India’s future lies in manufacturing, deep technology and skill building: Himanshu Shah
When it comes to India’s economic future, few people are as optimistic and forthright as Himanshu Shah. For the North Carolina investor, the nation’s greatest opportunity lies not in rhetoric, but in execution. Speaking at a panel during the Indiaspora Forum 2026 on the outskirts of Bengaluru on Monday, the founder of Raleigh-based Shah Capital argued that India’s real promise can be seen in the industrial and skills infrastructure taking shape below the surface, even if the broader picture remains uneven. Pointing to the government’s growing support for large-scale manufacturing clusters and new industrial zones, Shah said the deeper story is one of capacity building. “India is full of ideas. Its implementation will play a big role here,” Shah said. “Your skills are also improving amazingly. Because still, a lot of manufacturing is not done in India.” He linked that manufacturing gap to India’s continued heavy reliance on Chinese imports, even as its entrepreneurial energy and young workforce continue to grow. Despite China’s per capita income being 5 times higher, India still runs a significant trade deficit with China of over $100 billion, which is indicative of the skills and production advantages China has developed over time, he said. Shah also emphasized that India is progressing. “There’s an amazing improvement happening on that front,” he said, even if “it doesn’t look great on the surface, but underneath, I’m very excited.” Moderated by MR Rangaswamy, founder of Indiaspora, the panel also included Ravneet Mann, partner at Stride Ventures and Sridar Iyengar, founder of 360Plus. Speaking about capital allocation and public policy, Shah argued that the Indian government should think more aggressively about promoting industries of the future through targeted public-private partnerships. “First of all, let’s talk about the fund which was set up by the Government of India in 2016. It was a $1 billion fund and resulted in over 200,000 start-ups in India. Recently, another billion-dollar-plus fund was set up for AI and deep tech.” Shah said, ”Frankly speaking, the Indian government should set up 10 to 20 funds out of this. Marine technology, space, drones, machine tools, materials science, the list goes on.” For Shah, such investments are not just about financial returns. They are also a way of creating structured cooperation between the state, private capital and the Indian diaspora.“And by bringing public and private partnerships on top of that, expatriates can really contribute, including myself,” he said. He also highlighted what he described as an “industrial renaissance” at the state level, with some Indian states using land incentives and sector-specific support to attract manufacturing projects. He said that Bihar, Uttar Pradesh, Odisha and Gujarat are among those states which are starting to use such models. To illustrate the scale of the opportunity, Shah pointed to titanium dioxide, a material used in products such as paints and coatings. He cited the example of a potentially large company to show how India can replace imports with domestic production if the economics and policy support are aligned. Shah said that “the demand for titanium dioxide in India is 400,000 metric tonnes. And… the country produces only 70,000-80,000 tonnes.” [tons]. And by the way, it imports the rest from China, if you look at the cost of building it, today assuming that you have free land in some of these states that I have mentioned, the project becomes very economical and interesting. He suggested that this example offers a small glimpse of what might be possible if India truly became more supportive of entrepreneurs and manufacturers. “So, this is just a glimpse of what is possible in India, if the government starts actually working for entrepreneurs instead of being a hindrance,” he said. But Shah’s optimism came with a familiar caveat. He acknowledged that India’s bureaucracy remained a major constraint on enterprise, and he did not soften that criticism. “It’s still there,” he said. “It’s very disappointing. Even today in India you need ~27 forms to open a bank account in 2026. It doesn’t make sense. So, there are a lot of things this country needs to work on. But I see signs of that.” In the concluding part of the discussion, Shah scoped out the broader role of the Indian diaspora beyond investment and manufacturing. Asked what he wants the diaspora to do by connecting with India, he pointed to remittances, philanthropy and early-stage investments, but returned most strongly to one theme: skills. He suggested that India should actively utilize the expertise of older, often retired engineers and professionals in the diaspora to help upgrade the country’s industrial base.“I think one area, and philanthropy, really, on top of that, is job skills. And I really want to get back to that,” Shah said. “If there’s a public and private partnership, maybe like the 2047 initiative, you can really bring those people in and give, you know, whether it’s in engineering, in science, in manufacturing.” He said many Indians who moved abroad pursued tech careers and now had the experience India needed if it wanted to make more sophisticated products at home.“A lot of these people who moved out of India were engineers. And a lot of them are retired in their 50s, 60s and 70s and are looking for something to do,” he said. “Because this country needs that skill to make good quality products.” For Shah, the future of India’s growth story will depend not just on government policy or investor appetite, but also on whether the country can combine capital, skills and execution. He suggested that events that bring together diaspora leaders, investors and policy makers could help do this. “And I think an event like this will play a big role in getting something done on that front,” he said, referring to the IndiaSpora Forum 2026.(By arrangement with The American Bazaar, www.americanbazaaronline.com)
