Sona BLW Precision Forgings (SONACOMS) investor relations material

National manufacturing ambitions and challenges

• India aims to become a developed nation by 2047, targeting a $30 trillion GDP and increasing manufacturing's share from 17% to 25% of GDP by FY35.

• Sustaining high nominal GDP growth and boosting manufacturing's GDP share remain key challenges.

• Moving beyond 'Make in India' to 'Defining the future in India' requires climbing a five-step value chain ladder: Assemble, Make, Design, Invent, and Define.

• Historical examples show prosperity follows moving up the value chain, with China advancing all five steps in one generation.

R&D, talent, and capital landscape

• India lags in R&D investment, spending only 0.8% of GDP versus 3-4% in innovation powerhouses; private sector contributes 45% of R&D spend.

• Most critical sub-systems in defense, semiconductors, and pharma are still imported, highlighting the need for indigenous R&D.

• India boasts the world's second-largest pool of auto and software engineers, with 2.5 million STEM graduates annually.

• Engineering talent costs are significantly lower than in the West, enabling globally competitive R&D.

• Capital is increasingly flowing into deep-tech and mobility, with India now the third-largest tech startup funding market and sixth in deep-tech startups globally.

Policy support and ecosystem development

• Government initiatives include PLI schemes, public capex growth, RDI Fund, industrial corridors, and sector-specific parks to boost manufacturing and innovation.

• Over 41,000 compliances have been removed to improve ease of doing business.

• Infrastructure investments and single-window systems are streamlining industrial growth.