India is preparing to enter the next phase of its manufacturing strategy with the proposed rollout of Production-Linked Incentive (PLI) 2.0 schemes, particularly focused on strengthening its position in global electronics manufacturing.

This move signals a shift from initial capacity-building efforts toward scale, competitiveness and deeper integration into global value chains. For global investors, Economic Development Boards (EDBs) and Investment Promotion Agencies (IPAs), PLI 2.0 represents a significant development in India’s industrial policy landscape.

From Incentives to Scale

The first phase of PLI schemes successfully attracted major investments into sectors such as mobile manufacturing and electronics assembly. India has already emerged as a key production base for global smartphone manufacturers, with increasing export volumes.

PLI 2.0 aims to build on this foundation by addressing the next level of challenges moving beyond assembly to higher-value manufacturing and component ecosystems.

The focus is expected to include:

• Deepening domestic value addition
• Expanding component manufacturing
• Strengthening supply chain resilience
• Enhancing export competitiveness

This reflects a clear policy intent to transition from “Make in India” to “Make for the World.”

Strengthening India’s Role in Global Supply Chains

Global electronics supply chains are undergoing structural shifts, driven by geopolitical factors and the need for diversification. Companies are actively seeking alternative manufacturing destinations that can offer both scale and stability.

India’s PLI 2.0 framework aligns with this shift by creating a more attractive environment for global firms looking to expand their manufacturing footprint.

Key advantages include:

• Large domestic demand supporting production scale
• Policy-backed incentives improving cost competitiveness
• Growing ecosystem of suppliers and ancillary industries
• Increasing export orientation

As a result, India is positioning itself not just as an alternative, but as a strategic manufacturing hub.

Opportunities Across the Electronics Value Chain

PLI 2.0 is expected to unlock opportunities across multiple segments within the electronics sector.

These include:

• Semiconductor components and packaging
• Display technologies
• Battery systems and storage solutions
• Telecom and networking equipment

Importantly, the focus on component manufacturing is critical. Reducing dependence on imports will strengthen domestic supply chains and improve long-term sustainability.

For investors, this creates opportunities not only in final product manufacturing but also in upstream and supporting industries.

Execution Will Be Key

While the policy direction is clear, successful implementation will remain crucial. Investors will continue to evaluate:

• Infrastructure readiness across states
• Availability of skilled workforce
• Ease of regulatory approvals
• Logistics and export efficiency

States that align quickly with PLI 2.0 objectives are likely to attract a significant share of investment.

The IAC Perspective

At the International Advisory Council, we see PLI 2.0 as a natural progression in India’s manufacturing strategy. The shift toward deeper value creation and ecosystem development reflects a more mature and strategic approach to industrial growth.

For global investors, the opportunity lies in engaging early with this next phase particularly in high-value segments of the electronics supply chain.

As global manufacturing continues to rebalance, India’s ability to combine policy support, market scale and ecosystem development will play a defining role in shaping its position in the global electronics industry.

India’s PLI 2.0 Push: What It Means for Global Electronics Manufacturing Investment

India is preparing to enter the next phase of its manufacturing strategy with the proposed rollout of Production-Linked Incentive (PLI) 2.0 schemes, particularly focused on strengthening its position in global electronics manufacturing.

This move signals a shift from initial capacity-building efforts toward scale, competitiveness and deeper integration into global value chains. For global investors, Economic Development Boards (EDBs) and Investment Promotion Agencies (IPAs), PLI 2.0 represents a significant development in India’s industrial policy landscape.

From Incentives to Scale

The first phase of PLI schemes successfully attracted major investments into sectors such as mobile manufacturing and electronics assembly. India has already emerged as a key production base for global smartphone manufacturers, with increasing export volumes.

PLI 2.0 aims to build on this foundation by addressing the next level of challenges moving beyond assembly to higher-value manufacturing and component ecosystems.

The focus is expected to include:

• Deepening domestic value addition
• Expanding component manufacturing
• Strengthening supply chain resilience
• Enhancing export competitiveness

This reflects a clear policy intent to transition from “Make in India” to “Make for the World.”

Strengthening India’s Role in Global Supply Chains

Global electronics supply chains are undergoing structural shifts, driven by geopolitical factors and the need for diversification. Companies are actively seeking alternative manufacturing destinations that can offer both scale and stability.

India’s PLI 2.0 framework aligns with this shift by creating a more attractive environment for global firms looking to expand their manufacturing footprint.

Key advantages include:

• Large domestic demand supporting production scale
• Policy-backed incentives improving cost competitiveness
• Growing ecosystem of suppliers and ancillary industries
• Increasing export orientation

As a result, India is positioning itself not just as an alternative, but as a strategic manufacturing hub.

Opportunities Across the Electronics Value Chain

PLI 2.0 is expected to unlock opportunities across multiple segments within the electronics sector.

These include:

• Semiconductor components and packaging
• Display technologies
• Battery systems and storage solutions
• Telecom and networking equipment

Importantly, the focus on component manufacturing is critical. Reducing dependence on imports will strengthen domestic supply chains and improve long-term sustainability.

For investors, this creates opportunities not only in final product manufacturing but also in upstream and supporting industries.

Execution Will Be Key

While the policy direction is clear, successful implementation will remain crucial. Investors will continue to evaluate:

• Infrastructure readiness across states
• Availability of skilled workforce
• Ease of regulatory approvals
• Logistics and export efficiency

States that align quickly with PLI 2.0 objectives are likely to attract a significant share of investment.

The IAC Perspective

At the International Advisory Council, we see PLI 2.0 as a natural progression in India’s manufacturing strategy. The shift toward deeper value creation and ecosystem development reflects a more mature and strategic approach to industrial growth.

For global investors, the opportunity lies in engaging early with this next phase particularly in high-value segments of the electronics supply chain.

As global manufacturing continues to rebalance, India’s ability to combine policy support, market scale and ecosystem development will play a defining role in shaping its position in the global electronics industry.

India is entering a new phase in its manufacturing journey, marked by the rapid development of industrial parks and a strong push toward semiconductor investments. These recent developments signal a clear shift from incremental growth to large-scale, ecosystem-driven industrial expansion.

For global investors, Economic Development Boards (EDBs), and Investment Promotion Agencies (IPAs), this evolution highlights India’s growing ambition to position itself as a central player in global manufacturing and technology value chains.

A New Phase of Industrial Infrastructure Development

The approval of multiple industrial parks across India reflects a deliberate strategy to strengthen manufacturing capabilities at scale. These parks are being designed as integrated ecosystems, offering plug-and-play infrastructure, improved connectivity, and streamlined regulatory processes.

The objective is not only to attract investment but also to reduce execution timelines — a critical factor for global companies evaluating new markets. By clustering industries within dedicated zones, India is creating environments where supply chains, logistics, and workforce availability are aligned.

State governments are playing an active role in this transformation. Several regions are competing to attract sector-specific investments, particularly in pharmaceuticals, electronics, and advanced manufacturing. This decentralised approach is expanding India’s industrial footprint beyond traditional hubs.

Semiconductor Push Signals Strategic Intent

Alongside industrial parks, India’s semiconductor strategy is gaining momentum. With increasing approvals for semiconductor fabrication, assembly, and packaging facilities, the country is taking concrete steps toward building domestic capabilities in a critical global industry.

This push is particularly significant in the context of global supply chain realignment. Semiconductor shortages in recent years have highlighted the risks of concentrated production, prompting countries to diversify their sourcing strategies.

India’s entry into this space is supported by policy incentives, international collaborations, and growing investor interest. The development of semiconductor clusters is expected to attract ancillary industries, creating a broader ecosystem around electronics manufacturing.

Moving Toward Integrated Manufacturing Ecosystems

What sets this phase apart is the emphasis on integration. India is not just building standalone industrial units; it is developing end-to-end manufacturing ecosystems.

These ecosystems combine:

• Industrial infrastructure
• Supply chain networks
• Skilled workforce availability
• Policy support and incentives

This approach enhances efficiency and scalability, making it easier for companies to establish and expand operations.

For investors, this reduces the complexity traditionally associated with entering emerging markets.

Implications for Global Investment Strategy

The expansion of industrial parks and semiconductor investments has several implications for global stakeholders.

First, India is strengthening its position as a viable alternative in global supply chains, particularly in the context of diversification strategies.

Second, the focus on semiconductors reflects a move toward high-value manufacturing, aligning with global demand for advanced technologies.

Third, improved infrastructure and policy alignment are addressing long-standing concerns around execution and operational efficiency.

However, success will continue to depend on effective implementation at the state level, including land availability, logistics readiness, and regulatory consistency.

The IAC Perspective

At the International Advisory Council, we see these developments as a pivotal moment in India’s industrial evolution. The combination of infrastructure expansion and strategic sector focus is creating a strong foundation for long-term investment.

India’s manufacturing story is no longer defined solely by cost advantages. It is increasingly shaped by capability, scale, and integration.

For global investors, the opportunity lies in aligning with this transformation early — leveraging India not just as a market, but as a key node in global production and innovation networks.

India’s artificial intelligence (AI) ecosystem is entering a decisive growth phase. With increasing policy focus, expanding digital infrastructure and rising global interest, the country is positioning itself as a key destination for AI-driven investment and innovation.

Recent developments indicate that India could attract significant AI-related investments in the coming years, spanning compute infrastructure, data ecosystems and applied AI solutions. For global investors, Economic Development Boards (EDBs) and Investment Promotion Agencies (IPAs), this marks a turning point in how India is perceived not just as a technology services hub, but as an emerging centre for AI development.

From Services to Innovation Leadership

India’s technology sector has traditionally been associated with IT services and outsourcing. However, the current AI push signals a strategic shift toward innovation ownership.

The focus is now on:

• Building domestic AI capabilities
• Expanding compute infrastructure
• Supporting research and development
• Encouraging AI adoption across industries

This transition reflects a broader ambition to move up the global technology value chain.

Key Drivers of AI Investment in India

Several structural factors are contributing to the rapid growth of India’s AI ecosystem.

Talent scale: India continues to produce one of the largest pools of engineers and data scientists globally, providing a strong foundation for AI development.

Digital public infrastructure: Platforms for identity, payments and data exchange enable large-scale AI deployment across sectors.

Growing data ecosystem: India’s expanding digital economy generates vast amounts of data, essential for training AI models.

Policy support: Government initiatives aimed at boosting AI capabilities are creating a more supportive investment environment.

Together, these factors are making India an increasingly attractive destination for AI investment.

Expanding Opportunities Across Sectors

AI investment in India is not limited to technology companies. Multiple sectors are beginning to integrate AI into their operations, creating new opportunities for investors.

Key areas include:

• Healthcare: Diagnostics, predictive analytics and patient management
• Financial services: Fraud detection, credit assessment and digital banking
• Manufacturing: Automation, quality control and supply chain optimisation
• Agriculture: Precision farming and yield forecasting

This cross-sector adoption enhances the scalability of AI solutions and strengthens the overall investment case.

Implications for Global Partnerships

India’s AI growth is also reshaping international collaboration models. Rather than traditional outsourcing relationships, global firms are increasingly exploring co-development and innovation partnerships.

This includes:

• Joint research initiatives
• Establishment of AI labs and R&D centres
• Collaboration with startups and academic institutions

For EDBs and IPAs, this creates new opportunities to attract high-value investments focused on innovation and capability development.

The IAC Perspective

At the International Advisory Council, we see India’s AI surge as a defining moment in the country’s investment journey. The convergence of talent, infrastructure and policy support is creating a strong foundation for long-term growth.

For global stakeholders, the opportunity lies not just in accessing India’s market, but in participating in its innovation ecosystem.

As the global AI landscape continues to evolve, India is steadily positioning itself as a key partner in shaping the future of technology.

India’s talent pool remains one of its most significant competitive advantages. With a large and growing workforce, particularly in technology and engineering, the country continues to attract global investment.

The availability of skilled professionals enables companies to build large teams quickly and efficiently. This is particularly important for sectors such as IT, engineering, research and digital services.

Education and skill development initiatives are further strengthening this advantage. Increasing focus on advanced technologies such as AI, data science and cybersecurity is preparing the workforce for future demands.

India’s demographic profile also supports long-term growth. A young population ensures a steady supply of talent for years to come.

For global companies, access to talent is often a primary factor in investment decisions. India’s ability to provide both scale and quality makes it a preferred destination.

However, competition for top talent is increasing and companies must invest in training and retention strategies.

At the International Advisory Council, we see talent as the foundation of India’s investment appeal. It is not just a supporting factor it is a strategic asset driving long-term growth.

India’s urbanisation is accelerating, reshaping the country’s economic landscape and creating new investment opportunities. As cities expand and new urban centres emerge, demand for infrastructure, services and housing continues to rise.

This shift is not limited to major metropolitan areas. Tier-2 and tier-3 cities are increasingly becoming important growth hubs, driven by improved connectivity and digital access.

Urbanisation is creating opportunities across multiple sectors:

• Real estate and housing
• Transportation and mobility
• Utilities and infrastructure
• Retail and consumer services

Government initiatives aimed at smart cities and urban development are further supporting this growth.

For investors, emerging cities offer lower costs and untapped potential compared to traditional hubs. However, they also require careful evaluation of infrastructure readiness and policy support.

The decentralisation of economic activity is helping distribute growth more evenly across the country.

At the IAC, we view urbanisation as a long-term structural driver of investment in India, creating new corridors for both domestic and international capital.

India’s financial sector is evolving rapidly, playing a crucial role in supporting economic growth and investment activity. Reforms in banking, capital markets and financial services are strengthening the overall ecosystem.

One of the key developments is increased financial inclusion. Digital banking, fintech innovations and government initiatives have expanded access to financial services across the country.

Capital markets have also matured significantly. Improved regulatory frameworks and increased participation from domestic and foreign investors are enhancing liquidity and market depth.

The recent move to liberalise sectors such as insurance further signals India’s openness to foreign capital. These reforms are expected to attract long-term investment into financial services.

For investors, a strong financial system provides confidence in capital allocation, risk management and exit opportunities.

Fintech is another area of rapid growth. India’s digital infrastructure has enabled the rise of innovative financial solutions, attracting both venture capital and strategic investments.

At the International Advisory Council, we see the financial sector as a key pillar of India’s investment ecosystem, supporting both domestic growth and international capital flows.

India’s transition toward renewable energy is creating one of the largest investment opportunities globally. With ambitious targets for solar, wind and green hydrogen, the country is positioning itself as a key player in the global energy transition.

The scale of opportunity is substantial. India’s growing energy demand, combined with climate commitments, requires significant investment in generation, storage and transmission infrastructure.

Solar and wind energy continue to attract strong investor interest due to falling costs and supportive policy frameworks. At the same time, emerging segments such as green hydrogen and battery storage are opening new avenues for capital deployment.

Government incentives and regulatory support are encouraging both domestic and foreign investment. Long-term power purchase agreements and policy clarity are helping reduce risk for investors.

For global energy companies and infrastructure funds, India offers a combination of scale, policy support and long-term growth visibility.

However, challenges such as land acquisition, grid integration and financing structures require careful planning.

From the IAC perspective, India’s renewable energy sector represents a strategic opportunity for investors seeking long-duration, sustainable returns aligned with global climate goals.

India’s logistics sector is undergoing a significant transformation, emerging as a critical enabler of the country’s investment attractiveness. Historically, logistics inefficiencies have been a constraint for businesses operating in India. However, recent infrastructure upgrades and policy reforms are changing this narrative.

The government’s focus on multimodal logistics, including highways, rail corridors, ports and inland waterways, is improving connectivity across regions. Initiatives such as dedicated freight corridors and logistics parks are reducing transit times and lowering costs for businesses.

Digitalisation is also playing a key role. Technology-driven solutions are improving supply chain visibility, enabling better inventory management and enhancing overall efficiency. This is particularly important for sectors such as manufacturing, e-commerce and retail.

For global investors, improved logistics directly impacts operational viability. Faster movement of goods, reduced bottlenecks and predictable delivery timelines contribute to better business outcomes.

State governments are also investing in logistics infrastructure, further strengthening regional ecosystems. This decentralised approach is creating new opportunities beyond traditional industrial hubs.

At the International Advisory Council, we see logistics transformation as a foundational driver of India’s next phase of investment growth. As efficiency improves, India’s competitiveness as a manufacturing and distribution hub will continue to strengthen.

India is increasingly emerging as a preferred destination for multinational companies looking to expand their global operations. Beyond its large domestic market, the country is now being viewed as a strategic base for capability development, innovation and operational scaling.

One of the key drivers of this shift is India’s deep and diverse talent pool. With a steady pipeline of engineers, data scientists and business professionals, companies are able to build large, high-quality teams in relatively short timeframes. This scalability is critical for global firms seeking to consolidate functions and improve operational efficiency.

In addition, India’s digital infrastructure has matured significantly. From cloud adoption to enterprise digitisation, the ecosystem now supports advanced operations across sectors such as financial services, healthcare and manufacturing. This enables companies to move beyond basic outsourcing toward higher-value activities.

Another important factor is cost-to-value optimisation. While India continues to offer cost advantages, the real benefit lies in the combination of affordability and capability. Companies are able to achieve both efficiency and innovation, making India an attractive long-term investment destination.

Government policy has also played a supportive role. Initiatives aimed at improving ease of doing business, along with sector-specific incentives, are helping create a more predictable investment environment.

At the International Advisory Council, we see this trend as part of a broader shift in global business strategy. India is no longer just an extension of operations — it is becoming a central hub for capability development and global value creation.

India’s growing outbound investment footprint is reshaping the global investment promotion landscape. As Indian companies expand across sectors such as technology, manufacturing, healthcare and energy, Investment Promotion Agencies (IPAs) and Economic Development Boards (EDBs) are increasingly competing to attract this capital.

However, the nature of this competition is evolving. Traditional investment promotion strategies built around generic outreach and incentive-led messaging are no longer sufficient. In 2026, attracting Indian capital requires a more targeted, relationship-driven and execution-focused approach.

The Rise of the Indian Outbound Investor

Indian companies today are more global in their outlook than ever before. Driven by market diversification, access to technology and supply chain integration, firms are actively exploring expansion opportunities across Asia, Europe, the Middle East and Africa.

Unlike earlier waves, Indian outbound investors are now:

• More sector-focused
• Data-driven in decision-making
• Long-term oriented in capital deployment
• Increasingly interested in strategic partnerships

This shift requires IPAs to move beyond awareness-building toward deeper engagement models.

From Promotion to Precision Targeting

One of the most significant changes in investment promotion is the move toward precision targeting. Indian companies expect tailored value propositions aligned with their sector, scale and strategic priorities.

Leading IPAs are responding by:

• Developing sector-specific investment narratives
• Identifying high-potential companies through data analytics
• Offering customised market-entry insights
• Aligning outreach with company-specific expansion timelines

This targeted approach significantly improves conversion rates compared to broad-based promotion.

Building Strong In-Country Engagement

Sustained in-country presence is becoming a critical differentiator. IPAs that maintain active engagement within India through representatives, partnerships, or advisory platforms are better positioned to build long-term relationships with investors.

Effective in-country engagement enables:

• Early-stage relationship building
• Continuous investor tracking
• Faster response to investor queries
• Stronger credibility in competitive scenarios

In many cases, the ability to stay consistently visible in the market directly influences investment decisions.

The Importance of Aftercare and Expansion Support

Attracting an initial investment is only the first step. Indian companies place high value on post-investment support, particularly in navigating early-stage operational challenges.

IPAs that offer strong aftercare benefit from:

• Higher reinvestment rates
• Expansion of existing projects
• Positive investor referrals
• Development of sectoral clusters

This lifecycle approach transforms one-time investments into long-term economic partnerships.

Competing on Ecosystem Strength, Not Just Incentives

While incentives remain relevant, they are no longer the primary differentiator. Indian investors increasingly prioritise:

• Ease of doing business and regulatory clarity
• Availability of skilled talent
• Infrastructure readiness
• Market access and connectivity

Destinations that can demonstrate a strong, integrated ecosystem are more likely to attract sustained capital flows.

The IAC Perspective

At the International Advisory Council, we see investment promotion entering a more sophisticated phase. As Indian outbound investment continues to grow, IPAs must evolve from promotional agencies into strategic partners in the investment journey.

The future of investment promotion will be defined by precision, proximity and partnership. Agencies that adopt this model will be best positioned to compete for Indian capital in an increasingly dynamic global landscape.

The Future of Investment Promotion: How IPAs Must Adapt to Compete for Indian Capital

India’s growing outbound investment footprint is reshaping the global investment promotion landscape. As Indian companies expand across sectors such as technology, manufacturing, healthcare and energy, Investment Promotion Agencies (IPAs) and Economic Development Boards (EDBs) are increasingly competing to attract this capital.

However, the nature of this competition is evolving. Traditional investment promotion strategies — built around generic outreach and incentive-led messaging — are no longer sufficient. In 2026, attracting Indian capital requires a more targeted, relationship-driven and execution-focused approach.

The Rise of the Indian Outbound Investor

Indian companies today are more global in their outlook than ever before. Driven by market diversification, access to technology and supply chain integration, firms are actively exploring expansion opportunities across Asia, Europe, the Middle East and Africa.

Unlike earlier waves, Indian outbound investors are now:

• More sector-focused
• Data-driven in decision-making
• Long-term oriented in capital deployment
• Increasingly interested in strategic partnerships

This shift requires IPAs to move beyond awareness-building toward deeper engagement models.

From Promotion to Precision Targeting

One of the most significant changes in investment promotion is the move toward precision targeting. Indian companies expect tailored value propositions aligned with their sector, scale and strategic priorities.

Leading IPAs are responding by:

• Developing sector-specific investment narratives
• Identifying high-potential companies through data analytics
• Offering customised market-entry insights
• Aligning outreach with company-specific expansion timelines

This targeted approach significantly improves conversion rates compared to broad-based promotion.

Building Strong In-Country Engagement

Sustained in-country presence is becoming a critical differentiator. IPAs that maintain active engagement within India through representatives, partnerships, or advisory platforms are better positioned to build long-term relationships with investors.

Effective in-country engagement enables:

• Early-stage relationship building
• Continuous investor tracking
• Faster response to investor queries
• Stronger credibility in competitive scenarios

In many cases, the ability to stay consistently visible in the market directly influences investment decisions.

The Importance of Aftercare and Expansion Support

Attracting an initial investment is only the first step. Indian companies place high value on post-investment support, particularly in navigating early-stage operational challenges.

IPAs that offer strong aftercare benefit from:

• Higher reinvestment rates
• Expansion of existing projects
• Positive investor referrals
• Development of sectoral clusters

This lifecycle approach transforms one-time investments into long-term economic partnerships.

Competing on Ecosystem Strength, Not Just Incentives

While incentives remain relevant, they are no longer the primary differentiator. Indian investors increasingly prioritise:

• Ease of doing business and regulatory clarity
• Availability of skilled talent
• Infrastructure readiness
• Market access and connectivity

Destinations that can demonstrate a strong, integrated ecosystem are more likely to attract sustained capital flows.

The IAC Perspective

At the International Advisory Council, we see investment promotion entering a more sophisticated phase. As Indian outbound investment continues to grow, IPAs must evolve from promotional agencies into strategic partners in the investment journey.

The future of investment promotion will be defined by precision, proximity and partnership. Agencies that adopt this model will be best positioned to compete for Indian capital in an increasingly dynamic global landscape.