2-0 Modi's manufacturing moment: From locomotives to aerospace, India's ambitions take flight

India is quietly—and quite deliberately—rebranding itself on the global stage. From locomotives to aerospace components, India is no longer content with being the world’s back office or a domestic-only manufacturer—it’s gearing up for exports.

On track to build big
Prime Minister Modi’s recent visit to Gujarat wasn’t just a ribbon-cutting ceremony—it was a signal. The inauguration of the Dahod locomotive manufacturing plant in Gujarat and the rollout of a domestically built electric engine are clear signals of intent.

The new locomotives aren’t just made in India—they're made for the world. According to The Tribune, they’re headed to European and African markets.


These aren't legacy diesel machines—they come with regenerative braking systems aimed at improving energy efficiency.

And there’s more fuel in the tank. Indian Railways recently bagged a Rs 2,000 crore order from Guinea for 140 diesel locomotives, to be built at the Marhowrah plant in Bihar. It’s one of the largest railway export deals in India’s history—a clear signal that India wishes to become a serious player in global rolling stock.

Wings of ambition: Aerospace takes off
If the railways are gathering speed, the aerospace sector is hitting altitude. Civil Aviation Secretary Sameer Kumar Sinha says global OEMs now source over $2 billion annually in aerospace components and services from India. The All India Association of Industries pegs the domestic aerospace and defense market at a potential $70 billion by 2030.

Enter the Aerospace India Association (AIA)—a newly launched apex body tasked with multiplying India’s aerospace exports tenfold, from under $2 billion today to $20 billion within a decade. Ambitious? Certainly. But well in sync with India’s now-familiar pattern of big manufacturing bets.

Civil Aviation Minister K. Rammohan Naidu outlined the government’s roadmap: build resilient supply chains, promote indigenous manufacturing, and transform India into a global aviation hub. A key part of that plan? A competitive aerospace supply base, and accelerating India’s own regional aircraft programme.

Complementing this export push is a long-overdue tax reform that could unlock serious potential in the aviation services space. To bolster India’s standing as a global Maintenance, Repair, and Overhaul (MRO) hub, the government, in July last year, implemented a uniform 5 per cent IGST on all aircraft and engine parts.

The MRO sector had been weighed down by a patchwork of GST rates—ranging from 5 per cent to 28 per cent—which resulted in an inverted duty structure and clogged input tax credits. The new regime simplified the tax landscape, and aligns with the government's broader ambition to make India a credible player in aviation manufacturing and services.

PLI + Engineers = Export engine
What’s fuelling this ascent? A cocktail of low labor costs, a high volume of engineering grads, and generous government support through Production Linked Incentives (PLIs). If the acronym sounds dull, the results aren’t: PLIs are making it increasingly irresistible for global giants to shift their supply chains to India.

Litmus test for India's manufacturing capacity
Of course, the journey from “Make in India” to “Made for the World” isn’t without friction. Winning orders is one thing—meeting global benchmarks on quality, consistency, and turnaround time is another. And external variables like trade wars or geopolitical tensions could jolt supply chains.