Mastering Advanced Industrial Skills Can Turn India into a Manufacturing Powerhouse: Zoho CEO Sridhar Vembu

India has a real opportunity to emerge as a global manufacturing powerhouse, according to Sridhar Vembu, CEO and co-founder of Zoho. His remarks come as India cements its position among the top five manufacturing economies in the world.

Responding to a post on X highlighting global manufacturing rankings, Vembu noted that India’s manufacturing output stands at $443.91 billion, placing it fifth globally—just behind Germany.

What Sets Global Manufacturing Leaders Apart

Vembu urged observers to look beyond population size and cheap labour to understand what truly drives manufacturing dominance. He pointed out that countries such as Japan and Germany are industrial giants despite having much smaller populations and significantly higher labour costs than India.

“Notice how Japan and Germany are such huge manufacturing powers, with much smaller population than India and with vastly higher labour costs than India or even China,” Vembu said. He also highlighted that countries like Switzerland and the Netherlands consistently outperform their size in global manufacturing.

The Core Strength: Capital Goods and Precision Engineering

According to the Zoho chief, the real secret behind these countries’ success lies in their mastery of capital goods, including advanced and high-precision machinery. He added that they also excel in sophisticated manufacturing processes, advanced materials, and sensor technologies.

These sectors, Vembu explained, create significant value and allow nations to remain competitive even in high-wage environments. He also noted that China has been rapidly catching up in these areas while simultaneously transitioning into a high-wage economy.

What India Must Do Next

To raise income levels and secure a strong position in global manufacturing, Vembu stressed that India must invest deeply in modern industrial capabilities.

“India needs to master all these areas in order to be a truly great manufacturing nation and achieve high income for our people,” he said, expressing confidence in the country’s ability to do so. “We can do it.”

Vembu’s observations underline a crucial point: long-term manufacturing success is driven not by cheap labour, but by technological expertise, precision engineering, and process mastery. For India, the path to becoming a true manufacturing powerhouse lies in building depth, not just scale.