India’s manufacturing PMI for December 2024 stood at 56.4, slightly down from November's 56.5. Its services PMI increased to 59.3 in December, up from November’s 58.4. The Industrial Production Index recorded a year-over-year growth of 5.2% in November 2024, marking the highest growth rate in a six-month period, compared to a 3.5% rise in October. According to the IMF, the Indian economy is projected to grow by 6.4% in 2025, supported by strong private consumption, investments, infrastructure spending, and anticipated increases in exports of services and goods.
In 2024, India achieved a significant milestone in renewable energy, with its installed capacity surpassing 205 GW. Annual additions are expected to quadruple by 2030, with a target of reaching 500 GW of RE capacity. An annual addition of 50 GW would require around $32 billion in investments. In 2024, India saw an addition of approximately 24.72 GW in RE capacity, primarily driven by solar and wind energy. Additionally, beginning in June 2026, India will mandate the use of domestically produced solar cells in clean energy projects. This policy aims to reduce reliance on imports and support India’s goal of increasing non-fossil fuel capacity to 500 GW by 2030.
Electronics exports from India rose to $22.5 billion in the first eight months (April to November) of fiscal year 2024-25, marking a nearly 28% increase from $17.66 billion year over year. This growth propelled exports from the electronics sector to third place, behind only engineering goods and petroleum. The increase is attributed to smartphone Production-Linked Incentive schemes, which boosted smartphone export value to $13.1 billion – a 45% rise from the previous fiscal year. Smartphones now account for 58% of total electronics exports, with the share expected to reach around 60-65% by the end of the current fiscal year.
According to the Automotive Component Manufacturers Association, steady vehicle sales and exports led to an 11.3% growth in the first half of fiscal year 2024-25, resulting in an overall turnover of $39.6 billion for the auto component industry. Sales to original equipment manufacturers (OEMs) grew by 11.2% to $33.8 billion; aftermarket sales increased by 5% to $5.7 billion; exports rose by 7% to $11.1 billion; and imports grew by 4% to $11 billion.
The Society of Indian Automobile Manufacturers reported that domestic passenger vehicle sales increased by 4.2% to a record 4.27 million vehicles in calendar year 2024 compared to 2023. Commercial vehicle sales decreased by 2.7%, totaling 0.95 million, while two-wheeler sales grew by 14.5% to 19.54 million vehicles.
Southeast Asia’s largest machine tool show, IMTEX – Metal Cutting, will take place in Bengaluru, India. This seven-day event will run from Jan. 23-29, 2025. It will be the largest show to date, covering a total area of 70,000 square meters across eight halls. In addition to machine tool displays, the show will focus on tooling and digital manufacturing, encompassing automation, robotics, cobots, IoT systems, additive manufacturing, AI, big data, and various other transformative technologies. About 1,300 companies, both local and international, are expected to exhibit at the event, which is anticipated to attract around 100,000 attendees. There are around 80 AMT members participating in the show, either directly or through their agents. AMT and 11 of its member companies will showcase their offerings in the USA pavilion, located in front of Hall 1B at the Bangalore International Exhibition Centre.
A few recently announced projects and investment news items are listed below for your reference.
Taiwan-based Micro-Star International has partnered with Syrma SGS to manufacture laptops in India. Syrma SGS is an IT hardware manufacturer approved under the Production-Linked Incentive (PLI) scheme. The company will utilize technology transfer and best practices from MSI to establish the production line at its facility in Chennai.
Jupiter International plans to invest approximately $800 million over the next three years to expand its facilities for the manufacturing of photovoltaic solar cells and solar power modules. The new plant will have capacities of 3 GW for wafers, 9.4 GW for cells, and 6 GW for module manufacturing.
Happy Forging Limited (HFL), based in Ludhiana, is establishing a new manufacturing facility specifically designed for heavy industrial components. This facility will be the first of its kind in Asia and the second largest in the world. The plant will have the capacity to produce components weighing up to 3 tons. HFL specializes in manufacturing heavy forged and machined components, including large crankshafts for industrial and marine applications, as well as axles, gears, and specialized parts for key sectors such as power generation, mining, wind energy, and defense.
ZF and Rane Group have collaborated to launch a full range of advanced electric power steering for automotive demands.
Jupiter Wagons is set to boost its export potential with an investment of around $350 million to set up a new forging plant for wheels and axles in Odisha. The expansion will increase the company’s production capacity from 20,000 to 100,000 forged wheelsets annually.
U.S.-based International Battery Company (IBC) is setting up a lithium-ion gigafactory in Karnataka. The factory will be operational by the fourth quarter of 2025.
For more information, please contact Arun Mahajan at AMahajan@AMTonline.org.
