This report addresses businesses across the European Union, with particular focus on major economies – Germany, France, Italy, Spain, Netherlands, Denmark, Sweden, and Poland. It highlights how companies in these countries can capitalize on manufacturing opportunities in India. Each of these nations has unique synergies with India’s industrial landscape, from Germany’s engineering expertise to Italy’s fashion industry, and the analysis notes several country-specific advantages.

The EU as a whole is India’s largest trading partner, accounting for €124 billion in goods trade in 2024 (EU-India). European investment is deeply rooted in India – approximately 6,000 European companies operate in India, providing about 1.7 million direct and 5 million indirect jobs (Bridging worlds: navigating the promising India-Europe trade corridor | United Kingdom). These include factories, joint ventures, and outsourcing centers spanning diverse sectors. This strong presence underlines the interest and potential for EU businesses of all sizes (from manufacturing multinationals to mid-sized firms) to expand in India.

Country-Specific Angles

Germany: Germany’s industrial firms (especially automotive and engineering) have a long history in India, leveraging India’s skilled engineers and lower production costs. For example, German automakers and suppliers use India as a production base for both the local market and exports, benefiting from cost advantages of up to ~30% vs Europe (‘Manufacturing cost competitiveness against Europe may drop’ | Delhi News – Times of India). German companies also tap into India’s IT talent for Industry 4.0 solutions.

France: French companies are active in aerospace, defense, and energy manufacturing in India. Airbus (a European consortium including France) is co-producing transport aircraft in India via a Tata joint venture, and French defense firms meet India’s localization requirements. Energy giants like TotalEnergies are investing in Indian renewable projects (Bridging worlds: navigating the promising India-Europe trade corridor | United Kingdom). These efforts let French firms gain market access and cost savings while partnering in India’s growth sectors.

Italy: Italy’s strengths in fashion, automotive, and machinery find complementarity in India’s textiles and auto components industries. Italian fashion brands source leather goods and apparel from India’s skilled textile hubs, taking advantage of India’s raw material availability and lower labor costs. In automotive, Italian-designed cars and bikes (e.g. by the Fiat and Piaggio groups) are manufactured or assembled in India, benefitting from India’s large vendor base and cost-efficient supply chain.

Spain: Spain’s economy sees opportunities in textiles and renewable energy in India. Spanish apparel retailers (notably Inditex’s Zara) rely heavily on Indian garment manufacturers – India, alongside Bangladesh, is one of Zara’s major supplier countries (Zara: Why Zara can’t do without India now! | – The Times of India). In renewable energy, Spanish wind and solar firms (e.g. Siemens Gamesa, with Spanish origins) build components in India’s renewable energy parks. This reduces costs and positions Spanish firms in India’s fast-growing clean energy market.

Netherlands: The Netherlands is one of the largest European investors in India (often as an FDI conduit), and Dutch companies profit from India’s tech and agri-food manufacturing. For instance, Philips (Netherlands) has established a healthcare innovation center in Pune (Bridging worlds: navigating the promising India-Europe trade corridor | United Kingdom), leveraging India for both R&D and device production. Dutch dairy and food processing firms partner with Indian companies to process India’s vast agricultural output, supported by India’s improving cold-chain logistics.

Denmark: Danish firms capitalize on India’s push for sustainability and renewables. Vestas (Denmark) manufactures wind turbine components in India, tapping into local engineering talent and government incentives for clean energy. Denmark’s Green Strategic Partnership with India (launched 2020) fosters collaboration in green technologies and efficient manufacturing. Danish pharmaceutical and maritime companies also use India as a base for cost-effective production (e.g. enzyme producer Novozymes operates its largest enzyme plant in India).

Sweden: Sweden’s opportunities lie in automotive, telecom, and retail manufacturing in India. Volvo produces trucks and buses in India (through local joint ventures) for Asian markets, benefitting from lower production costs and India’s emerging electric vehicle (EV) ecosystem. Telecom giant Ericsson manufactures telecom equipment in India, leveraging India’s status as the world’s second-largest telecom market (Bridging worlds: navigating the promising India-Europe trade corridor | United Kingdom). Additionally, Swedish retailers like H&M source extensively from Indian textile suppliers, combining cost savings with sustainability initiatives in their Indian supply chain.

Poland: For Poland, India offers a complementary manufacturing hub beyond Europe. Polish companies in machinery and chemicals can outsource certain production stages to India’s competitive factories, reducing costs. There is growing collaboration in IT services as well – Polish firms utilize Indian IT outsourcing for software development and support, while Indian IT companies invest in Poland, creating a two-way partnership. As Poland seeks to expand its global value chain presence, India serves as a key partner market for raw materials (such as Indian pharma ingredients for Polish generics) and as a destination for joint manufacturing ventures.

Businesses across Europe – from Germany’s automotive giants to Sweden’s retailers – have much to gain by exploring manufacturing in India. India’s advantages span a vast consumer market, cost efficiencies, improving infrastructure, and pro-investment policies, all of which are detailed by sector and opportunity type below.

Opportunities in India for EU Businesses

India’s diversified industrial base presents sector-specific advantages for European manufacturers. This section breaks down key industries – Automotive; Pharmaceuticals & Healthcare; Textiles & Apparel; Electronics & Technology; Chemicals; Renewable Energy; Food & Agriculture; Engineering & Machinery; Aerospace & Defense; and IT/Outsourcing – highlighting opportunities, EU-India collaborations, and growth potential in each.

Automotive Manufacturing

India is the world’s fourth-largest automotive producer and is poised to become the third-largest by 2030, making it a strategic location for automobile manufacturing (The Trillion-Dollar Manufacturing Exports Opportunity for India | Bain & Company). For European automakers and component suppliers, India offers:

• Cost Advantages: Vehicle production in India can be significantly cheaper. Global companies are increasingly pursuing export-oriented car production in India due to the cost advantage over manufacturing in Western Europe (The Trillion-Dollar Manufacturing Exports Opportunity for India | Bain & Company). Estimates suggest manufacturing a vehicle in India can be 15–30% cheaper than in Europe on average (‘Manufacturing cost competitiveness against Europe may drop’ | Delhi News – Times of India) (The Trillion-Dollar Manufacturing Exports Opportunity for India | Bain & Company), driven by lower labor and tooling costs. European carmakers have taken note: a European manufacturer recently became the first to export fully built EVs from India to overseas markets (Automotive pulse – India ), delivering “Made in India” electric cars abroad as a cost-effective strategy.
• Skilled Vendor Base: India has a mature auto components industry (ranked third largest in the world). German and Italian tier-1 suppliers, for example, have established plants in India to supply both domestic assemblers and global markets. India’s engineering talent and 44%+ cost advantage in engineering-intensive work (‘Manufacturing cost competitiveness against Europe may drop’ | Delhi News – Times of India) benefit production of complex auto parts and systems.
• R&D and EV Ecosystem: India’s push for electric vehicles and smart mobility aligns with European automotive innovation. Several EU firms have set up R&D centers in India to design components and software for global models. India’s EV market is growing rapidly, with supportive policies and a developing supply chain for batteries and motors (Automotive pulse – India ) (Automotive pulse – India ). European auto firms (e.g. Volkswagen, Mercedes-Benz) manufacturing in India can capitalize on PLI incentives for EV and battery production and participate in joint ventures (such as partnerships with Indian battery makers) to further reduce costs and gain local market share.
• Case Example: Mercedes-Benz India now manufactures high-end models locally, making India the first country outside Europe to produce certain luxury models (Automotive pulse – India ). This local manufacturing (including EV assembly) under the “Make in India” initiative has lowered unit costs and allowed Mercedes to export from India. Likewise, Škoda (Volkswagen Group) has turned India into an export hub for specific car models, leveraging India’s lower costs to ship to other emerging markets. These cases show that EU automotive firms can use India as a production base for both domestic sales and export growth, benefiting from economies of scale and India’s improving manufacturing quality standards.

Pharmaceuticals & Healthcare

India is often called the “pharmacy of the world” – it’s a top producer of generic medicines and vaccines. For Europe’s pharmaceutical and medical device companies, partnering with or manufacturing in India provides:

• Low-Cost, High-Quality Production: Pharmaceutical manufacturing costs in India are about 30–35% lower than in the EU or US (The Trillion-Dollar Manufacturing Exports Opportunity for India | Bain & Company) due to cheaper skilled labor, economies of scale in generic drug production, and a robust raw material base. Many European pharma companies (Novartis, Sanofi, GSK, Bayer, to name a few) already operate formulation plants or source APIs (active pharmaceutical ingredients) from India. These cost savings allow higher profit margins and competitive pricing globally (The Trillion-Dollar Manufacturing Exports Opportunity for India | Bain & Company).
• Regulatory Incentives: The Indian government’s Pharma Vision 2047 aims to make India a leader in affordable and innovative medicines (Bridging worlds: navigating the promising India-Europe trade corridor | United Kingdom). Initiatives under this vision include fast-tracking approvals for facilities that meet international Good Manufacturing Practices (GMP) and providing R&D grants for vaccine and biotech development. 100% FDI is allowed in pharma manufacturing, and industry-specific tax breaks are offered for setting up in designated pharma parks.
• Healthcare Devices and Biotech: India’s large pool of engineers and scientists enables high-quality manufacturing of medical devices at lower cost. European medical technology firms can produce everything from diagnostic equipment to implants in India’s emerging Medtech zones. For example, Philips (Netherlands) opened a Healthcare Innovation Center in Pune, India (Bridging worlds: navigating the promising India-Europe trade corridor | United Kingdom) to develop and manufacture diagnostic imaging and life-saving devices. This not only cuts costs but also tailors products to emerging market needs.
• Collaboration & Market Access: Manufacturing in India also opens the door to its huge healthcare market (1.4 billion people). European healthcare companies can partner with Indian firms to produce drugs or vaccines for local distribution under government procurement programs. A notable collaboration was the production of the AstraZeneca-Oxford COVID-19 vaccine by India’s Serum Institute – while AstraZeneca is a UK-Swedish company, this partnership illustrated how EU-India cooperation in pharma can achieve massive scale (over a billion doses) quickly and cost-effectively. Going forward, such models can apply to other vaccines and treatments, with India providing the manufacturing muscle and Europe the advanced R&D.

Textiles & Apparel

The textiles and apparel sector is one of India’s oldest industries and a major export earner. It offers European fashion and retail companies a combination of cost efficiency, skilled craftsmanship, and raw material access that is hard to match. Key benefits for EU businesses include:

• Competitive Manufacturing Costs: India has a clear cost advantage in textiles due to lower wages and locally available raw materials like cotton. Indian textile manufacturing costs are significantly lower – for instance, in apparel production India enjoys a cost advantage thanks to cheap raw cotton and labor (The Trillion-Dollar Manufacturing Exports Opportunity for India | Bain & Company). European brands can often procure garments from India at 20-30% lower FOB cost than sourcing from Eastern Europe or Turkey, while still maintaining quality.
• Scale and Skill: India has large, integrated textile mills and garment factories capable of high-volume orders, as well as specialized artisan clusters for high-quality handlooms, embroidery, and leatherwork. Italian and French luxury houses tap into India’s skilled artisans for intricate embroidery and embellishments, while fast-fashion brands leverage India’s large factories for bulk basics. This flexibility in scale – from handcrafted luxury to mass-market apparel – means EU companies in various market segments can find suitable production partners in India.
• Sustainability and Materials: India is a leading producer of organic cotton and is increasingly emphasizing sustainable manufacturing (e.g., eco-friendly dyes, water recycling in textile parks). European companies with ESG commitments benefit from India’s push towards green textiles. Initiatives like the Better Cotton Initiative and Indian mills adopting renewable energy help EU brands reduce the carbon footprint of their supply chain. For example, several Indian textile exporters now use solar power for their mills and adhere to international labor and environmental standards required by European clients.
• Case Study – Fast Fashion Collaboration: A telling example is Inditex (Zara) and its growing reliance on India. India (along with Bangladesh) is now one of Zara’s major sourcing hubs, supplying a substantial share of its garments (Zara: Why Zara can’t do without India now! | – The Times of India). In 2024, Inditex sharply increased use of air freight from India to Spain to meet in-season demand, underscoring India’s pivotal role in Zara’s fast-fashion model (Zara: Why Zara can’t do without India now! | – The Times of India). While air shipping raises costs, the fact that Zara “can’t do without India” (Zara: Why Zara can’t do without India now! | – The Times of India) highlights the depth of the partnership – India’s ability to deliver quality apparel at scale gives Zara agility despite the distance. This case illustrates the strategic importance of India for European apparel supply chains: by manufacturing in India, European retailers achieve low unit costs and supply chain resilience (multiple sourcing options), while India gains investment and employment.
• Case Study – Sustainable Sourcing: H&M (Sweden) works with hundreds of Indian suppliers, many of whom participate in H&M’s sustainability programs. H&M has piloted a green financing tool to reward its Indian suppliers for improving environmental performance (H&M’s ‘green’ financing tool supports supplier sustainability). This has led to Indian factories adopting renewable energy and cleaner processes, benefiting both the environment and H&M’s long-term costs. The result is a more efficient supply chain that meets European consumers’ demand for ethically made fashion.

European textile/apparel firms, from high-street brands to technical textile manufacturers, can thus gain cost savings, capacity, and sustainability credentials by deepening their manufacturing ties with India. With upcoming trade agreements potentially reducing tariffs, India’s position as a key sourcing and manufacturing base for Europe is set to strengthen further.

Electronics & Technology

India has rapidly emerged as a manufacturing hub for electronics and high-tech assembly, a sector traditionally dominated by East Asia. For European companies in electronics, telecom, and high-tech industries, India offers:

• Production Linked Incentives (PLI): India’s government has rolled out generous incentives for electronics manufacturing, allocating over $20 billion under PLI schemes for smartphones, semiconductors, and IT hardware. This has attracted global players. Notably, Europe’s STMicroelectronics partnered with Taiwan’s Foxconn to set up a semiconductor fabrication facility in India (Bridging worlds: navigating the promising India-Europe trade corridor | United Kingdom). This venture is supported by PLI subsidies and marks India’s entry into advanced chip manufacturing – European firms can thus participate in building new semiconductor supply chains in India with substantial government support.
• Telecom & ICT Hardware: India is the world’s second-largest telecom market, driving demand for network equipment and devices (Bridging worlds: navigating the promising India-Europe trade corridor | United Kingdom). European telecom equipment makers like Nokia (Finland) and Ericsson (Sweden) have expanded manufacturing in India, producing 4G/5G equipment locally. Nokia, for example, now exports a sizable share of its India-made telecom gear to global markets, leveraging India’s lower costs and skilled workforce in electronics assembly. Such expansions are aided by improved logistics and special economic zones that simplify importing components and exporting finished goods.
• Consumer Electronics: With India’s massive consumer base, companies producing electronics (from appliances to gadgets) can achieve scale. European appliance makers (like Bosch-Siemens in white goods) have factories in India to serve both Indian consumers and export markets. Cost savings are significant: manufacturing costs for electronics in India can be 10-20% lower than in Eastern Europe, aided by cheaper labor and increasing local sourcing of components (The Trillion-Dollar Manufacturing Exports Opportunity for India | Bain & Company). As the ecosystem matures (e.g. local suppliers for circuit boards, plastics, etc.), these savings are expected to grow.
• R&D and Engineering Talent: India boasts a huge pool of engineers and IT professionals, which European tech firms can integrate with manufacturing. Many EU companies have established R&D centers in India (for instance, Siemens and ABB in industrial automation) that work closely with manufacturing units. This co-location of engineering and production helps in rapid prototyping and cost-efficient product development. Additionally, India leads in adoption of Industry 4.0 and smart manufacturing technologies – a Rockwell Automation survey found Indian manufacturers are global frontrunners in investing in digitalization (India As an Emerging Global Manufacturing Hub). European manufacturers in India can therefore benefit from a tech-forward environment (IoT-enabled plants, AI in quality control, etc.) supported by local IT expertise.
• Market Diversification (China+1): Given geopolitical risks and supply chain disruptions, European tech companies are adopting a “China+1” strategy – adding India as an alternative manufacturing base. India’s advantages include a large English-speaking workforce and commercial incentives that mitigate initial costs of setup (India As an Emerging Global Manufacturing Hub). Companies like Samsung and Apple (although not European) have already significantly ramped up production in India. European electronics firms can similarly diversify to India to reduce over-reliance on China, while tapping into India’s growing electronics export capability (electronics exports from India have surged with double-digit growth in recent years, supported by policy boosts (The Trillion-Dollar Manufacturing Exports Opportunity for India | Bain & Company)).

Chemicals and Specialty Chemicals

India’s chemicals industry – spanning petrochemicals, specialty chemicals, and agro-chemicals – is a high-growth sector (~9-11% annual growth) and an attractive manufacturing location for European chemical companies due to:

• Feedstock and Cost Benefits: India offers relatively lower costs for chemical processing, thanks to competitive labor and improving availability of feedstocks (oil, gas, minerals). As per industry analyses, Indian chemical manufacturers leverage a strong supplier base and cost advantage compared to other hubs (The Trillion-Dollar Manufacturing Exports Opportunity for India | Bain & Company). For example, producing generic active ingredients or specialty coatings in India can be significantly cheaper than in Europe, while meeting the same quality standards. European firms like BASF and Solvay have established large production sites in India to capitalize on these efficiencies and to be closer to Asian customers.
• Clusters and Infrastructure: Dedicated chemical parks and petroleum complexes (such as Jamnagar, Dahej, etc.) provide integrated infrastructure – port access, common effluent treatment, continuous power – making it easier for foreign investors. These clusters often come with tax incentives and pre-cleared environmental permissions. A Dutch company in performance chemicals or a German maker of polymers can set up in these zones to rapidly start production with lower compliance hurdles and enjoy tax holidays.
• Regulatory Environment: India allows 100% FDI in chemicals with no sectoral licensing in most cases, and regulations are aligned with global norms (India is a signatory to chemical safety conventions). The government has also been streamlining regulations for ease of doing business in this sector; for instance, many bureaucratic approvals for plant construction and environmental clearances have been digitized or expedited as part of ease-of-doing-business reforms (EASE OF DOING BUSINESS | Make In India) (EASE OF DOING BUSINESS | Make In India). This has contributed to India becoming one of the top destinations for chemical manufacturing investments.
• High-Growth Domestic Market: India’s domestic demand for chemicals (from fertilizers to plastics to pharmaceuticals) is immense and growing with its economy. By manufacturing in India, European chemical companies not only save costs but also gain market access without import tariffs. For example, Clariant (Switzerland) produces pigments and additives in India to supply Indian textile and plastics producers locally, avoiding import duties and logistics costs. Similarly, AkzoNobel (Netherlands) makes paints in India for the construction market. These local operations also serve as export bases – Indian chemical exports have risen sharply as global companies use India to supply Asia and Africa.
• Sustainability Angle: Chemical manufacturing can be energy-intensive, and India is taking steps to green this sector. Incentives are emerging for chemicals made with renewable energy or for recycling (like recycled plastics). EU companies with advanced sustainable chemistries can partner with Indian firms to implement cleaner processes, benefiting from government grants for green technology adoption (The Regulatory Landscape of Green Manufacturing in India). This aligns with EU’s own sustainability priorities while leveraging India’s cost edge.

Renewable Energy & Sustainability

India is undergoing a green energy transformation, targeting 500 GW of renewable energy capacity by 2030 and investing heavily in sustainable infrastructure (Bridging worlds: navigating the promising India-Europe trade corridor | United Kingdom). This presents a dual opportunity for European businesses: manufacturing renewable energy equipment in India, and benefiting from India’s sustainability incentives for industries:

• Renewable Equipment Manufacturing: India encourages local manufacturing of solar panels, wind turbines, batteries, and other green tech through initiatives like the PLI scheme for high-efficiency solar modules and advanced chemistry batteries (The Trillion-Dollar Manufacturing Exports Opportunity for India | Bain & Company). European clean-tech companies can set up production in India to take advantage of these incentives and the booming market. For example, ENGIE (France) and TotalEnergies (France) have invested in Indian solar and wind projects and source components locally (Bridging worlds: navigating the promising India-Europe trade corridor | United Kingdom). Danish wind giant Vestas and Spanish wind company Siemens Gamesa both manufacture turbine components in India, benefiting from lower costs to supply global projects. By manufacturing in India, EU firms also sidestep import tariffs on equipment in India’s domestic renewable projects, giving them a competitive edge in bids.
• Green Manufacturing Incentives: The Indian government offers various sustainability incentives for manufacturers: companies adopting solar power for their factories can get subsidies or cheaper financing (The Regulatory Landscape of Green Manufacturing in India); there are tax benefits for investments in energy-efficient technology and waste recycling. New PLI schemes even consider adding “green bonuses” – extra incentives if production uses green processes (Sustainable manufacturing: How PLI schemes can become a tool for …). European manufacturers with strong ESG commitments can leverage these policies. For instance, an Italian glass manufacturer in India might receive grants for installing recycled heat recovery systems, improving its cost structure and carbon footprint.
• Joint Initiatives and R&D: There is increasing EU-India collaboration on sustainability. The EU and India run a Clean Energy and Climate Partnership, facilitating joint projects in areas like green hydrogen and energy storage. European firms in sectors like chemicals or steel can partner with Indian companies to develop greener production methods (e.g., using green hydrogen for refining metals) and potentially qualify for support from both Indian authorities and EU climate finance programs. Such collaboration can create cutting-edge sustainable manufacturing facilities in India that serve global markets.
• ESG and Market Access: As the EU moves toward carbon border adjustments, having manufacturing in a country that is rapidly greening its grid (India’s non-fossil fuel power capacity is already ~45% and growing (How India’s sustainable development goals are powering its growth …)) can be advantageous. Products made in India with renewable energy inputs could have a lower carbon footprint than those made in China with coal-heavy energy. This means European companies can maintain ESG-compliant supply chains by operating in India, potentially avoiding future carbon tariffs. Moreover, India’s government is piloting schemes for “green credits” that industries can earn and trade for meeting sustainability targets – an added reward for early movers in green manufacturing.

In summary, India’s renewable energy push and pro-sustainability policies open up opportunities for EU firms not only in clean-tech manufacturing (solar panels, wind, EV batteries) but also in greening their entire supply chain. By manufacturing in India now, European companies can align with both Indian and EU climate goals, benefiting from incentives today and securing a low-carbon footprint for tomorrow.

Food Processing & Agriculture

India is one of the world’s largest producers of food (from milk to spices to grains) but much of its produce is minimally processed. The government is prioritizing food processing to increase value addition and reduce waste. European companies in agribusiness and food & beverage manufacturing can gain:

• Raw Material Access: India’s vast agriculture sector provides a rich supply of raw materials – fruits, vegetables, tea, coffee, dairy, grains, sugar, spices, etc. By processing in India, European food companies can source these inputs fresh and at low cost. For instance, Dutch and Danish dairy firms have partnered with local Indian dairies to produce cheese and milk powders in India, capitalizing on India’s 187 million+ tonnes of annual milk production. Similarly, a Italian pasta or tomato sauce manufacturer can source Indian durum wheat or tomatoes directly and process locally, saving on raw material costs and import duties.
• Government Incentives: The Pradhan Mantri Kisan SAMPADA Yojana and other Indian schemes offer subsidies for setting up mega food parks, cold chain facilities, and food processing units. Tax exemptions are provided for the first 5–10 years for new food processing plants in designated parks. European companies like Nestlé (Switzerland) and Unilever (Netherlands/UK) have long benefitted from producing in India under such incentives – e.g., Nestlé India enjoys tax holidays in hill-state factories for its processed foods. Newcomers can similarly avail capital grants (up to 50% of project cost) for infrastructure like refrigeration, quality testing labs, etc., significantly reducing setup expenses.
• Export Platform: Food products made in India can not only serve the huge domestic market but also be exported to Middle East, Africa, and other Asian countries at competitive rates. Many European firms use their Indian operations as an export hub for regional markets. For example, Barilla (Italy) could produce pasta sauces in India (using local tomatoes and spices) and export to the Middle East, leveraging India’s lower production costs and trade agreements with nearby countries. Moreover, India has geographic advantages – it’s closer to Middle Eastern and African markets than Europe is, saving shipping time and cost.
• Rising Processed Food Demand in India: By manufacturing in India, EU companies can also capture India’s growing consumer market for packaged & processed foods. As Indian incomes rise, demand for quality processed and convenience foods is climbing. European brands ranging from Spanish olive oil producers to French bakery companies are setting up local packaging and production to tailor products to Indian tastes (e.g., smaller pack sizes, local flavors) at lower cost. Local presence helps in navigating India’s complex food regulatory requirements and in responding quickly to market trends.
• Technology & Quality Transfer: European food processing technology is highly regarded, and bringing it to India can yield efficiency gains. For instance, a Polish meat processing firm setting up in India can introduce advanced cold-chain and packaging tech, reducing waste (a big issue in India’s supply chains) and ensuring EU-grade quality. The Indian government often facilitates such knowledge transfer through joint research centers and by easing import of specialized equipment. This creates a win-win: the European firm lowers production cost and expands its brand in India, while India benefits from improved food processing standards and employment.

Engineering & Machinery

India’s engineering and capital goods sector is robust, manufacturing everything from industrial machinery to construction equipment and railway stock. European machinery manufacturers and engineering firms can benefit in multiple ways:

• Lower Production Costs for Heavy Equipment: Building industrial machinery (like factory equipment, engines, earthmovers) is labor-intensive and India’s labor cost advantage significantly lowers manufacturing expenses. A German manufacturer of machine tools or an Austrian maker of pumps can save substantially by producing standard components in India. According to industry reports, India’s engineering works can have over a 40% cost advantage vis-à-vis Europe (‘Manufacturing cost competitiveness against Europe may drop’ | Delhi News – Times of India). This is why companies like Siemens (Germany) and ABB (Switzerland/Sweden) have large factories in India producing switchgear, turbines, and transformers – not only for India but for global export. They achieve world-class quality at lower cost by utilizing India’s skilled technicians and cheaper fabrication.
• Industrial Corridors and Cluster Benefits: India has set up Industrial Manufacturing Zones and corridors (such as the Delhi-Mumbai Industrial Corridor) that provide excellent infrastructure and connectivity for heavy industry. European firms setting up in these zones get benefits like plug-and-play facilities, shared utilities, and proximity to component suppliers. For example, Danish pump maker Grundfos built a plant in an Indian industrial park, benefiting from ready access to casting suppliers and a logistics hub, which improved supply chain efficiency and reduced time-to-market.
• Government Procurement & “Make in India”: Sectors like railways, defense, and infrastructure in India have local content requirements, meaning foreign firms gain preference in government tenders if they manufacture in India. An example is India’s huge railway modernization – Alstom (France) now manufactures locomotives in Bihar, India for Indian Railways under a government contract, and Stadler (Swiss) and others are eyeing local assembly for metro coaches. These projects come with assured long-term orders, making the investment in Indian manufacturing facilities very rewarding. European engineering firms can thus secure large contracts by committing to “Make in India”, with the dual benefit of India as a production base for global needs as well.
• Export Hub for Machinery: India’s industrial machinery exports are growing, driven by quality improvements and global cost competitiveness. Many global companies use India as one of their export manufacturing hubs. JCB (UK), for instance, manufactures construction equipment in India and exports a significant portion to Africa and Southeast Asia. Likewise, Atlas Copco (Sweden) produces compressors in India for worldwide distribution. European SMEs in machinery can replicate this model – a mid-sized Italian packaging machine company could produce in India and export to new markets using India’s network of trade agreements and lower costs to offer a more attractive price than if the machines were made in Europe.
• Skilled Engineering Talent: India produces millions of engineers annually. This talent pool not only supports production but also local adaptation and innovation. European machinery firms often establish engineering design centers alongside factories in India. This enables localization of products (designing machinery suited to tropical climates or different power conditions) and even global R&D. The result is a virtuous cycle: high-end engineering design + low-cost manufacturing at one location. Such integration has helped companies like Bosch (Germany) develop India-engineered products (like affordable ABS systems for vehicles) that succeed globally, demonstrating the innovation capacity available when manufacturing in India.

Aerospace & Defense

Aerospace and defense are strategic high-tech sectors where India is keen to build domestic capabilities. For European aerospace and defense companies, India’s market size and policy shifts open up manufacturing and partnership prospects:

• Large Market with Localization Mandates: India is one of the world’s largest importers of defense equipment, and it’s now insisting on local production for these purchases. The “Make in India – Defense” policy requires foreign OEMs to manufacture a portion of the product in India or partner with Indian firms for technology transfer. European defense giants have responded: Dassault Aviation (France), after winning the Indian Air Force Rafale fighter contract, invested in an Indian production facility for aircraft components as part of a 50% offset requirement. Similarly, Airbus and Tata have a joint venture to manufacture C-295 transport aircraft in India for the Air Force, the first full aircraft assembly line in India by a foreign OEM. These partnerships allow European firms to set up advanced manufacturing (aerospace-grade machining, assembly, testing) in India with government backing and assured orders.
• Cost-Effective Supply Chain for Global Programs: Indian aerospace suppliers have matured, supplying components to Boeing, Airbus, and other global programs. European aerospace manufacturers can leverage this supply base for cost reduction. For example, many Airbus A320neo parts (like doors and wing sections) are sourced from Indian manufacturers. Establishing a manufacturing presence or joint venture in India can integrate a European firm into this efficient supply chain, lowering costs for global production. Safran (France), for instance, has set up a facility in Hyderabad to manufacture parts for aircraft engines and is considering building engines in India in the future, attracted by cost savings and skilled labor availability (India produces a large number of aeronautical engineers).
• Defense Corridors and Incentives: India has created two Defense Industrial Corridors (in Uttar Pradesh and Tamil Nadu states) with special incentives for defense manufacturing – cheap land, tax breaks, and R&D support. European defense SMEs (in areas like avionics, radars, materials) can invest in these corridors to partner with larger companies and serve both Indian and export markets. The recent entry of Saab (Sweden) is an example: Saab broke ground in 2024 on a new facility in India to produce its Carl-Gustaf recoilless rifles (Saab begins construction of Carl-Gustaf factory in India). This not only helps Saab fulfill Indian orders but also positions it to supply other countries from India, achieving cost efficiencies in production.
• Space and Aviation: Outside of defense, India’s space agency (ISRO) and burgeoning private space sector offer collaboration avenues. European space companies can manufacture satellite components or ground equipment in India, leveraging ISRO’s low-cost innovation model. In civil aviation, India will be one of the biggest aircraft markets; European aviation suppliers (for example, interior cabin equipment, avionics) can set up in India to support aircraft assembly and maintenance operations locally. With Boeing and Airbus planning final assembly lines in India down the road, having a manufacturing base in India will be crucial for suppliers to remain competitive.
• Technological Collaboration: Importantly, manufacturing in India doesn’t mean a compromise on technology – India has proven capability in precision manufacturing and software (vital for aerospace). Many Indian firms are certified to European aerospace standards. Collaborative R&D is promoted by both governments; for instance, the EU-India S&T Agreement facilitates joint research which can include aerospace materials or defense tech. A European firm manufacturing in India can tap into Indian institutes for research partnerships while enjoying a lower-cost production environment for prototypes and testing.

IT Services & Outsourcing

While not manufacturing in the traditional sense, IT services and business process outsourcing are a critical part of global operations for many European companies. India is the world’s leading outsourcing destination, and European firms can benefit by outsourcing or co-locating services and software development to India:

• Cost Savings and Talent in IT: India’s IT industry provides skilled professionals in software development, engineering design, finance, customer support, etc., at a fraction of European labor costs. Outsourcing to or establishing captive centers in India can save European companies 20-50% in operational costs. This extends to high-end work like R&D and data analytics. For example, Danish shipping company Maersk runs large IT development centers in India that handle its global logistics software – delivering solutions faster and cheaper by leveraging Indian talent. Nearly every major European bank (Deutsche Bank, BNP Paribas, Santander, etc.) has back-office or IT hubs in India to handle processes and innovation efficiently.
• Outsourcing of Manufacturing Services: Beyond pure software, India’s outsourcing includes engineering services – European engineering firms outsource CAD design, simulations, and even product development tasks to Indian teams. This supports manufacturing: a Swedish auto firm can have Indian engineers design components or write embedded code for vehicles, complementing the physical manufacturing done elsewhere. The result is a blended global value chain that optimizes cost and expertise.
• Policy Support and Parks: The Indian government has established numerous IT parks and Special Economic Zones for IT/BPO, offering tax exemptions (typically a 5-year tax holiday and other rebates) to export-oriented IT units. European companies setting up a Global Capability Center (GCC) in India benefit from such incentives and world-class infrastructure (high-speed telecom networks, reliable power, etc.). Cities like Bangalore, Pune, and Hyderabad host many European GCCs, forming ecosystems of innovation. Siemens, for instance, has a large engineering and IT center in Bangalore that not only serves Siemens’ global needs but also innovates products for emerging markets, creating additional revenue streams.
• Time Zone and Cultural Compatibility: India’s time zone allows overlap with European working hours, facilitating real-time collaboration. Culturally, Indian IT professionals often have experience working with European clients and can adapt to multilingual support needs (English is common, and some Indian teams offer services in European languages too). This makes managing outsourced operations smoother. Many European SMEs, who might find full-scale India operations daunting alone, work through Indian IT service providers like TCS, Infosys, or Wipro to outsource processes. This plug-and-play model lets even mid-sized European firms gain the cost and scale advantages of India without large upfront investments.
• Growth Potential: The outsourcing relationship between Europe and India is growing beyond call centers to include cutting-edge digital services – cloud computing support, cybersecurity operations, AI and machine learning development. As European industries adopt Industry 4.0 and digital transformation, having IT and software development centers in India can accelerate technology adoption in their manufacturing and services. In essence, India acts as an extension of a European company’s innovation and operations team. By 2025 and beyond, we expect even more EU-India collaboration in IT via joint innovation labs (some supported by EU programs for digital cooperation) and through the upcoming EU-India Trade agreement which is likely to ease data flow and talent mobility.

Industries with High EU-India Collaboration & Growth: Across these sectors, some stand out for particularly strong EU-India collaboration and high growth potential. Automotive and renewable energy are high on this list due to India’s market size and policy support (EVs, solar/wind). Pharmaceuticals and IT services have long-standing deep ties (Europe relies on India for generics and IT, and this will grow). Aerospace/defense collaboration is newer but poised to boom with big-ticket projects. Textiles and apparel remain a staple of collaboration given fashion’s global nature and India’s capabilities. In each case, growth trends (India’s rising exports, EU companies expanding presence) indicate a favorable trajectory for European businesses that invest or partner in India’s manufacturing story.

Identified Key Benefits of Manufacturing in India

European businesses can derive multiple benefits by manufacturing in India. These opportunities span cost savings and revenue growth, improved supply chain efficiency, favorable regulatory conditions, and incentives aligned with sustainability goals. Below, we analyze each of these dimensions:

Cost Savings & Revenue Growth

Labor Cost Advantage: India’s labor cost is a fraction of Europe’s. Average manufacturing wages in India are roughly $2–3 per hour (even lower for entry-level roles), compared to $20–$40 per hour in many Western EU countries. This gap translates into substantial cost savings for labor-intensive manufacturing. Even as Indian wages rise, studies indicate India will remain around 30% cheaper than Europe in manufacturing costs through 2023 (‘Manufacturing cost competitiveness against Europe may drop’ | Delhi News – Times of India). In specific sectors, the difference is even starker – for example, pharma manufacturing costs are ~1/3 lower than in Europe (The Trillion-Dollar Manufacturing Exports Opportunity for India | Bain & Company). This cost arbitrage allows European companies to either improve margins or offer more competitive pricing globally. Lower costs also mean a lower breakeven point, enabling companies to take on projects or product lines that might be unviable with European production costs.

Taxation Benefits: India has significantly reduced corporate tax rates to attract manufacturing. Since 2019, new manufacturing companies have an optional 15% corporate tax rate (effective ~17% with surcharges) ( Corporate tax rates slashed to 22% for domestic companies and 15% for new domestic manufacturing companies and other fiscal reliefs ), which is one of the lowest globally and far below typical European rates (~25–30%). Even existing companies get a reduced 22% rate if foregoing exemptions ( Corporate tax rates slashed to 22% for domestic companies and 15% for new domestic manufacturing companies and other fiscal reliefs ). Additionally, many states offer tax holidays (0% tax for 5-10 years) for setting up in designated industrial zones. For example, a French food processor setting up in an Indian food park might pay no corporate tax for 5 years and only 15% thereafter – boosting net profits. India also has duty exemptions for importing capital equipment for new plants, reducing initial setup cost. These tax and duty incentives directly improve the ROI for European investors.

Subsidies and Cash Incentives: Apart from taxes, India’s central and state governments provide capital subsidies, land at concessional rates, and cash incentives in priority industries. The Production Linked Incentive (PLI) schemes are a marquee example: they offer direct performance-linked incentives (rebates) to manufacturers in 13 sectors including electronics, autos, pharma, and solar. The PLI outlay is about $47.8 billion over five years (The Trillion-Dollar Manufacturing Exports Opportunity for India | Bain & Company) (The Trillion-Dollar Manufacturing Exports Opportunity for India | Bain & Company). A European electronics firm could receive, for instance, a 4-6% cashback on its sales revenue from India if it meets investment and output targets – effectively a grant that boosts profitability. State governments also compete with each other: they may offer to foot part of the training cost for workers, or reimburse GST (goods and service tax) for a few years for plants above a certain size. These subsidies can lower the effective cost of production for foreign manufacturers significantly, sometimes tipping the scales in favor of India when compared to other locations.

Revenue Growth – Access to India and Regional Markets: Manufacturing in India not only saves costs but also opens new revenue streams. India’s domestic market is fast-growing; having a local production base allows European firms to capture this demand without high import tariffs. Sectors like automobiles, electronics, and food have high import duties to encourage local making – by producing in India, EU companies avoid these duties and gain price advantage in India’s market. Furthermore, India’s location and trade links allow reaching South Asia, Middle East, and Africa efficiently. Many EU firms in India re-export products to these regions, adding revenue. The scale of India operations can also spur product line expansions: e.g., an Italian appliance firm might introduce a mid-range product line globally after successful high-volume production in India for the Indian middle class. In essence, India can be a base to boost global sales, not just a cost center. Companies often find that an India plant can serve multiple markets, thereby increasing overall turnover while keeping costs in check.

To illustrate the combined effect of these cost advantages, consider the following comparative snapshot:

Factor	India (Typical)	Western Europe (Typical)
Average Manufacturing Wage	$250 per month (approx. $1.5–$3/hour)	$3,500 per month in Germany (approx. $20+/hour)
Corporate Tax Rate	15% for new manufacturers (17% effective)	22% standard; ~25% (e.g. France ~26%, Germany ~30% including local trade tax)
Power & Utility Cost	Lower in absolute terms (industrial electricity $0.08–$0.10 per kWh in some states)	Higher (industrial electricity $0.12–$0.20+ per kWh in the EU); however, reliability in the EU is higher, with India offsetting via captive power and improvements
Land and Construction	Often subsidized or at lower cost (varies by state; e.g., $50k/acre in industrial parks plus subsidies)	Expensive, especially in Western Europe (e.g., >$200k/acre in industrial zones in Germany); longer approval times
Production Incentives	PLI scheme (3–6% of sales as incentive; see “The Trillion-Dollar Manufacturing Exports Opportunity for India	Bain & Company”) and capital subsidies up to 30–50% in some sectors (e.g., food parks, electronics clusters)
Labor Productivity	Growing (not yet at EU levels, but improving with training and automation; some sectors approach parity in output)	High, with advanced automation—European plants are often more automated to offset higher costs; India is narrowing the gap with increased tech adoption (see “India As an Emerging Global Manufacturing Hub”)

Table: Cost Comparison – India vs Europe for Manufacturing. Note: India’s labor cost advantage is offset slightly by infrastructure and productivity gaps, but government incentives often bridge that gap. For many industries, the overall cost of production in India can be 20-30% lower than in Europe after factoring in all expenses (‘Manufacturing cost competitiveness against Europe may drop’ | Delhi News – Times of India). This margin can be decisive in price-sensitive global markets.

Supply Chain Efficiency

Logistics Infrastructure & Trade Corridors: India has made huge strides in improving logistics – crucial for efficient supply chains. The country jumped to 38th rank globally in the World Bank’s Logistics Performance Index 2023, up 16 places since 2018 ( Press Release: Press Information Bureau ), reflecting faster and more reliable movement of goods. Massive investments are underway in dedicated freight corridors (DFC) – for example, the Western DFC (connecting Delhi to Mumbai ports) cuts transit time and cost for containers significantly. Port modernization under the Sagarmala initiative has increased port capacities and reduced dwell times for cargo. For European companies, this means that moving raw materials into and finished goods out of India is becoming smoother and quicker. Additionally, the new India-Middle East-Europe Economic Corridor (IMEC), agreed in 2023, will link India to Europe via Gulf countries and Israel by rail and sea, cutting shipping times, costs, and fuel use between India and Europe (US, India, Saudi, EU unveil rail, ports deal on G20 sidelines | Reuters) (US, India, Saudi, EU unveil rail, ports deal on G20 sidelines | Reuters). Once operational, IMEC could dramatically streamline supply routes for goods bound for Europe.

Global Connectivity and Shipping: Geographically, India is well-positioned on major shipping lanes (via the Suez Canal to Europe, via the Strait of Malacca to East Asia). Shipping from India to Europe typically takes about 2-3 weeks (e.g., Mumbai to Rotterdam ~18-22 days by sea). This is comparable to shipping from China to Europe. With growing trade volumes, more direct shipping services are available, reducing the need for transshipment. Air cargo connectivity has also improved – major European cargo airlines and integrators have hubs in Indian metros, enabling fast shipping of high-value goods. For sectors like fashion (as seen with Zara’s use of air freight from India) or electronics, this connectivity ensures supply chain responsiveness despite distance. European firms can reliably integrate Indian production into their just-in-time supply chains.

Domestic Transport and Supplier Networks: Within India, the infrastructure upgrade is notable. The government’s Bharatmala highway project and upgraded railroads have improved inland freight movement. Introduction of GST (a nationwide tax) in 2017 removed interstate checkpoints, speeding up truck transit. As a result, logistics costs as a percentage of GDP are expected to fall, making internal distribution more efficient. For a European manufacturer, this means raw materials can be sourced from various parts of India and brought to the factory with fewer delays, and finished goods can reach ports or Indian markets faster. Moreover, India has deep supplier networks in many sectors (auto clusters in Chennai/Pune, textile clusters in Tiruppur, electronics cluster in Noida, etc.). Setting up in or near these clusters gives foreign companies access to a local supply base of parts and inputs, shortening the supply chain and reducing import dependence. For example, a German auto plant in India can source 70-80% of components locally thanks to the established auto-component industry, simplifying logistics and lowering inventory costs.

Trade Agreements and Export Facilitation: India has been actively signing trade agreements with other regions – recent ones with ASEAN, Japan, South Korea, and more recently with UAE and Australia (The Trillion-Dollar Manufacturing Exports Opportunity for India | Bain & Company). Goods produced in India can often enter those partner markets at lower or zero tariffs due to these agreements, enhancing the re-export advantage for manufacturers. Additionally, special economic zones (SEZs) in India offer duty-free import of inputs and faster customs clearance for exporters. A European electronics firm in an SEZ can import high-tech components without customs duties, assemble in India, and re-export to Europe or other markets with minimal red tape. Schemes like “Trade Infrastructure for Export Scheme (TIES)” help upgrade logistics facilities specifically for export-oriented units. All these measures ensure that an India-based manufacturing unit can be tightly woven into global supply chains with competitive logistics performance.

In summary, India’s supply chain environment has transformed in the last 5-10 years – the combination of better infrastructure, digital systems (like RFID tracking of containers nationwide) ( Press Release: Press Information Bureau ), and strategic trade routes makes it far easier today for European businesses to manage production in India without logistical bottlenecks. The trajectory is positive, with major projects between now and 2030 set to make India a logistics hub bridging Asia and Europe.

Regulatory Benefits (Ease of Doing Business & FDI Policies)

Ease of Doing Business Improvements: India has substantially reformed its business environment. Between 2014 and 2019, India jumped 79 places in the World Bank Ease of Doing Business rankings, from 142 to 63 (EASE OF DOING BUSINESS | Make In India). Reforms behind this leap include streamlined procedures (fewer forms and faster approvals to start a business or get construction permits), digitization of bureaucratic processes, and strengthening of legal frameworks. Over 39,000 compliance requirements have been reduced or simplified (EASE OF DOING BUSINESS | Make In India). For instance, one-stop online portals now handle business registration, tax IDs, and other clearances simultaneously. Construction permits that once took months now are approved in a few weeks in major cities (EASE OF DOING BUSINESS | Make In India). Electricity connections, which took 100+ days, now take ~50 days (EASE OF DOING BUSINESS | Make In India). Such changes directly benefit foreign manufacturers setting up plants – less time and uncertainty in getting operational. Moreover, contract enforcement and insolvency resolution have improved (India implemented a new Bankruptcy Code), giving investors more confidence in legal recourse.

Liberalized FDI Regime: India’s foreign direct investment policies are very liberal for manufacturing. Most sectors allow 100% foreign ownership under the automatic route (no prior government approval). This includes automobiles, textiles, chemicals, equipment, renewable energy, etc. Even defense manufacturing now allows up to 74% FDI automatic (100% with approval for high-tech) – a big shift from earlier caps. FDI inflows have accordingly surged, up ~65% between 2015 and 2020 (The Trillion-Dollar Manufacturing Exports Opportunity for India | Bain & Company), showcasing the attractiveness of these relaxed norms. The government also abolished archaic rules like local sourcing requirements in single-brand retail (to attract companies like IKEA, which now manufactures many of its products in India through suppliers). For European investors, this means they can set up a wholly-owned subsidiary in India with relative ease, retain full control, and repatriate profits freely (the rupee is fully convertible on the current account, and profit repatriation is allowed, subject to taxes).

Single-Window Clearance & State Initiatives: A major pain point for businesses – multiple permits – is being addressed by “single-window clearance” systems at both central and state levels. The Indian government launched a National Single Window System in 2021, integrating approvals across ministries (environmental, industrial licenses, etc.) on one platform. Many states have their own single-window agencies to assist investors in navigating local regulations, often with timelines fixed by law (e.g., a state must grant or refuse approval within 30 days, or it’s deemed approved). States like Maharashtra, Karnataka, Gujarat, Tamil Nadu (which host cities like Pune, Bangalore, Ahmedabad, Chennai) are especially proactive, offering investors hand-holding services. This competitive federalism means European projects can often get tailored incentives and faster clearances if they choose a particular state – essentially a buyer’s market for big investments.

Legal Protections and Reforms: India offers a strong legal framework protecting foreign investors. Intellectual property laws are TRIPS-compliant, and enforcement is improving. Arbitration is a common route for dispute resolution, and India has many bilateral investment treaties (BITs) with European nations that provide additional protections like fair treatment and protection against expropriation. Labor laws, traditionally seen as rigid, have been reformed: the government consolidated 29 labor laws into 4 codes to simplify compliance (effective implementation is expected 2025 onward). Several states have increased overtime limits and eased hire-and-fire norms for factories, making labor management more flexible for manufacturers while still protecting worker rights. Furthermore, incentives like the aforementioned 15% corporate tax for new factories ( Corporate tax rates slashed to 22% for domestic companies and 15% for new domestic manufacturing companies and other fiscal reliefs ) and the removal of dividend distribution tax have made India’s regulatory and tax regime very business-friendly for new investments.

In summary, the narrative on India’s business environment has shifted – while challenges remain (bureaucracy isn’t gone overnight), the trend of the last five years is clearly toward easier, more transparent, and more welcoming conditions for foreign manufacturers. European businesses can now expect a regulatory climate that is far more supportive than a decade ago, backed by government agencies actively courting investment.

Sustainability Incentives and ESG Alignment

Green Manufacturing Incentives: Both the Indian government and EU policies encourage sustainable manufacturing, and leveraging India can help European firms meet their green goals. India offers direct incentives for companies to adopt environmentally friendly practices. For example, there are subsidies for installing solar panels or renewable energy captive plants at factories, and for investing in energy-efficient technologies (The Regulatory Landscape of Green Manufacturing in India). A European-owned plant in India can get capital subsidies or soft loans for setting up a solar rooftop or biomass boiler, lowering operating costs (cheaper power) and cutting carbon emissions. Some states offer extra power tariff discounts if a certain percentage of a factory’s energy comes from renewable sources. Additionally, new programs are emerging where PLI incentives might include a bonus for green manufacturing – e.g., higher PLI payout if a textile mill achieves water recycling above a threshold (Sustainable manufacturing: How PLI schemes can become a tool for …). This effectively rewards companies twice: once through lower utility costs and again through incentive payouts for sustainability.

Access to Renewable Energy and Resources: India’s energy grid is steadily getting greener. As of 2023, about 40-45% of installed power capacity is from non-fossil fuels (solar, wind, hydro, nuclear) (How India’s sustainable development goals are powering its growth …). This is expected to reach 50% by 2030 given the 500 GW renewable target. For manufacturers, this means grid power in India will incrementally have a lower carbon intensity, improving the footprint of products “Made in India.” Moreover, India’s aggressive expansion in renewables has made clean power cheap – solar tariffs are at record lows (~₹2.5 per kWh, or $0.03). European companies can sign power purchase agreements with solar/wind farms in India to supply their factories with 100% green power (many states allow this open access). This is a huge advantage for EU firms under pressure to decarbonize – it may be easier and cheaper to achieve a near-100% renewable-powered factory in India than in some parts of Europe, due to abundant sunshine, land for solar farms, and supportive policies.

ESG Compliance and Reporting: Indian regulations are also moving towards mandating ESG disclosures (the top 1000 companies must have Business Responsibility and Sustainability Reports). European firms operating in India will find an increasing alignment with the EU’s own ESG regimes. This harmonization can reduce the compliance burden – data collected for Indian operations can feed into EU sustainability reporting and vice versa. On the social front, India has CSR (Corporate Social Responsibility) rules requiring large companies to spend 2% of profits on social causes, which many European companies have turned into community development programs (education, skilling, etc.) around their factories, improving their brand image and local goodwill. Environmentally, India is introducing policies like extended producer responsibility (EPR) for plastics and electronics recycling. European firms with advanced sustainability practices can actually excel in India and possibly influence industry standards. Being a leader in ESG in India can also have reputational benefits in the EU market, showcasing that the company upholds high standards globally.

Bilateral Green Initiatives: The EU and India are increasingly collaborating on sustainability. The planned EU-India Free Trade Agreement is expected to have a strong chapter on Trade and Sustainable Development, encouraging green technology transfer and commitment to Paris Agreement goals (EU-India). This may open up EU funding for joint projects – e.g., an EU firm could get support under EU’s Global Gateway or Horizon Europe programs for setting up a green hydrogen pilot in India or a circular economy initiative in manufacturing. There are also specific partnerships, like the India-EU Clean Energy and Climate Partnership, which facilitate business cooperation in areas like energy storage, smart grids, and green mobility. European manufacturers in India could tap into these programs for technical assistance or co-funding to adopt best-in-class ESG practices. In turn, manufacturing in India can help EU companies diversify their supply chains in a sustainable way – reducing over-reliance on countries where production might be cheaper but more carbon-intensive or with lower transparency.

In essence, India is not just a low-cost manufacturing locale, but increasingly a low-carbon manufacturing locale. Companies can drive cost reduction and carbon reduction in tandem: one automotive example is Skoda’s Pune plant, which has switched significantly to solar power and achieved water positivity, thus producing cars at lower cost than Europe and with a smaller carbon footprint. By aligning India’s sustainability incentives with EU green objectives, European businesses can turn their India operations into a showcase of profitable yet responsible manufacturing.

EU-Led Programs & Trade Agreements

European businesses considering manufacturing in India should also factor in EU-level programs, trade negotiations, and bilateral policies that support or incentivize such expansion. The landscape of EU-India economic relations is evolving, with trade agreements on the horizon and various initiatives encouraging collaboration:

EU-India Free Trade Agreement (FTA): After a long pause, negotiations for a comprehensive EU-India FTA were relaunched in June 2022 (EU-India). Both sides have expressed optimism about making significant progress by 2025 (India, EU expected to make ‘meaningful’ progress on FTA talks in 2025). When concluded, this FTA is expected to reduce or eliminate tariffs on a wide range of goods. European manufacturers in India stand to benefit twofold: they could import European machinery/parts into India at lower duties, and export the finished products back to Europe with preferential (reduced or zero) tariffs. Sectors likely to gain include automobiles (where India currently has high import tariffs), textiles (EU tariffs on Indian garments could drop), industrial machinery, and chemicals. The FTA will also address non-tariff barriers and aim to protect investments and intellectual property (EU-India), giving European companies more confidence. Notably, it will probably include strong sustainability provisions, which align with the green incentives mentioned earlier. While the FTA is still under negotiation, its potential implementation in the coming years is a key upside for any EU company investing in Indian manufacturing now – essentially future-proofing their market access.

Generalised Scheme of Preferences (GSP): In the interim, the EU’s GSP program offers developing countries like India reduced tariffs on exports to the EU for certain product categories. Although India’s GSP benefits have been scaled back as its economy grew, it still enjoys GSP rates on some goods (for example, specific chemicals, textiles, and processed foods). This means European companies manufacturing those items in India can already export to the EU at a discount tariff. The GSP scheme is being revised for 2024 onward, and the EU has considered linking it to sustainability and labor standards. If India qualifies for enhanced preferences by meeting those, it could further lower tariffs until the FTA kicks in. European importers and retailers benefit via lower import duties on Indian-made goods, improving the competitiveness of those products in the EU market.

EU Investment Facilitation and Financing: The EU, as part of its strategy to enhance connectivity with Asia, has launched the Global Gateway initiative. India is a focus country for Global Gateway, which aims to mobilize €300 billion for infrastructure and connectivity globally by 2027. Some of this is earmarked for India-Europe connectivity projects (like the IMEC corridor) and sustainable energy projects. While not direct subsidies to companies, these investments improve the operating environment for businesses (better ports, energy supply, etc.). Moreover, European development finance institutions, such as the European Investment Bank (EIB), have been actively funding projects in India – from metro rail systems to renewable energy parks. European companies forming joint ventures in such sectors might access EIB loans or guarantees, reducing capital costs. Additionally, EU programs like Horizon Europe encourage R&D collaboration with India; a European firm could engage in a Horizon-funded consortium to develop, say, a new manufacturing technology with an Indian institute, easing the innovation burden.

Bilateral Agreements and Promotion Agencies: Several EU member states have their own frameworks to promote business with India. For instance, Germany and India have an Indo-German Investment Promotion and Protection Agreement, and Germany’s development agency GIZ runs programs to help German Mittelstand companies partner in India (providing market entry info, skill development initiatives, etc.). Business France and Enterprise Ireland have India offices to assist companies in navigating Indian regulations and finding partners. The Nordic countries (Sweden, Denmark, Finland) have joint cooperation memoranda with India focusing on industries like clean tech, resulting in delegation visits and incubators (Denmark’s State of Green initiative exchanges best practices with India’s green manufacturers). Poland, while a newer player in India, has trade promotion through the Polish Investment and Trade Agency facilitating connections in sectors like mining and machinery.

EU-India Collaboration Platforms: High-level platforms such as the EU-India Business Forum and the newly formed EU-India Trade and Technology Council (launched in 2023) create institutional support for businesses. They address issues like standards harmonization, data regulations, and supply chain security. Outcomes from these dialogues can ease operational issues – for example, mutual recognition of certifications (so an Indian-made machine with Indian certification might more readily be accepted in Europe, and vice versa). The Trade and Technology Council specifically is looking at areas like AI, 5G, semiconductors – if it leads to joint ventures in tech manufacturing (as seen by the STMicroelectronics-Foxconn semiconductor plant case (Bridging worlds: navigating the promising India-Europe trade corridor | United Kingdom)), EU firms will have an official channel to get support or raise concerns.

Tariff and Trade Outlook: In the near term, even without an FTA, India has been gradually reducing certain import tariffs unilaterally to spur competitiveness. Budget 2021 and 2022 saw cuts in duties for inputs like steel, and removal of antiquated duties. India also scrapped its additional customs duty on many electronics. For European companies exporting parts to their Indian factories, this is beneficial. On the flip side, the EU is deliberating carbon border taxes (CBAM) on emissions-intensive imports – Indian exporters of steel, aluminum, etc., will be affected. This could indirectly push more manufacturing partnerships where EU firms help Indian partners upgrade to cleaner tech (to avoid CBAM costs). Also, if the UK (no longer in EU) signs its FTA with India (talks are advanced), it may set precedents that the EU-India FTA can build on, such as moderate tariffs on cars or whiskey in exchange for service access. European businesses should stay tuned to these policy moves, as they will shape the cost structure and feasibility of various manufacturing ventures in India.

In summary, the policy winds are blowing toward closer EU-India economic integration. EU-level initiatives are not only improving the macro environment (through trade deals and infrastructure financing) but also offering micro support (through investment facilitation and collaboration platforms) for companies venturing into India. This supportive backdrop means European businesses can move into Indian manufacturing with the confidence that both governments are advocating for their success.

Country-Specific Opportunities in Major EU Economies

While the advantages of Indian manufacturing apply across the EU, each major European economy has particular sectors and strategic interests in India. Here we summarize the opportunity areas for specific countries (Germany, France, Italy, Spain, Netherlands, Denmark, Sweden, Poland), tying together the industry insights with national priorities:

• Germany: As Europe’s industrial powerhouse, Germany stands to gain in automotive, machinery, electronics, and chemicals by manufacturing in India. German automakers (VW, BMW, Daimler) can utilize India as a production hub for small cars and EV components, capitalizing on cost savings and India’s growing auto market. German Mittelstand machinery firms can manufacture machine tools or specialty equipment in India to serve Asian markets more competitively. The Indo-German Chamber of Commerce notes that over 1,800 German companies are already in India, and this number is growing. Special initiatives like the “Make in India Mittelstand” program encourage German SMEs to invest in India by providing facilitation and fast-track clearances. Additionally, Germany’s focus on the “Industrie 4.0” fits well with India’s digital manufacturing push – collaborative projects (e.g., Siemens partnering with Indian IT firms) can create smart factories in India that deliver both efficiency and cost advantages. German firms also leverage India’s strong IT and R&D for dual-purpose centers (engineering + manufacturing). The synergy in automotive R&D (like Bosch India developing software for global auto needs) and subsequent manufacturing is a template that can be deepened. For Germany, manufacturing in India is a path to maintain global competitiveness, diversify supply chains away from China, and access India’s booming infrastructure and consumer sectors with on-ground presence.
• France: French businesses see big opportunities in aerospace & defense, urban infrastructure, and energy manufacturing in India. With high-profile defense deals (Rafale jets, Scorpene submarines) and France’s strategic partnership with India, French defense companies can solidify their footprint by co-producing in India. For instance, Thales and MBDA are working with Indian partners to make radar and missile sub-systems. In civil aerospace, the Airbus-Tata project for aircraft assembly in India is a game-changer that other French aerospace suppliers will likely follow. Urban transport is another area: Alstom is delivering “Make in India” metro trains for cities like Mumbai – French firms in rail technology, smart city equipment, etc., can use India both as a project base and manufacturing locale. Energy is a pillar of France’s interest – whether it’s nuclear (EDF is in talks for nuclear plant construction in India which would involve heavy component manufacturing locally) or renewables (TotalEnergies manufacturing solar equipment via its investees). The French government’s recent outreach (e.g., the “Choose France” summit including Indian CEOs (Bridging worlds: navigating the promising India-Europe trade corridor | United Kingdom)) indicates an emphasis on two-way investment – encouraging Indian companies in France and vice versa. This opens the door for joint ventures: an Indian pharma or IT firm could partner with a French manufacturer to set up in India, combining strengths. France also champions sustainability; thus French companies can pilot new green tech in Indian operations (such as Air Liquide building hydrogen infrastructure in India) with support from both governments.
• Italy: Italy’s mid-sized manufacturing firms can find in India a complementary base for textiles/fashion, automotive (especially two-wheelers and niche cars), and industrial machinery (like packaging, robotics). Italy’s fashion and luxury brands benefit from India’s textiles – some Italian manufacturers are now directly investing in Indian textile mills to secure quality production (e.g., filament yarn plants or fabric processing units) for export back to Europe. In automotive, the two-wheeler market is huge in India; Italian brands (such as Ducati or Vespa scooters under Piaggio) can produce in India to leverage local cost advantage and potentially export to other Asian markets where affordable models are key. The recent entry of Stellantis (which includes Fiat) in manufacturing Jeep and Citroën models in India for export shows the potential. Italian food companies (Barilla, Ferrero) already have processing in India – these could expand as India’s consumer tastes shift and also serve as export hubs for regional markets. The Italian Trade Agency has been active in India, setting up centers of excellence in machinery. As India upgrades its manufacturing tech, Italian firms that provide machinery (textile machines, leather goods machines, etc.) can both sell to India and consider assembling those machines in India to reduce costs, given sufficient volume. Italy’s expertise in design and precision engineering combined with India’s scale and cost can be a win-win: e.g., an Italian robotics company can manufacture simpler robot models in India for factory automation, meeting the needs of the vast Indian SME sector and exporting to Africa. Culturally, Indian business has an affinity for Italian technology in fashion and food, which Italian businesses can capitalize on by deepening local integration.
• Spain: Spain, with its strengths in textile retail, renewable energy, and automotive components, finds India an attractive extension. The success of Inditex (Zara) and Mango in sourcing from India is a blueprint for others – Spanish brands are increasing their procurement from India’s textile hubs for both fast fashion and artisanal products. Some are exploring direct investment in manufacturing or equity stakes in Indian suppliers to secure capacity. In renewable energy, Spain’s experience with wind and solar aligns with India’s goals. Siemens Gamesa and Acciona have been building turbines and wind farm components in India; there’s room for more Spanish SMEs that supply, say, solar inverters or trackers, to set up assembly in India’s renewable parks. In automotive, Spain’s SEAT (via VW) or component makers like Gestamp already have Indian plants supplying carmakers. They benefit from India’s push in vehicle production and the ability to export components. As Spain aims to internationalize its mid-sized firms, India offers a stable, growing market. The Spain-India Council Foundation has been promoting partnerships, and a potential EU-India FTA would specifically help sectors like Spanish agri-food exports (e.g., olive oil, wine) if processed/packaged in India for local sale, avoiding high Indian tariffs. Conversely, India’s pharma and IT presence in Spain is growing; leveraging that, Spanish manufacturers could collaborate on R&D or software (for example, an Indian IT firm helping a Spanish factory implement IoT).
• Netherlands: The Netherlands is among the top sources of FDI into India (partly due to multinationals routing investments through Dutch holdings). Dutch companies can benefit in agri-food processing, high-tech manufacturing, logistics, and circular economy domains in India. Being an agri-trading giant, the Netherlands can bring advanced food processing tech to India’s nascent food parks – for example, Dutch firms in cold chain, dairy processing (FrieslandCampina), or floriculture are well-placed to invest in India’s supply chain and export processed goods. In high-tech, Philips and NXP (semiconductors) have a notable presence; more Dutch firms could manufacture medical devices or electronics, tapping into the PLI scheme. The Netherlands also excels in water and waste management technologies, and India’s focus on sustainability means opportunities to build equipment (like water purification systems, waste-to-energy plants) locally with Dutch expertise. Dutch logistics and port operators (like APM Terminals of Maersk, which is partly Danish but has major Dutch operations) are involved in Indian ports – efficient logistics services support all manufacturers. The Dutch government’s cooperation with India includes initiatives on clean energy and cyber, aligning with manufacturing areas like electric vehicle charging equipment or smart grid components where Dutch companies could set up production in India. Furthermore, the Netherlands’ emphasis on circular economy could see collaboration in recycling facilities (for plastics, e-waste) in India – manufacturing equipment for these facilities in India itself could be a niche avenue.
• Denmark: Denmark’s relatively smaller economy has focused engagement with India on renewables, pharmaceuticals, and maritime sectors. The India-Denmark Green Strategic Partnership (2020) has identified water, energy, and environment as key areas – thus Danish firms in wind energy (Vestas), energy efficiency (Danfoss), and water tech (Grundfos) have been expanding in India. Manufacturing wind blades, pumps, and cleantech components in India not only serves the Indian market but also allows Danish firms to export to other Asia-Pacific markets competitively. Pharma is big for Denmark (with companies like Novo Nordisk and Lundbeck); while they mostly export finished drugs to India, there’s scope for setting up production of formulations or insulin devices in India to benefit from lower costs and address India’s large diabetic population. Maersk (though headquartered in Denmark, operations globally) has a strong presence in India’s logistics, and it could further integrate by manufacturing containers or port equipment in India, given the shipping giant’s pivot toward end-to-end logistics. Additionally, Denmark’s strengths in design and high-end manufacturing (like precision instruments, hearing aids by Demant/Widex, etc.) could find talent in India’s tech hubs to co-develop affordable versions for emerging markets. The Danish government also facilitates financing for projects in India through its investment funds (IFU), which can co-invest in Indian factories that have Danish stakeholder interest, lowering the risk for Danish SMEs to set up manufacturing abroad.
• Sweden: Sweden’s global companies have long ties to India (Ericsson for over a century, Volvo, Atlas Copco, etc.). Automotive and heavy vehicles are prime – Volvo manufactures trucks, buses, and construction equipment in India via joint ventures (Volvo-Eicher for trucks, Volvo’s own bus plant). These take advantage of India as both market and export base for Africa/Asia. Swedish auto safety leader Autoliv and others have also set up component plants, underscoring India’s role in global auto supply chains. Telecom and tech: Ericsson produces telecom gear in India, and Ikea sources extensively (India is one of Ikea’s top sourcing countries for furniture, textiles, rugs – and now with Ikea retail stores in India, some products are locally made). Mining and industrial equipment: Sandvik and Atlas Copco have factories in India for rock tools and compressors, respectively, again using India as a low-cost export hub. With Sweden’s push for sustainability, companies like H&M are deepening sustainable sourcing from India (as discussed). Sweden’s government and business federation run programs like “India-Sweden Innovations’ Accelerator” focusing on clean technology – which could result in joint manufacturing of cleantech solutions in India (for example, Swedish start-ups partnering with Indian firms to manufacture innovative air purifiers or electric vehicle components). Also, Sweden’s defense industry, like Saab’s investment in an India plant for Carl-Gustaf launchers (Saab begins construction of Carl-Gustaf factory in India), shows new areas of growth. Going forward, Sweden sees India as a crucial partner in its “Strategy for Asia” to diversify markets, and manufacturing collaboration is a core component of that.
• Poland: Poland’s manufacturing economy is strong in Europe, but its direct engagement with India’s manufacturing is still developing – this means untapped opportunities. Polish heavy industrial firms (e.g., in mining equipment, shipbuilding components, defense equipment) can find cost-effective production in India especially for export models targeted at developing countries. For instance, a Polish mining machinery company could produce certain equipment in India for sale in African or Asian markets at a more competitive price point than if made in Poland. Poland can also collaborate with India in IT and engineering support for manufacturing – many Polish companies use Indian IT outsourcing, which can be extended to engineering design outsourcing for Polish factories (leveraging Indian expertise in CAD/CAE to design products that might be produced in Poland or vice versa). The two countries have a growing trade (crossed $3 billion recently) with room to expand in chemicals (Poland can source bulk chemicals or fertilizers from Indian subsidiaries), food processing (India is a big buyer of Polish apples; perhaps joint ventures for processing fruits in India), and defense (Poland and India both operate Russian-origin equipment; Polish defense firms could partner with Indian ones to manufacture spare parts/upgrades for these, targeting a global customer base of countries with legacy systems). Additionally, Poland as an EU member can act as a gateway for Indian manufactured goods into Central/Eastern Europe – Polish distribution centers could handle Indian-made products for the region, which might prompt Polish firms to represent or co-invest in Indian manufacturing units ensuring quality and reliability.

Trends and Outlook (2025-2030) – A New Era of EU-India Manufacturing Collaboration

Current and Upcoming Policies (2025+): The Indian government’s policy environment going forward is geared even more towards attracting manufacturing and making it sustainable. The 2025 Union Budget unveiled green incentives such as viability gap funding for green hydrogen and an expansion of the PLI scheme to newer sectors (like hydrogen electrolyzers and semiconductor fabs) (India Unveils Ambitious Green Energy, ESG Initiatives in Budget …). Reforms in labor laws (the new labor codes) are expected to be operational by 2025, giving more flexibility in labor deployment while improving worker benefits like social security – this balance could make manufacturing engagements smoother for foreign firms. On the European side, policies like the Carbon Border Adjustment Mechanism (CBAM) will start phasing in; by 2026, exporters of steel, aluminum, fertilizer, etc., to Europe will need to account for carbon emissions. This actually could favor production in India if India continues to decarbonize faster than some competitors (for example, replacing coal with solar in industry). The EU’s focus on “de-risking” supply chains (a term used to describe reducing over-reliance on one country, notably China) means political and financial support for companies that diversify – we may see EU or national schemes offering insurance, grants, or diplomatic support for companies building manufacturing in trusted partner countries like India.

Past 5-Year Trends as Context: The last five years (2019–2024) have set the stage: FDI into India hit record highs each year, with the EU as a major contributor (Business Opportunities in India for European Companies – Tecnova). Sectors like electronics manufacturing in India exploded (mobile phone exports from India went from near-zero to tens of billions of dollars by 2023, with companies like Apple’s contract manufacturers setting up multiple plants). This trend shows that what was once thought difficult – complex electronics made in India – is now feasible, encouraging others such as European electronics firms to consider India. India’s manufacturing share of GDP which hovered around 15% is gradually rising, and the government’s target is to reach 25%. Meanwhile, Europe in the last 5 years has experienced supply chain shocks (pandemic, geopolitical tensions) which have made India’s stable democracy and rule-of-law-based system more appealing relative to certain alternatives. European CEOs now rank India as a top destination for relocating operations – one survey found India was the first choice for 58% of European manufacturing companies looking to diversify from China (CEO survey: European manufacturing companies increasingly …). This momentum is likely to carry forward.

High-Growth Potential Industries: Looking ahead, electric mobility, battery storage, pharmaceuticals, digital tech, and defense manufacturing are poised for particularly high growth in EU-India collaboration. India aims for a major shift to EVs by 2030; European automakers and battery makers can ride this wave by building factories in India now (for batteries, power electronics, etc.), with support from both governments. Semiconductors is another sunrise area – with the first semiconductor plants (like the STMicro-Foxconn project) underway, a whole ecosystem will grow, and Europe’s expertise in semiconductor machinery (ASML, Applied Materials – though American, European presence) and chip design can plug into India’s ambitions. In pharma, biologics and biosimilars are a new growth edge – Indian companies, with European partners, can make India a base for affordable biotech drug manufacturing, serving global needs.

Actionable Insights / Conclusion: For European businesses, the actionable takeaway is to identify the intersection of their competitive advantage with India’s offerings. If a company’s strategy is cost leadership, India’s cost efficiency is the answer. If it’s innovation, India’s large talent pool and growing tech infrastructure can complement. If it’s market expansion, India’s consumer base is indispensable. Businesses should start with pilot projects – e.g., outsource a component, set up a small assembly unit – and leverage the numerous facilitation channels (trade agencies, consultants, government MoUs) to mitigate entry risks. Given the trajectory of policies (a likely FTA, better infrastructure, and sustained incentives), early movers will lock in the best locations and partners.

Finally, the evolving geopolitical context – with the EU and India both championing a “free, open, and rules-based” global trade system – makes their partnership not just economically sound but strategically wise. European firms manufacturing in India exemplify this partnership: marrying Europe’s technological and managerial prowess with India’s scale and dynamism. The next decade (2025-2035) could very well be the golden era of EU-India industrial collaboration, yielding mutual growth, supply chain resilience, and sustainable development. European businesses have a clear opportunity to be part of India’s manufacturing rise – and those that seize it will find themselves more competitive and diversified in the global arena.

Sources

Standard Chartered – “Europe-India corridor – Growing partnerships” (Bridging worlds: navigating the promising India-Europe trade corridor | United Kingdom) – France and UK leading investments; Choose France summit with Indian CEOs (renewables, pharma); UK’s campaign “Alive with Opportunity” for India

India Briefing – “India as an Emerging Global Manufacturing Hub” (2024) (India As an Emerging Global Manufacturing Hub) (India As an Emerging Global Manufacturing Hub) – Indian policies (PLI, single-window, FDI liberalization) and sector strengths (pharma, auto, electronics, etc.)

Tecnova India – “Business Opportunities in India for European Companies” (Business Opportunities in India for European Companies – Tecnova) (Business Opportunities in India for European Companies – Tecnova) – EU FDI in India and ongoing trade talks (EU-India FTA, India-EFTA, UK partnership)

Standard Chartered (Nicolo Salsano) – “Bridging worlds: India–Europe trade corridor” (Feb 2025) (Bridging worlds: navigating the promising India-Europe trade corridor | United Kingdom) (Bridging worlds: navigating the promising India-Europe trade corridor | United Kingdom) – Trade stats, ~6,000 EU companies in India, examples of EU investments (STMicroelectronics-Foxconn semiconductor plant, Nokia manufacturing, Engie/TotalEnergies in renewables, Philips in healthcare)

Bain & Company – “Trillion-Dollar Manufacturing Exports Opportunity for India” (2022) (The Trillion-Dollar Manufacturing Exports Opportunity for India | Bain & Company) (The Trillion-Dollar Manufacturing Exports Opportunity for India | Bain & Company) – Cost advantages by sector (30-35% cheaper pharma, auto cost advantage vs EU/US), export growth, PLI impact

Times of India / Assocham-Roland Berger – “Manufacturing cost competitiveness” (2016) (‘Manufacturing cost competitiveness against Europe may drop’ | Delhi News – Times of India) (‘Manufacturing cost competitiveness against Europe may drop’ | Delhi News – Times of India) – India ~15% cheaper than Europe then, projected ~30% cost edge by 2023; need for infra and labor reforms

KPMG Automotive Pulse – “India: Automotive sector” (2024) (Automotive pulse – India ) – Case of European OEM exporting ‘Made in India’ EVs; localization by luxury carmakers; EV component investment

Reuters – “India-Middle East-Europe Economic Corridor announced” (Sep 2023) (US, India, Saudi, EU unveil rail, ports deal on G20 sidelines | Reuters) (US, India, Saudi, EU unveil rail, ports deal on G20 sidelines | Reuters) – Planned rail-port link to cut transit time, cost, fuel between India and Europe (IMEC corridor)

Press Information Bureau (Govt of India) – “India jumps to 38th in Logistics Performance Index 2023” ( Press Release: Press Information Bureau ) ( Press Release: Press Information Bureau ) – Logistics improvements, National Logistics Policy, supply chain visibility (RFID tracking) reducing delays

Make in India – “Ease of Doing Business – India” (EASE OF DOING BUSINESS | Make In India) (EASE OF DOING BUSINESS | Make In India) – 79-place jump in ranking (2014-2019), thousands of compliances reduced, faster permits (construction permits rank 184→27, electricity 137→22)

Press Information Bureau – “Corporate tax slashed to 15% for new manufacturing” (Sep 2019) ( Corporate tax rates slashed to 22% for domestic companies and 15% for new domestic manufacturing companies and other fiscal reliefs ) – India’s corporate tax reform details (15% new mfg, 22% others)

The Hindu – “EU-India FTA talks expected to make meaningful progress in 2025” (India, EU expected to make ‘meaningful’ progress on FTA talks in 2025) – EU diplomats optimistic on advancing trade deal by 2025

EU Commission – “EU-India Agreement – Trade Relations” (EU-India) (EU-India) – EU relaunched FTA talks in 2022; EU is India’s #1 trading partner; goals of FTA (remove barriers, open procurement, sustainable development chapter)

Times of India (ET Lifestyle) – “Why Zara can’t do without India now” (Nov 2024) (Zara: Why Zara can’t do without India now! | – The Times of India) – Zara/Inditex’s increasing dependency on Indian manufacturing, 37% jump in air shipments from India, India & BD major suppliers