Daijiworld Media Network - New Delhi
New Delhi, Feb 12: India’s manufacturing sector has recorded robust growth in recent quarters, underpinned by a steady shift toward higher-value production, stronger industrial infrastructure, and increased adoption of technology and formalisation, according to an official statement released on Thursday.
As per the Economic Survey 2025–26, manufacturing gross value added (GVA) expanded by 7.72 per cent in the first quarter of FY26 and accelerated to 9.13 per cent in the second quarter, reflecting sustained momentum in the sector.
A key highlight of the Survey is the rising contribution of medium- and high-technology industries, which now account for 46.3 per cent of India’s manufacturing value added. This marks a gradual but significant transition toward more sophisticated and technology-driven production systems.
The statement noted that India’s global industrial standing has also improved. The country climbed to the 37th position in the Competitive Industrial Performance (CIP) Index in 2023, up from 40th place in 2022, signalling enhanced competitiveness in global manufacturing.
Manufacturing is being positioned as a central pillar in India’s long-term goal of becoming a $35 trillion economy by 2047. The government attributed the sector’s progress to ongoing reforms, targeted industry-specific initiatives, and efforts to build resilient supply chains.
The Union Budget 2026–27 has further bolstered the sector through measures aimed at encouraging investment, promoting innovation, upgrading infrastructure, and strengthening the broader industrial ecosystem.
Industrial activity has continued to gain traction, with real industry GVA rising 7 per cent year-on-year in the first half of FY26. This growth trend extended into the latter part of the year, as industrial production surged 7.8 per cent in December 2025 — the fastest pace in more than two years — following a revised 7.2 per cent growth in November.
According to government data, the December expansion was largely driven by manufacturing, which grew 8.1 per cent during the month. Within the sector, computer and electronic products registered a sharp increase of 34.9 per cent, motor vehicles and trailers rose 33.5 per cent, and other transport equipment expanded 25.1 per cent.
Forward-looking indicators also point to continued strength. The manufacturing Purchasing Managers’ Index (PMI) has remained firmly above the 50-mark — indicating expansion — since March 2023. In January 2026, the PMI stood at 55.4, exceeding its long-term average and suggesting sustained improvement in manufacturing activity.