88 pc of manufacturers plan to expand operations backed by India's infra push

New Delhi, June 27 (IANS) The government’s infrastructure push has directly influenced capital investment decisions of 88 per cent of manufacturers, signalling increased confidence to scale operations, according to a report on Friday.

India’s manufacturing and logistics ecosystem is undergoing a significant transformation, driven by strong policy support and large-scale infrastructure investments.

Cushman & Wakefield’s report, titled ‘Elevating India’s Manufacturing Resilience: Charting the Path to Self-Reliance,’ reveals high optimism regarding the impact of government-led infrastructure initiatives such as Bharatmala, Sagarmala, Dedicated Freight Corridors, and the National Industrial Corridor Development.

As many as 86 per cent of respondents said these initiatives have positively influenced their business operations, while 95 per cent reported improved access to logistics and transport infrastructure as a result.

For large enterprises, the impact is even sharper — 94 per cent say these upgrades have been pivotal in shaping their expansion plans.

While the infrastructure buildout has laid the groundwork for industrial expansion, government policies like the production-linked incentive (PLI) schemes and ‘Make in India’ are shaping strategic priorities.

Over 40 per cent of respondents said these schemes have had the most significant impact on their business.

Meanwhile, the National Logistics Policy (NLP) and National Industrial Corridor Development (NICD) were cited by 54 per cent as being especially beneficial, particularly among MSMEs, for whom logistics accessibility and industrial park connectivity are key enablers, said the report.

Notably, 77 per cent of the respondents felt that the ease of doing business had improved, with the figure rising to 86 per cent among large-scale firms.

“India’s manufacturing sector is undergoing a structural shift. Our findings indicate a strong alignment between infrastructure investment, policy clarity, and industry intent,” said Gautam Saraf, Executive Managing Director, Mumbai and New Business, Cushman & Wakefield.

To sustain this momentum, India must address deep-rooted cost and capacity gaps — especially in logistics, integrated facilities, and MSME productivity.

“Plug-and-play industrial parks, multimodal logistics networks, and improved land aggregation frameworks are not just enablers, they are essential levers for converting policy momentum into production ready outcomes,” said Saraf.

To support long-term growth, the report lays out a five-pronged strategy: accelerate the development of plug-and-play industrial parks; reassess the parameters that define MSME’s to foster scale; fast-track the rollout of multimodal logistics parks (MMLPs); invest in targeted skill development programs; and empower MSME exports through unified digital platforms and incentives.

--IANS

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