Why Manufacturing Now? India’s Growth Opportunity

India’s manufacturing sector is entering a structural growth phase, supported by strong government initiatives like PLI schemes, infrastructure spending, and the ‘Make in India’ push. At the same time, global companies are diversifying supply chains, and India is becoming a key beneficiary.

Opportunity areas with focus on Manufacturing theme currently.

focus on Manufacturing theme currently.

• Structural Growth Story: India’s manufacturing sector is entering a multi-year capex and earnings upcycle, historically a strong phase for wealth creation.

• Strong Policy Tailwinds: Government initiatives like PLI schemes, infra spending, GST reforms are driving long-term competitiveness and demand.

• Capex Revival = Growth Trigger: Sustained government infrastructure spending has begun to crowd in private investment.

• Global Advantage: A weaker currency enhances export competitiveness and can attract foreign investment. This is particularly relevant as global companies diversify supply chains—benefiting sectors such as auto ancillaries (amid Europe-related shifts) and supporting outsourcing opportunities linked to the US data centre capex cycle.

• Macro = Risk + Opportunity:

  - Crude oil and gas supply issue will push the inflation and reduce the consumption

  - Rupee depreciation boosts exports & attracts global investments

  High-Growth Opportunities:

  • Auto ancillaries are well-positioned, aided by increasing content increase led by regulations shift in EV, strong domestic demand, diversification into defence, aerospace, and semiconductors, and rising export opportunities. Supply chain disruptions in Europe, largely due to tariffs, are accelerating a shift towards Indian manufacturers.

• Energy transition plays are gaining momentum, with increased government focus on T&D, electric vehicles, and renewables, especially after recent geopolitical developments.

• Data centre-linked manufacturing is another emerging opportunity, as the ongoing US capex cycle is driving outsourcing demand, benefiting Indian players.

Fund Positioning

As a high-beta play on growth, sectors such as industrials, infrastructure, and domestic cyclicals — tend to outperform when capex and earnings momentum strengthen.

• With over 55% exposure to Autos & Auto Components (28%) and Capital Goods (28%), the portfolio is firmly aligned with India’s capex revival and industrial growth cycle. These sectors are direct beneficiaries of policy support (PLI, infra push) and investments in energy transition (T&D, industrials), defence provide exposure to emerging, high-growth manufacturing opportunities beyond traditional sectors.
• The allocation to metals, chemicals, and export-oriented auto ancillaries positions the fund to benefit from global supply chain diversification, currency advantages, and outsourcing trends (including US data centre capex).
• Top holdings such as M&M, BEL, Cummins, GE T&D, and Sona BLW reflect a focus on market leaders and niche players with strong earnings visibility and export linkages.

Top sector and stock holdings:

Source: Axis MF Internal Research. Data as of May 2026. Current portfolio allocation is based on the prevailing market conditions and is subject to changes depending on the fund manager’s view of the equity markets. Sector(s) / Stock(s) / Issuer(s) mentioned above are for the purpose of disclosure of the portfolio of the Scheme(s) and should not be construed as recommendation. For full portfolio and other details of the fund please link the link mentioned : https://www.axismf.com/mutual-funds/equity-funds/axis-india-manufacturing fund/im-dg/direct

Data as of 31st May 2026. Disclaimer: Past performance may or may not be sustained in the future. Sector(s) / Stock(s) / Issuer(s) mentioned above are for the purpose of disclosure of the portfolio of the Scheme(s) and should not be construed as recommendation. The fund manager(s) may or may not choose to hold the stock mentioned, from time to time. Investors are requested to consult their finances, tax and other advisors before taking any investment decision(s). Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Axis Bank Ltd. (liability restricted to Rs. 1 Lakh). Trustee: Axis Mutual Fund Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the AMC). Risk Factors: Axis Bank Limited is not liable or responsible for any loss or shortfall resulting from the operation of the scheme. This document represents the views of Axis Asset Management Co. Ltd. and must not be taken as the basis for an investment decision. Neither Axis Mutual Fund, Axis Mutual Fund Trustee Limited nor Axis Asset Management Company Limited, its Directors or associates shall be liable for any damages including lost revenue or lost profits that may arise from the use of the information contained herein. No representation or warranty is made as to the accuracy, completeness or fairness of the information and opinions contained herein. The AMC reserves the right to make modifications and alterations to this statement as may be required from time to time.