<ol><li>CAGR of 15%–18% ~$55 billion</li><li>electric vehicles (EVs): CAGR of 37%.</li><li>low-cost manufacturing</li><li>Strong supplier</li><li>key market Penetration like AFR and LATAM </li><li>$3.5 billion outlay for clean energy </li></ol>

Automotive

<ol><li>China Covid Lockdown </li><li>China Geo-political Risk </li><li>ESHA :: lesser polluting industries in .in</li></ol>

Supply chain diversification: 

<ol><li>PLI outlay of $47.8 billion </li><li class="ql-indent-1"> 	 13 key sectors, resulting in an overall increase in exports. </li><li>fresh infusion of investment of nearly $50 billion, with a production increase of about $500 billion in the next five years.</li><li>electronics, pharmaceutical, automotive, advanced chemistry cell (ACC) battery, solar, and white goods (home appliance) sectors, </li></ol>

Government-led initiatives: 

Sectors to watch out for : Key investment opportunities would emerge here

<ul><li>supply chain diversification</li><li>Sectoral Advantages </li><li>Government initiatives</li><li>CAPEX infusion into manufacturing</li><li>M&A activity</li><li>PE/VC led investment in manufacturing.</li></ul>

six megatrends driving Indian Exports 

<ol><li>Chemicals</li><li>Pharmaceuticals</li><li>Electronics</li><li>Automotive</li><li>Industrial machinery</li><li>textiles</li></ol>

key Sectors 

<ul><li>India : sixth-largest economy</li><li>3.1% of the GDP</li><li>1.6% only of global trade</li></ul>

Lot of Room for growth 

Top 15 export categories accounted for over 72% of total export

<ol><li> $108 billion in M&A deals in India in 2021</li><li> Scope acquisitions outside companies’ core operations == 4/10 </li><li> First-time buyers == 80%</li><li>15.7% == manufacturing sector</li><li>Cross-border M&A == 3X in 4Y to 2021 </li></ol>

M&As

<ol><li>Contract Research and Manufacturing Services (CRAMS)</li><li>Contract Development & Manufacturing Organisations (CDMO) </li><li>operations globally</li><li>rising cost competitiveness of India.</li></ol>

Future OF Manufacturing Business 

<ol><li>CAGR of 16%–18% = ~$50 billion</li><li>low cost of manufacturing (30%–35% lower than in the US and Europe), </li><li>cost-efficient R&D (about 87% less than in developed markets), </li><li>cheap skilled labour.</li></ol>

pharma

<ol><li>CAGR of 18%–20% ~$75 billion</li><li>demand from developing markets</li><li>low cost + PLIs</li><li>100% FDI</li><li>higher M&A activities.</li></ol>

Industrial machinery

<ol><li>CAGR 13%–16% ~$110 billion</li><li>Complete value chain</li><li>Competitive cost </li><li>PLI scheme ~$1.42 billion</li><li>Preferential market access to 43 countries under 15 trade agreements</li></ol>

Textile and apparel

<ol><li>CAGR of 35%–40% ~$145 billion</li><li>strong manufacturing technology </li><li>R&D capabilities </li><li>end-to-end supply chain improvement.</li><li>Mobile phone exports = 5X+5Y </li></ol>

Electronics

<ol><li>FDI investments increased by about 65% between 2015 and 2020</li><li>Free-trade agreements (FTAs)</li><li>India-UAE Comprehensive Partnership Agreement (CEPA)</li><li>India-Australia Economic Cooperation and Trade Agreement (IndAus ECTA)</li></ol>

Investments : FDI 

$418 billion Exports in  FY2022 40% growth over FY2021

Bain Report:  1 trillion India Manufacturing Exports in 2028 

<ol><li>Define Clear roadmap : products, geographies, and customers</li><li>operations models: Direct; Partners; Acquisition </li><li>Supply Chain Robustness </li><li>business planning: Cash flow & Risk Models </li><li>skills : Legal; Internation Relations; Tech - IPR </li></ol>

Imperatives for export acceleration for companies

<ol><li>India’s cost advantage</li><li>Strong supplier base</li><li>R&D capabilities</li><li>Samsung, Wistron, and Foxconn </li></ol>

Sectoral advantages: 

35% year-over-year (YOY)  FY23 ~ $100 billion 6X More Capex in 5Y

 Capex-led growth:

$70 billion in 202155% UP since 2019Buoyancy in Manufacturing Focus : Pharma + Chemicals

PE/VC-led investments:

India growth story in manufacturing would provide a feeder for investment ; research into these reports would be a good start towards stock  ideas 

Propelled by growth in priority sectors and driven by favourable megatrends, India’s manufacturing sector has opened itself into new geographies and segments.

Lot of Room for growth

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