Make in India: The Tiger Ready to Roar

India’s economic growth story has long been powered by the service sector, including IT, banking, and finance. Today, services absorb around 30% of the workforce and contribute roughly 55% of India’s Gross Value Added and GDP, the largest share among all sectors.

Yet, the global landscape is changing rapidly. Rising US tariffs, shifting trade dynamics, and emerging technologies have highlighted the urgent need to pivot toward manufacturing and hard skills. Unlike services, manufacturing has the capacity to absorb a larger workforce, potentially scaling from 13% to 33% of total employment, making it a critical engine for inclusive economic growth.

The US Tariff Shock: Numbers That Matter

India’s service sector relies heavily on exports to Europe and the US. Around 45% of the workforce is tied to services, making India vulnerable to trade disruptions. In August 2025, the US imposed a 25% tariff on Indian exports, threatening nearly half of India’s $80–85 billion annual exports to America.

In August 2025, US tariff slaps shook major global economies, sparking worldwide turmoil.

The impact is widespread:

  • Textiles, engineering goods, jewellery, electronics, and auto parts, together accounting for 60% of India’s outbound trade, face higher costs abroad.

  • Exports to the US could drop by 30%, from $86.6 billion in 2024 to roughly $60.6 billion in 2025.

  • Garments and home textiles (33% and 59% of exports to the US) risk losing billions in sales.

  • Metals, auto parts, and machinery now face >26% tariffs, erasing India’s price advantage in a sector worth over $10 billion in US sales.

  • Jewellery exports to the US, valued at $10 billion with 40% shipped there, now face 27% duties, impacting margins and jobs.
After the US tariff moves, SBI research predicts a significant impact on the Indian economy. As US is the largest net importer of services from India.

SBI Research forecasts a 25–30 basis point direct hit on GDP growth in FY26. The message is clear: India cannot rely solely on one sector. Manufacturing offers the scale and resilience needed to absorb workforce and mitigate trade shocks.

Manufacturing: Growth by the Numbers

India’s manufacturing sector is projected to reach $1.41 trillion in 2024, doubling to $2.98 trillion by 2035 at a 7% annual growth rate. Despite this, manufacturing contributes only 13–14% of GDP, short of the Make in India target of 25%.

Foreseeing US bullying, India in 2020 bet on manufacturing via PLI Schemes to reduce reliance on the service sector, less vulnerable to tariff wars.

The reasons:

  • Infrastructure gaps in advanced manufacturing skill development

  • Need for modern vocational training facilities

The good news:

  • Purchasing Managers Index (PMI) rose to 59.2 in July 2025, the highest in 17 years, signalling strong output and hiring.

  • May 2025 saw record-high job creation in manufacturing.
This tariff tussle is a boon in disguise, boosting manufacturing as the government urges building homegrown brands.

Government initiatives like the Production Linked Incentive (PLI) schemes target 14 sectors, including electronics, pharmaceuticals, and defence, creating millions of jobs. Electronics alone is projected to reach $300 billion in production by 2026.

Even as US tariffs bite, exemptions in pharmaceuticals ($9.8 billion) and smartphones ($10.6 billion) soften the blow, emphasising the need to upgrade skill infrastructure for sunrise sectors like advanced manufacturing and EV production.

Skilling India: The Numbers Tell the Story

  • 6 crore youth trained over 10 years under the Skill India Mission across 38 sectors, including IT, manufacturing, services, construction, and agriculture

  • Graduate employment rates rose from 36.9% to 37.9%, with overall employability at 54.8% (India Skills Report 2025)

  • Special initiatives have increased women’s participation in vocational training
As homegrown brands grow, demand for skilled workforce rises—Skill India Mission has been driving this for a decade.

The Tata Indian Institute of Skills (Tata IIS) is a flagship initiative addressing the skill gap in manufacturing. With industry-standard equipment and real-world training, Tata IIS equips trainees for high-demand roles in additive manufacturing, robotics, EVs, CNC, mechatronics, automation, and Industry 4.0 technologies.

Manufacturing jobs rose 15%, services 20%, and construction 25% over the last decade, largely driven by skilling programs like Tata IIS.

Tata IIS: Data-Driven Skill Development

Tata IIS, a collaboration between the Tata Group and the Ministry of Skill Development and Entrepreneurship (MSDE), operates world-class campuses in Mumbai (4 acres) and Ahmedabad (20 acres).

Indian Institute of Skills is not only for skill development but also bridging academia and industry for real-world skill development.
  • Over 1,500 trainees trained

  • 70% job placement, with 26% receiving multiple offers

  • Partnerships with 70+ leading organisations ensure industry-aligned learning

  • Short-term, 8–12 week courses in advanced manufacturing, electric mobility, electronics, hospitality, robotics, and automation

Tata IIS blends practical experience with cutting-edge technology, ensuring trainees are industry-ready from day one.

Tata IIS: Data-Driven Skill Development

Global markets are unpredictable. Data shows that domestic manufacturing and skill development provide both a buffer and an advantage. By focusing on Make in India and Skill India, India can:

  • Protect jobs and GDP against shocks like US tariffs

  • Upgrade from low-margin exports to high-tech, high-value manufacturing

  • Train youth and women for globally competitive roles

  • Ensure inclusive economic growth

The Takeaway: India’s Future is Built on Skills and Factories

Numbers tell a bold story: when global markets close doors, India’s answer is preparation, not panic. With more factories, trained youth, and specialised skill programs, the country is building resilience, innovation, and high-value growth.

For those choosing a career path today, the message is clear: India’s growth is powered by people, skills, and manufacturing. Programs like Tata IIS provide the training, tools, and placement support to make India’s industrial future a reality.

The journey from services-led growth to manufacturing-driven resilience starts with skilled professionals who can turn data and technology into tangible results. The world is watching, and India is ready.

Sources

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Our Logo

Inspired by the tree of knowledge, this logo implies a tree with interspersing dots representing various skills that the institute offers, making it a wholesome skilful tree. The tree’s bark represents individuals with different mindsets coming together with a common purpose of growth. Lastly, one can subtly see the acronym IIS which also represents students as figurines.

Our Impact

To date, we have trained and placed around 300 students. Our alumni are working with notable companies, such as Torrent Power, Powerlite Electricals,  Taj Hotels, Indian Accent, and Hyatt.  Equipped with holistic technical and business skills, many alumni have also chosen the path of entrepreneurship to realise their dreams. 

We firmly believe in inclusion. Identifying segments that need us the most is one of our goals. We are mindful of reaching the tribals and marginalised and ensuring maximum women participation.

Our Partnerships

Learning from the industry is at our core. Our industry partners are deeply involved, right from course design and delivery to recruitment. Our current partners include Fronius, Universal Robots, SMC, Phillips Machine Tools, Multivista, Fanuc, MIR, Markforged, Schneider Electric, Lincoln Welders, Hexagon, Formlabs, ABB, Festo, Ather, Tata Motors, Thermax, Larsen & Toubro, Bajaj Auto Ltd., Carraro, Marriott, Indian Accent, Taj, Lollo Rosso, Tomato’s, Ramada by Wyndham, Novotel, La Milano Pizzeria, Renaissance Hotels, The Fern, Tatr, IFEA, The Job Plus, Happy Faces, Sewa.

Campus and Infrastructure

Coming up on a sprawling 20-acre plot in Nasmed village, our state-of-the-art campus is meticulously designed to provide a conducive environment for learning. We believe in investing in the future and the campus infrastructure design is in sync with this philosophy. The buildings, while architecturally simple and sustainable are designed to instil a sense of pride and inspiration. To encourage practical learning, the classrooms have integrated labs that are equipped with the latest industrial equipment, that provide exposure to actual manufacturing practices.

The initial phase of development includes cutting-edge academic buildings spanning 40,000 sqft. Equipped with advanced technical labs specialising in Advanced Manufacturing and Electric Vehicle domains, these facilities can accommodate over 750 trainees annually. As we progress, our vision extends to creating a 3L+ sqft Ahmedabad campus with hostel facilities, catering to training in Advanced Manufacturing, Electric Vehicle, Electronics, and Hospitality sectors.