India could face a manufacturing GDP gap of up to USD 5.1 trillion by 2047 if it fails to unlock the potential of advanced manufacturing and adopt frontier technologies, according to a report released by Angel One.
The report estimates that the country could miss out on USD 270 billion in additional manufacturing GDP by 2035, scaling up to USD 1 trillion by 2047, if cutting-edge technologies are not integrated into high-impact sectors.
Key areas identified by the fund house to drive manufacturing growth and reduce import dependence include artificial intelligence, robotics, automation, digitisation, semiconductor engineering, battery systems, and recycling. The report notes that AI-led innovation, productivity gains, and industrial automation are critical enablers for India's manufacturing progress.
Furthermore, the study points out that AI-led companies in the US and China are driving a sharp rise in global market capitalisation. In contrast, India remains underrepresented in deep-tech and semiconductor leaders, leaving the country behind the current global growth wave.
This lag is also reflected in broader market performance. According to Angel One, India’s CY25TD returns stand at 5 per cent, compared with 16 per cent in the US and 21 per cent in China.
To bridge this gap, the report outlines specific sectors for expansion and capability building. These include electric drivetrains and battery systems, semiconductor chip engineering and design, resource circularity, component recycling, and new consumer appliances. The wider adoption of these cutting-edge technologies could potentially add USD 1.1 trillion to India’s manufacturing GDP by 2047, with AI and robotics expected to be significant contributors.
"The findings from the Angel One report underline a critical transition point for the Indian economy. While our traditional manufacturing sectors have shown resilience, long-term global competitiveness will increasingly depend on deep-tech integration, particularly in semiconductors, AI, and automation. For the Indian startup ecosystem and industrial sector, this presents both a challenge and a massive opportunity. Bridging the deep-tech gap will require targeted investments and robust collaboration between emerging technology startups and legacy manufacturers to secure our future industrial growth." — Dr. Shishir Gupta, Founder & CEO, StartupLanes
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