The Morning Brief BCG India Head on India’s Manufacturing Test
Dec 5, 2025
Rahul Jain, the India head at the Boston Consulting Group and a manufacturing and strategy expert, shares insights on India's ambitious goal to boost manufacturing's share of GDP. He discusses India's significant domestic market advantage and the necessity for indigenization and exports to grow together. Jain identifies key sectors ripe for development and emphasizes the need for resilient business strategies amid geopolitical uncertainties. He also critiques common pitfalls in cost-cutting efforts and stresses the importance of decisive leadership in today's dynamic landscape.
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Indigenization Plus Exports Drive Manufacturing
- India must grow manufacturing beyond consumption-led growth through indigenization and exports.
- Combining import substitution with export expansion can raise manufacturing's GDP share significantly.
Scale, Cost And R&D Are Nonnegotiable
- India needs scale, lower factor costs, and much higher R&D to be globally competitive.
- R&D spend under 0.5% of GDP must rise toward global peers at 2.5–5% for long-term success.
Bet On Future Value Chains
- Do pursue futuristic value chains like renewables, electronics and semiconductors with targeted investments.
- Ensure private sector visions aim for scale to reach cost competitiveness.