India manufacturing GDP could face USD 5.1 trillion gap by 2047

The Angel One report highlighted AI, robotics, automation, digitisation, semiconductor engineering, battery systems and recycling as key areas that could drive manufacturing growth and reduce import dependence. The fund house noted AI-led innovation and productivity gains, automation and digitisation, product and process innovation, and.

“AI led innovation & productivity gains along with industrial automation and adoption of frontier technologies to foster India’s Manufacturing Progress,” it said. It noted that AI-led companies in the US and China are driving a sharp rise in global market capitalisation, while India remains.

What Happened

The report identified several areas where India could expand manufacturing, reduce import dependence and build strategic technological capabilities. These include electric drivetrain and battery systems, semiconductor chip engineering and design, resource circularity and component recycling, and new consumer appliances.

• The gap is also reflected in market performance, with India’s CY25TD returns at 5 per cent, compared with 16 per cent in the US and 21 per cent in China, Angel One said.

• It estimated that wider adoption of cutting-edge technologies could add USD 1.1 trillion to India’s manufacturing GDP by 2047, with AI and robotics expected to be significant contributors to this growth.

• At the same time, failure to adopt frontier technologies across high-impact manufacturing sectors could result in India missing out on USD 270 billion in potential additional manufacturing GDP, the report noted.

Key Details

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