📊Executive Summary

In 2025, India's manufacturing sector gained momentum, driven by policy incentives and a shift in global supply chains as China's economy faced significant challenges. The Index of Industrial Production (IIP) showed a year-on-year growth of 3.5% in July, up from 1.5% in June. China's prolonged economic slowdown, marked by a PMI below 50 for eight months, has raised concerns about its manufacturing capabilities. The article highlights India's rise as a manufacturing hub, particularly in electronics, with initiatives like the Production-Linked Incentive (PLI) scheme. However, China's recent halt on the supply of critical rare earth metals poses risks to India's electric vehicle ambitions, emphasizing the need for procurement teams to monitor sourcing strategies closely....