Manufacturing Boom in India: Salaries in Production, Supply Chain & R&D (2025)

India's ambition to become a global manufacturing powerhouse is reshaping the employment landscape, particularly in the production, supply chain, and research & development (R&D) sectors. With programs like "Make in India" and a renewed emphasis on self-reliance, the nation is experiencing a resurgence in manufacturing. This shift is not only reshaping industries but also redefining compensation structures for professionals in production, supply chain, and R&D roles.

This blog examines how India's manufacturing development is influencing compensation patterns and what companies can do to attract top talent, using data from the India Salary Guide 2025 for contract and permanent manufacturing employment.

The Manufacturing Boom in India

India’s manufacturing sector is experiencing unprecedented growth, driven by government policies, foreign investments, and a robust domestic market. The sector’s contribution to GDP is projected to rise significantly, with electronics, pharmaceuticals, automotive, and renewable energy leading the charge.
A major factor in enticing international manufacturers to establish operations in India has been the 'Make in India' campaign. As companies expand their manufacturing footprint in India, the need for skilled professionals in production, supply chain, and R&D has surged.
The manufacturing renaissance is all about increasing output and adopting advanced technologies like Industry 4.0, automation, and green manufacturing. These advancements require specialized skills, pushing employers to rethink compensation strategies to attract and retain talent. As companies strive to enhance efficiency and innovation, the need for specialized talent has become more pronounced. The India Salary Guide 2025 highlights that salaries in these roles are rising faster than the national average, reflecting the premium for expertise in high-demand areas.

Premium for Specialized Manufacturing Skills

India’s effort to establish itself as a global manufacturing hub is significantly reshaping salary structures in manufacturing, supply chain, and R&D roles. According to the PERSOLKELLY India Salary Guide 2025, professionals in specialized manufacturing roles are seeing substantial salary premiums:
Production/Manufacturing
Recent surveys indicate a positive trend in salary increments within the manufacturing sector. Given their vital significance in India's economy, the engineering and manufacturing sectors are expected to offer a 10% pay boost in 2025, according to Aon's 30th Annual Salary Boost and Turnover Survey.
Production roles, ranging from plant managers to quality control engineers, are at the heart of India’s manufacturing growth. The India Salary Guide 2025 for permanent roles indicates that production managers in sectors like electronics and automotive command salaries ranging from INR 18 to 50 lakh per annum. The evolving manufacturing landscape has led to a premium on specialized skills. Professionals with expertise in areas such as lean manufacturing, Six Sigma, and advanced automation are commanding higher salaries.
Supply Chain
As India aims to become a global supply chain hub, roles in logistics, procurement, and supply chain management are gaining prominence. According to the India Salary Guide 2025, supply chain managers make between INR 18 and INR 40 lakh a year, while senior positions in multinational corporations can draw up to INR 50 lakh. Contract-based logistics coordinators, crucial for managing just-in-time inventories, earn INR 3 INR 6 LPA.

According to PERSOLKELLY’s salary guide, there will be an 18-20% increase in temporary staffing for warehouse operations, delivery, and inventory management. The guide highlights a growing demand for skills in supply chain analytics, blockchain for traceability, and sustainable logistics.

Professionals with certifications like APICS or expertise in digital supply chain tools command a 27% salary premium. For instance, a supply chain analyst's salary can increase by 9.9% in 2025, with firms giving incentives and bonuses.
Research & Development (R&D)
India's goal to advance its manufacturing value chain is based on research and development. With a focus on innovation and product development, companies are investing heavily in R&D capabilities. From developing EV batteries to biopharmaceuticals, Indian firms are investing heavily in innovation. R&D managers in industries like pharmaceuticals and renewable energy make between INR 24 lakh and 1 Cr a year, according to the India Salary Guide 2025 for permanent positions. Additionally, India’s green economy is set to drive employment, with 3.7 million renewable energy jobs predicted for FY 2025.
The guide notes that R&D professionals with patents or experience in cross-functional innovation hubs are among the highest-paid, with some earning bonuses tied to project outcomes.

Factors Driving Salary Growth

Several factors work together to drive salary benchmarks upward:
● Skill Scarcity: The India Salary Guide 2025 emphasizes that only 15-20% of India’s engineering workforce possesses skills in emerging technologies like AI, IoT, or advanced robotics. This low supply of skilled professionals increases the overall pay premium across industries.
● Global Competition: Multinationals setting up manufacturing units in India are benchmarking salaries against global standards, pushing local firms to follow suit.
● Policy Push: Government incentives like Production-Linked Incentive (PLI) and tax breaks for R&D are encouraging firms to invest in high-skill roles, indirectly boosting salaries. The guide notes a 12% average salary increase across manufacturing roles in PLI-supported sectors.
● Employee Expectations: Today’s professionals prioritize career growth, work-life balance, and environmental, social, and governance (ESG) alignment. Employers offering these benefits alongside competitive pay are winning the talent race.
Regional Salary Variations
Salary benchmarks vary across different regions in India, influenced by factors such as the cost of living, industrial presence, and talent availability. For example, junior and mid-level positions in Bengaluru, Delhi, and Mumbai earn more as compared to other cities.

Conclusion

The Indian economy is expected to continue growing well into 2025, with manufacturing, renewable energy, and services as strong drivers. The government’s emphasis on initiatives like Make in India and PLI schemes targeting manufacturing across textiles, electronics, and the automotive industries is driving growth. PLI schemes are expected to add 10-15 lakh jobs in FY 2025, with a huge contribution from domestic manufacturing hubs across Maharashtra and Tamil Nadu.
As the India Salary Guide 2025 illustrates, salaries in production, supply chain, and R&D roles are rising, driven by the demand for specialized skills and global ambitions. As companies continue to invest in manufacturing capabilities, the focus on attracting and retaining top talent through strategic compensation will remain a critical factor for success. For detailed salary benchmarks and role-specific compensation data, refer to the PERSOLKELLY India Salary Guides for 2025.