New Delhi: India’s manufacturing sector has recorded strong growth in recent years, with the Gross Value Added (GVA) of manufacturing at constant prices registering a compounded annual growth rate (CAGR) of 10.88 per cent between 2022-23 and 2025-26, according to the Government of India.
The government has attributed the momentum to a combination of policy interventions and structural reforms aimed at strengthening domestic production, improving competitiveness and reducing dependence on imports. Manufacturing GVA grew 10.7 per cent in 2025-26, further consolidating the sector’s contribution to economic growth.
Among the key initiatives supporting the sector are the Production Linked Incentive (PLI) schemes, PM GatiShakti, the National Logistics Policy, the Semicon India Programme and programmes focused on electronics and MSMEs. These measures are designed to improve supply-chain efficiency, attract investment, encourage domestic value addition and expand India’s manufacturing capabilities.
The impact is increasingly visible across strategic industries. Under the Semicon India Programme, 12 manufacturing units had been approved with investments exceeding ₹1.64 lakh crore as of July 2026, including semiconductor fabrication and packaging facilities. Meanwhile, the PLI scheme for large-scale electronics manufacturing has attracted around ₹96,000 crore in investment across the mobile manufacturing ecosystem.
India’s manufacturing sector now accounts for around 16-17 per cent of GDP and supports more than 27 million workers, underscoring its importance to employment, exports and industrial development. Manufacturing output also expanded 7.8 per cent in June 2026, according to government data.
The government is increasingly positioning manufacturing as a pillar of India’s broader economic strategy, with emphasis on higher-value production, technology adoption, resilient supply chains and greater integration into global manufacturing networks.
The latest growth figures suggest that policy support is beginning to translate into stronger industrial capacity. The challenge ahead will be to sustain this momentum, deepen domestic value addition and enable Indian manufacturers—particularly MSMEs—to compete more effectively in global markets.