Global manufacturing supply chains are being decisively rewired. What began as a response to pandemic-era disruptions has evolved into a deeper structural shift driven by geopolitics, trade policy, and rising strategic competition with China. Across sectors, sourcing decisions are now shaped as much by resilience and geopolitical risk considerations as by cost. Iron castings, and precision machining that convert them into assembly ready components, have now moved to the centre of this realignment.

Escalating geopolitical trade tensions, export controls, and periodic policy-led shutdowns in China have increased scrutiny on supply chain concentration. At the same time, US and Europe are grappling with foundry closures driven by high labour costs, energy inflation, and environmental compliance. As a result, original equipment manufacturers (OEMs) are actively shifting toward multi-hub sourcing strategies, often framed as China+1, US+1, or EU+1 themes.

This shift creates an opening for India. With geopolitical alignment to Western markets, competitive cost structures, improving foundry and precision machining capabilities, and expanding capacity, organized Indian iron casting and precision machining suppliers are increasingly viewed as credible long-term sourcing partners. India today accounts for roughly 13 percent of global casting production, up from around 12 percent in 2019, even as the shares of US and Europe continue to decline. 

What differentiates the current opportunity from earlier export cycles is the transformation underway within India’s foundry ecosystem itself. Historically, the sector was highly fragmented, with thousands of small, sub-scale units lacking the balance sheets, quality systems, and process discipline required by global OEMs. Over the last five to six years, this structure has begun to change decisively.

Industry estimates suggest that the number of operating foundries has declined to 4,500-5,000 in FY25, from over 7,000 five to six years back. Smaller, under-capitalized players have exited, while organized foundries have expanded, absorbing skilled manpower, technology, and customer relationships. As a result, it is estimated that the organized segment’s share of output to rise from approximately 35 percent today, to cross 50 percent by FY30. Strategic acquisitions by players such as Kirloskar Ferrous Industries reflect this shift toward integrated, professionally managed foundry groups capable of long-term partnerships.

An important element of this transformation is the move toward integrated casting and machining under one roof. Castings and forgings typically require extensive CNC-based machining to meet final tolerances and surface specifications. Historically, machining was often outsourced, introducing variability in quality control, coordination complexity, and longer lead times. Organized players such as JS Autocast, Sandfits, and Zanvar are increasingly internalizing machining operations, investing in advanced CNC lines, metrology, and automation to deliver fully machined, assembly-ready components. This integration trend is not limited to foundries adding machining. Machining companies such as Craftsman Automation have also expanded upstream into casting to deepen program participation and improve supply coordination. 

These capability upgrades are translating into tangible export momentum. 

India’s casting exports have grown at around 2 percent compound annual growth rate (CAGR) since FY20, despite global disruptions, with the US emerging as the largest destination. In 2024, US accounted for roughly 30 percent of India’s casting exports, up from 27 percent in 2019.

At the firm level, scale is becoming increasingly visible. Multiple Indian foundries now report annual casting revenues exceeding INR 1,000 crore, including Kirloskar Ferrous, Nelcast, Ghatge Patil Industries, and Ashok Iron Works, as reported to the Ministry of Corporate Affairs. India also stands as the world’s second-largest casting producer, with an output of approximately 12 million tonnes. Together, these indicators are reinforcing OEM confidence in India as a credible, long-term sourcing hub.

The Path Forward for Indian Companies

While global tailwinds are favorable, capturing disproportionate value will require deliberate action. Organized Indian foundries must continue to broaden their technical envelope by investing in medium and large castings, complex geometries, and higher metallurgical grades. Downstream value addition through integrated machining, subassemblies, and finished components will increasingly determine supplier selection, particularly in North America and Europe.

Equally critical is market proximity. Strengthening on-ground sales, and application engineering teams in the US and Europe will be essential to influencing request for quotations (RFQs) early and securing long-term nominations. Operational excellence on metrics such as on-time delivery, and rejection rates will further differentiate long-term sourcing partners from transactional suppliers.

Finally, sustainability readiness is moving from a hygiene factor to a competitive differentiator. Energy efficiency, traceability, and carbon transparency will increasingly shape sourcing decisions, particularly in Europe, where regulations such as the Carbon Border Adjustment Mechanism (CBAM) are coming into force.

India’s iron casting and precision machining industry stands at a rare intersection of global supply chain reconfiguration and domestic capability transformation. For organized players willing to invest ahead of demand, the coming decade offers the opportunity to move from alternative suppliers to indispensable global partners. The window is open, and execution will determine who leads.

Disclaimer: This article is based on publicly available information (including platforms such as TradeMap, Volza and more) and the authors’ professional experience and market analysis. For questions regarding the underlying sources or analytical methodologies, please reach out to the author directly. The analysis reflects market trends and observations and is intended for general informational purposes only. It does not constitute investment, legal, or financial advice.