manufacturing support, and technology innovation.
The railway ministry announced seven more bullet train corridors under the public-private partnership (PPP) cooperative agreement.
Bangalore-based Dynamatic Technologies secured a contract for supplying tooling for the Boeing- Saab T-7A Red Hawk program.
SAIC Motor Corp. (MG Motors) is investing $146 million to increase capacity in their Gujarat-based plant.
Toyota plans to invest around $275 million to develop their EV range of products in India.
The government announced plans to offer $4.6 billion in incentives to companies setting up advanced battery manufacturing facilities for the EV sector.
United Arab Emirates-based Caracal group is planning to build a plant in India to manufacture CAR816 carbine rifles for the Indian army under the “Make in India” program.
Off-highway tire manufacturer Alliance will invest $165 million to set up their third manufacturing plant in Vizag.
Passenger vehicle and two-wheeler sales posted growths of 20% and 22% respectively in September over the previous month.
Under the recently announced Defense Equipment Indigenized Manufacturing program, the Ministry of Defense awarded a deal worth $370 million for the manufacture of Pinaka multi-barrel rocket launchers for the Indian army. The order is split between two private companies – Larsen & Tubro (L&T) and Tata Aerospace and Defense. The launchers will be mounted on vehicles supplied by state-owned Bharat Earth Movers Ltd. (BEML).
Balkrishna Industries is investing $142 million to set up an off-road radial tire unit with a production capacity of 5000 tons per year at its Bhuj-based factory in Gujarat state.