The post-COVID-19 era has forced Indian manufacturing firms to accelerate digital transformation. Despite large investments in Industry 4.0 technologies, many firms report stagnant productivity. This study proposes that the missing link is leadership and workforce capability. Drawing on Dynamic Capabilities Theory, this paper examines the relationship between Digital Leadership, Workforce Agility, and Organizational Performance. Using survey data from 384 managers across 120 manufacturing firms in Maharashtra and Gujarat, Structural Equation Modeling shows that Digital Leadership significantly enhances Workforce Agility (β = 0.61, p < 0.001), which in turn improves Performance (β = 0.54, p < 0.001). Workforce Agility fully mediates this relationship. The study introduces the “D-LA-P Framework” for manufacturing leaders and discusses implications for HR and operations strategy in the context of Make in India 2.0.