India's manufacturing industry is undergoing a significant transformation towards deep tech localization, supported by robust domestic demand and government initiatives. Rakesh Sethia, managing director at HDFC AMC, highlights the emergence of structural winners in sectors such as electronics manufacturing services (EMS), aerospace, and auto ancillaries. He stresses the importance of careful stock selection in the context of rising valuations, recommending a focus on companies with strong execution capabilities, quality business models, and relevance in export markets. This shift reflects India's growing emphasis on self-reliance and global competitiveness in manufacturing. India's manufacturing sector is transitioning to deep tech localization, fueled by robust domestic demand and government incentives.