Himanshu Shah Highlights India’s Future in Manufacturing, Deep Tech, and Skills Development
When discussing India’s economic prospects, Himanshu Shah, a prominent investor from North Carolina, expresses a blend of optimism and realism. Speaking at the Indiaspora Forum 2026 near Bengaluru, Shah emphasized that India’s true potential lies in its evolving industrial and skills infrastructure, despite facing challenges. He highlighted the need for effective execution and government support to harness the country’s entrepreneurial spirit and young workforce, particularly in the manufacturing sector.
India’s Manufacturing Landscape
Shah pointed out that India’s manufacturing capabilities are gradually improving, even as the country remains heavily reliant on imports from China. He noted that India has a significant trade deficit with China, exceeding $100 billion, which underscores the need for enhanced domestic production. Despite this, Shah remains hopeful, stating that there is substantial progress occurring beneath the surface. He believes that the execution of innovative ideas will be crucial for India’s economic growth. Shah remarked, “India is full of ideas. It’s the execution of it… that is going to play a bigger role over here.” He also acknowledged the government’s increasing support for new industrial zones and manufacturing clusters, which are essential for building capacity and reducing dependence on foreign imports.
Public-Private Partnerships for Future Industries
During the panel discussion, Shah advocated for a more aggressive approach from the Indian government in fostering future industries through targeted public-private partnerships. He referenced a billion-dollar fund established in 2016 that led to the creation of over 200,000 startups in India. Shah suggested that the government should consider launching multiple funds to support various sectors, including marine technology, space, and machine tools. He emphasized that these investments should not only focus on financial returns but also aim to create structured collaborations between the state, private capital, and the Indian diaspora. Shah believes that such partnerships could significantly enhance India’s industrial capabilities and foster innovation.
Challenges and Opportunities Ahead
While Shah’s outlook is largely positive, he did not shy away from addressing the bureaucratic hurdles that continue to impede business operations in India. He criticized the complex processes involved in starting a business, stating, “It is still there… You need ~27 forms to open a bank account in India still today in 2026.” This bureaucratic inefficiency, he argues, remains a significant barrier to entrepreneurship and economic growth. However, he also pointed to an “industrial renaissance” at the state level, where various Indian states are implementing land incentives and sector-specific support to attract manufacturing projects. Shah highlighted the potential for domestic production in sectors like titanium dioxide, where India currently relies on imports despite having substantial demand.
The Role of the Indian Diaspora
In the latter part of the discussion, Shah expanded on the vital role that the Indian diaspora can play in India’s economic development. He urged overseas Indians to engage more actively through remittances, philanthropy, and early-stage investments. Shah emphasized the importance of leveraging the skills of retired professionals and engineers from the diaspora to help upgrade India’s industrial base. He suggested that a public-private partnership initiative could facilitate this collaboration, particularly as India aims to enhance its manufacturing capabilities. Shah concluded that the future of India’s growth hinges on effectively connecting capital, skills, and execution, and events like the Indiaspora Forum can be instrumental in fostering these connections.
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