Introduction
In the post-pandemic world, global supply chains are being redesigned to prioritize resilience, diversification and geopolitical balance. India has responded with a comprehensive New Industrial Policy, designed to position itself as a key node in global production networks. This policy overhaul focuses on infrastructure, innovation, investment and inclusive growth making India an attractive choice for foreign companies rethinking their global footprint.
At the International Advisory Council (IAC), we work with international investors, EDBs and IPAs to align their India market entry strategies with this evolving policy framework.
What Is the New Industrial Policy?
India’s revised Industrial Policy (2024–2030) aims to:
- Boost manufacturing’s share in GDP to 25%
- Enhance exports and integration into global value chains
- Encourage sustainability and Industry 4.0 adoption
- Promote innovation through R&D and digital infrastructure
- Offer in-country representation India support for smoother foreign investment facilitation
The policy supports sector-specific strategies, incentives and execution mechanisms across key industries.
Key Focus Areas for Global Investors
1. Manufacturing & Value Chain Integration
The policy promotes India as a China + 1 alternative, encouraging global firms to:
- Set up regional manufacturing hubs
- Source components from India
- Participate in India’s expanding industrial corridors
States like Tamil Nadu, Gujarat and Uttar Pradesh are leading with their own aligned industrial policies.
2. Production-Linked Incentive (PLI) Expansion
Building on earlier success, the policy expands PLI schemes to:
- Semiconductors
- Green hydrogen
- Textiles
- Specialty steel
- EVs and batteries
These schemes offer up to 10% incentives on incremental production, encouraging FDI attraction in India.
3. Digital & Green Industry Focus
The policy emphasizes Industry 4.0, AI, IoT and sustainability:
- Tax breaks for green technologies
- ESG-aligned investment zones
- Digitization of manufacturing ecosystems
- Integration with cross-border investment promotion platforms
Strategic Opportunity for Foreign Businesses
Foreign investors can:
- Build assembly and manufacturing units in India for global re-exports
- Integrate Indian suppliers into their global value chains
- Co-invest in R&D, automation and joint ventures with local firms
- Launch innovation programs via academic partnerships India
Companies entering now benefit from first-mover access to policy-linked incentives.
Case Study: ASEAN Auto Component Firm in Uttar Pradesh
An ASEAN-based auto component supplier chose Uttar Pradesh for its expansion. With IAC’s help, the company:
- Leveraged incentives under the state’s auto policy aligned with the national industrial strategy
- Accessed plug-and-play facilities in the Eastern Freight Corridor
- Hired local engineering talent through a joint degree program India
- Partnered with logistics providers for regional re-export
IAC managed policy navigation, India investment facilitation and B2B matchmaking India.
IAC’s Role in Industrial Policy-Based Entry
We assist:
- Investors in identifying sectors aligned with national & state policies
- EDBs and IPAs in promoting their regions in India as sourcing hubs
- Companies in navigating PLI and other incentive mechanisms
- With in-country representation India to monitor implementation and compliance
- In executing PR for international companies in India to align with ESG and government goals
Sectors Gaining Traction
- Electronics & Semiconductors
- Textiles & Technical Apparel
- EVs, Batteries & Green Hydrogen
- Aerospace & Defence
- Food Processing & Cold Chain Logistics
Conclusion
India’s New Industrial Policy is more than a vision it’s an execution-ready roadmap designed for global integration. For companies seeking resilient supply chains, localised production and scalable innovation, India is offering the infrastructure, incentives and investor support needed to thrive.
At IAC, we help global partners convert policy promise into business reality efficiently, strategically and sustainably.