India’s USD 1 trillion industry by 2025-26 is a pillar of economic development, yet poor infrastructure is a key stumbling block. Logistical costs are high, there are power outages, and there are old facilities, experts alert. Overcoming these is important to maintain India’s manufacturing boom and realize its USD 5 trillion economy target, says recent industry reports. Logistics expenses, at 14-18% of GDP against an international benchmark of 8%, are the biggest roadblock. Overcrowded ports, such as Jawaharlal Nehru Port, and inefficient last-mile connectivity slow down cargo, increasing the cost of doing business for producers in clusters such as Sri City. Reliability of power is also a concern, with 30% of plants experiencing outages, according to a 2024 Ficci survey. Small and medium enterprises (SMEs) in Tier-2 cities like Ludhiana often rely on costly diesel generators, inflating production costs. Outdated industrial estates, many over 50 years old, lack modern amenities, deterring investors. Land acquisition delays further stall new projects, with 40% of industrial park proposals stuck due to regulatory hurdles, Invest India notes. Digital infrastructure is also behind. Just 20% of SMEs employ cloud-based systems, restricting automation uptake essential for Industry 4.0. Cyber threats, with 43% of manufacturers having experienced breaches in 2024, imperil data-led operations. These undermine competitiveness, particularly against nations such as Vietnam, where logistical expenses are lower. These challenges are being addressed by government initiatives. The PM Gati Shakti Plan, with INR 11,110 billion invested in 2024-25, is enhancing highways, railways, and ports, reducing transit times by 15% in cities such as Coimbatore. The National Infrastructure Pipeline aids 12 new industrial corridors, enhancing connectivity to Tier-2 centers like Bhubaneswar. Power reforms, such as 24/7 supply in Gujarat, will decrease outages. The Digital MSME Scheme subsidizes IoT and cloud tools, while Skill India empowers workers for smart factories. Industry partnerships are the lifeblood. Public-private partnerships, like Tamil Nadu’s Oragadam special economic zone, upgrade 5G and green energy across Oragadam’s industrial estates. These MSMEs can pool resources for digital infrastructure, like in Rajkot clusters, to save costs. De-parceling land approvals, like those in Madhya Pradesh’s single-window system, accelerates construction. Cybersecurity courses and low-cost antivirus software can safeguard data, experts recommend. High stakes. Effective infrastructure would save USD 50 billion per annum, according to CII, and bring in additional FDI, which reached USD 17.96 billion during FY23-24. “Strong infrastructure is not up for debate,” opines Anil Sharma, policy analyst, Nasscom. “It’s the backbone of our overseas aspirations.”With India aiming for USD 776.68 billion in exports, these issues will need to be overcome to leverage industrial potential.