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Chennai’s Manufacturing Might: Driving India’s Growth Story

Chennai is rapidly garnering attention as an emerging player in India’s manufacturing growth story. With its deep-rooted industrial base and strong infrastructure, the city is driving national progress—particularly in automotive—making it a natural link to the country’s rising GDP and global economic standing.

According to the World Economic Outlook (April 2025) released by the International Monetary Fund (IMF), India is currently the fourth-largest economy in the world, with a nominal GDP projected at US$ 4.19 trillion and an expected growth rate of 6.2 percent in 2025, highlighting its stature as one of the fastest-growing nations on the global stage.

Taking a closer look at the country’s rising GDP, Muralidhara Rao, Director, Ace Designers Ltd - Machining Centre Division, breaks it down and highlights the major contributing factor. “If you look at our country’s GDP growth, the manufacturing sector currently contributes approximately 16 percent,” he outlines.

Moreover, India holds a strong position in the global heavy vehicles sector as it is the largest tractor producer, second-largest bus manufacturer, and third-largest heavy truck manufacturer. The country’s auto component industry, an important sector – valued at US$ 57 billion in 2023 and expected to grow to US$ 85 billion by 2026 as per Brickwork Research dated December 2024 – contributes significantly to employment and GDP.

Auto Component Boom: Chennai at the Core

Tamil Nadu, with major cities like Chennai and Coimbatore at its core, accounts for 35 percent of India's auto component production Home to around 100 major auto component manufacturers, including global giants Visteon and Delphi and key players such as Bharat Forge and Motherson Sumi Systems that have established a strong manufacturing ecosystem in the region. The state secured US$ 2.209 billion in investment proposals in 2022-23, showcasing its leadership in electric vehicle production.

Adding to that, Rao emphasizes that Chennai—widely recognized as the ‘Detroit of India’—accounts for 18.3 percent of the country’s total manufacturing output. Moreover, as an emerging hub in the automotive sector, the city accounts for 30 percent of India’s automobile production and 35 percent of its component manufacturing, outlining its role in driving national economic growth.

The industrial suburb of Ambattur, Chennai further strengthens the city’s position, with over 1,000 MSMEs supported by 2,500 ancillary industries—making it an important cluster in India’s manufacturing ecosystem.

Why AMCEE 2025 in Chennai Is a Must‑Attend

Given Chennai’s contribution to the country’s manufacturing resurgence, AMCEE 2025 emerges as the must-attend platform for the entire manufacturing community. The event will gather OEMs, Tier‑I to Tier‑III suppliers, EV innovators, and policy makers in Ambattur, Chennai—-the center of India’s manufacturing prowess.

More than just a trade show, AMCEE 2025 will serve as a powerful catalyst for collaboration, innovation, and investment. With the city setting benchmarks in automotive and engineering excellence, the event offers an unmissable opportunity to witness the future of Indian manufacturing unfold. As the nation accelerates towards becoming a global industrial powerhouse, Chennai is powering the momentum.