India’s manufacturing goals have a clear focus on the Make in India initiative. Among its many areas, industrial machinery is significant. It not only plays a key role in boosting domestic production but also supports sectors like construction, agriculture, energy, and transportation. As India strives to become a global manufacturing centre, the condition of its machinery ecosystem reflects its overall progress. So what’s working, and what isn’t? What’s Working: Policy Alignment and Capacity Expansion For example, India’s machine tools sector grew at over 10 per cent annually in the last five years, driven by increased demand from the automotive, aerospace, and defence industries. According to the Indian Machine Tool Manufacturers' Association (IMTMA), India is now one of the top ten consumers of machine tools worldwide and is improving its production ranking. Several multinational companies have established local manufacturing operations in India. They do this not only for cost savings but also to meet the rising industrial demand in the country. At the same time, local companies are investing in automation, precision engineering, and research to lessen their reliance on imported subassemblies. Technology Transfer and Localisation Are Gaining Ground The growing availability of local tooling, castings, control panels, and sheet metal fabrication, backed by a strong MSME network, has fortified the machinery value chain. What’s Not Working: Import Dependence and Design Gaps Domestic machinery exports also encounter issues related to standardisation, perceived reliability, and after-sales support. These factors limit global competitiveness, despite cost advantages. Another important problem is the low investment in local design and intellectual property. While assembly and fabrication capabilities are increasing, genuine innovation and proprietary development are still confined to a few regions. Workforce Readiness and Ecosystem Collaboration Need Focus Additionally, the lack of structured collaboration between academia, industry, and government is slowing down innovation. Countries that have built strong machinery industries, like Germany, Japan, and South Korea, have achieved this through the tight integration of policy, research, and industrial planning. The Path Forward: Focused Execution Over Generic Targets Market access and branding support for Indian-made machinery in international markets India has built a solid foundation. The question now is whether it can progress from capacity to capability, ensuring Indian machinery is not only made competitively but also designed intelligently, branded confidently, and exported reliably.
In recent years, the Indian government has introduced specific policies to promote domestic machinery production. Programs like the Production Linked Incentive (PLI) for capital goods, better depreciation benefits, and goals for reducing imports have helped build momentum.
Partnerships with global OEMs have allowed Indian firms to access new technologies in hydraulics, mechatronics, and CNC control systems. This has helped reduce the capability gap in areas like high-precision components and custom machinery.
Despite progress, India still relies on imports for critical machinery parts like ball screws, linear motion guides, high-end PLCs, and advanced semiconductors. This reliance leads to bottlenecks, particularly in sectors that need precision and scale, such as semiconductor fabrication, robotics, and high-speed manufacturing lines.
The machinery sector not only needs skilled workers but also requires deep knowledge in systems integration, precision manufacturing, and mechatronic design. Current workforce development programs, though improving, still do not fully meet the demands of advanced manufacturing ecosystems.
For Make in India in machinery to succeed, the next phase must focus on three priorities: Technology co-development and IP creation through global partnerships and domestic R&D investments, Component-level import substitution, especially for critical electronics and motion systems.
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