India's Manufacturing Sector Bolsters Economic Growth and Self-Reliance with Robust Performance
India's manufacturing sector has emerged as a cornerstone of the nation's economic progress and self-reliance, playing a pivotal role in GDP contribution and employment generation. According to recent government data, the sector now accounts for approximately 16-17 percent of the GDP and provides employment to over 27 million workers. This robust growth is underpinned by a compounded annual growth rate (CAGR) of Manufacturing Gross Value Added (GVA) at constant prices, which stood at an impressive 10.88% during the period from 2022-23 to 2025-26, based on the revised series with 2022-23 as the base year.
The government's 'Make in India' vision, implemented over the past 12 years, has been instrumental in reshaping various industries and establishing India as a significant global manufacturing hub. Key sectors such as defence equipment, textiles, pharmaceuticals, medical devices, and heavy machinery are now producing world-class products for both domestic and international markets. Further accelerating this momentum are several government initiatives, including the Production Linked Incentive (PLI) scheme, PM GatiShakti, the National Logistics Policy, and programs targeting the electronics and MSME sectors. These policy supports, coupled with increasing private participation, continue to strengthen the foundation of India's manufacturing capabilities, with merchandise exports reaching USD 44.24 billion in July 2026.
