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Manufacturing leap: India should shift from low-cost to innovation; Accel report outlines decade's big opportunity
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India's manufacturing industry has a 'rare opportunity to leapfrog global incumbents' by moving away from its low-cost production image and embracing innovation-led growth, according to Accel's Advanced Manufacturing Report 2025, released on Thursday.
As per news agency PTI, the global venture capital firm identified precision engineering, aerospace, EV components, semiconductors, robotics, and advanced materials as sectors where India could take a leading role, if the right mix of policy support, funding and skilled talent is achieved.
The report was launched during Accel's Advanced Manufacturing Summit in New Delhi, which brought together policymakers, business founders, and investors to discuss the country's industrial future.
Prashanth Prakash, partner at Accel, called it 'India's once-in-a-generation window' to lead in advanced manufacturing. 'This is not just about scale, it's about sovereignty,' he said, stressing the need to merge policy momentum, deep-tech expertise, patient investment, and world-class skills.
The findings indicate that competing purely on low-cost labour is no longer sustainable. Instead, future success will rely on producing complex, high-precision products backed by strong intellectual property.
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The report notes that global supply chain shifts, rapid technological changes, and favourable geopolitical conditions are reshaping India's manufacturing prospects.
Domestic initiatives, including production-linked incentive (PLI) schemes and fresh R&D incentives, have created what Accel describes as 'the most favourable macro-environment in decades.'
However, execution remains a major hurdle. 'Policy tailwinds are necessary but not sufficient,' said Prayank Swaroop, another partner at Accel.
He urged Indian founders to adopt a global mindset from the start in terms of product quality, supply chain design, and technology use, adding that 'precision engineering is not a niche anymore — it's the new growth engine.'
The report also emphasises the need for risk-tolerant funding to support hardware development, IP creation, and the long product cycles characteristic of advanced manufacturing. It calls for urgent upskilling in areas such as AI-driven design, robotics, additive manufacturing, and IoT-enabled automation.
'Technology adoption will be the ultimate differentiator,' it states, listing AI, automation, advanced simulation, and IoT as essential infrastructure. Prakash concluded, 'If India wants to define its place in the global industrial order, this is the decade to do it… The question is no longer if we can, but whether we will seize the opportunity with the urgency it demands.'
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