This study examines how open innovation has emerged as a critical strategic approach enabling manufacturing firms to leverage external knowledge, technologies, and partnerships to enhance competitiveness in an increasingly dynamic environment and practices enhance the competitiveness of manufacturing firms in India, an important emerging economy characterized by rapid industrial transformation and increasing global integration. While existing research largely focuses on developed economies, empirical evidence from emerging economies such as India remains limited. This study examines the role of open innovation practices in enhancing the competitiveness of manufacturing firms in India, with particular attention to the mediating role of technological capability. Drawing on Open Innovation Theory and the Dynamic Capabilities perspective, data were collected from 427 manufacturing firms across multiple industrial sectors in India using a structured questionnaire. Structural equation modeling (PLS-SEM) was employed to test the proposed hypotheses. The results indicate that both inbound and outbound open innovation practices have a significant positive impact on firm competitiveness. Furthermore, technological capability partially mediates this relationship, underscoring the importance of internal capabilities in extracting value from open innovation. The study contributes to the growing body of open innovation literature by offering empirical insights from an emerging economy and provides practical implications for managers and policymakers seeking to enhance manufacturing competitiveness through collaborative innovation strategies