Based on a foreign brokerage, the aggressive manufacturing push, particularly in the electronics sector, driven partly by the reconfiguration of China-centric regional supply chains, can add 50-100 basis points to GDP annually until 2030. According to Tanvee Gupta-Jain, chief economist at UBS Securities India, if the country continues to benefit from the ongoing China+1 supply chain shifts and structural reforms, GDP could rise to 6.25-6.75 percent annually or add 50 basis points by 2030.

In the most optimistic scenario, which she refers to as a blue-sky scenario, GDP growth is expected to be 6.75-7.25 percent, or 100 basis points higher than the current rate. Direct job creation could increase by 1-4 million per year. According to Gupta-Jain, the current manufacturing push under various PLI (production-linked incentive) schemes, particularly for electronics, will yield the best results when the country develops a complete ecosystem for local sourcing of imported components.

The analyst was incorrectly quoted as saying that the manufacturing push is unlikely to yield tangible results for growth in the near term.

India's policy reforms and improved macroeconomic stability are obvious advantages. According to her, Malaysia excels in semiconductors, while Indonesia and Thailand show promise in the electric vehicle supply chain.