Boston Consulting Group reports India manufacture reach 25% of GDP by 2047
By Anjali Sharma
WASHINGTON – Boston Consulting Group US think tank and venture capital firm Z47on Thursday reported that India to shift from assembly-led growth to technology-led value creation, targeted a rise in manufacturing’s share of GDP from the current 17% to 25% by 2047.
The report titled “Digitizing Make in India 3.0: Design-Led, Digitally Powered, Made for the World,” the study identifies priority sectors, policy gaps, and actionable pathways to elevate India into a global manufacturing powerhouse.
The report outlined an ambitious blueprint for India’s manufacturing transformation as the country advances toward its Viksit Bharat 2047 goal.
The study highlighted record FDI inflows of Rs 4.22 lakh crore in FY25 and growing government initiatives such as Make in India, Atmanirbhar Bharat, and PLI schemes that are accelerating industrial expansion and innovation adoption.
The report identifies electronics and semiconductors as India’s most urgent manufacturing priority, citing a USD 3 trillion global market foundational to AI, mobility, defence, and telecom.
It said India’s semiconductor demand is expected to grow from USD 33 billion in 2022 to USD 117 billion by 2030.
There is high import dependency and global supply concentration, with 75 per cent of fabrication capacity located in East Asia, it stated.
India has achieved dramatic success in electronics manufacturing 99% of all mobile phones sold in India are now made domestically—capability gaps remain in wafers, displays, chip packaging, and high-value components.
The report called for cluster-based Outsourced Semiconductor Assembly and Test expansion, upstream materials ecosystem development, and stronger domestic IP creation.
The defence spending reaching Rs 6.81 lakh crore, the sector is undergoing rapid modernization. India has reduced arms imports by 9.3 per cent and awarded 92 per cent of FY25 defence contracts to domestic firms.
The report said for the automobile sector the EV adoption has surged, with 2.08 million EVs sold in 2024, and India now accounts for 9 per cent of the world’s EV stock.
“Policy momentum through the Production Linked Incentive Scheme for Automobile and Auto Component Industry (PLI-Auto), Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC), and the new PM E-DRIVE is pushing domestic value-add capabilities.”
The report said that India crossed 50 per cent non-fossil power capacity in 2025, achieving its climate milestone ahead of schedule. With renewable energy additions at record levels, the grid is entering a super-cycle of expansion.
The Pharmaceuticals and Chemicals remain key growth engines, it stated as India continues to dominate global generics, producing 60 per cent of the world’s vaccines.
The Contract Research, Development, and Manufacturing Organisation segment is growing at 2× the global rate, and could scale to USD 22–25 billion by 2035, it concluded.
