New Delhi
India’s industrial sector continues to demonstrate resilience and strong momentum despite an evolving and challenging global environment, supported by sustained reforms in infrastructure, logistics, ease of doing business, and innovation systems, the Economic Survey 2025-26 stated on Thursday.
According to the Survey, the next phase of India’s industrialisation will require a calibrated shift in strategy. It stressed the need to move away from a model largely centred on import substitution towards one focused on achieving scale, improving global competitiveness, fostering innovation, and enabling deeper integration into global value chains (GVCs). Rather than pursuing complete self-reliance across every segment, the Survey emphasised building strategic resilience through diversification and strengthening domestic capabilities.
The Survey highlighted that this transition would require a significant increase in private sector investment in research and development, technology adoption, skills enhancement, and robust quality systems. Such measures, it noted, are essential for Indian industry to compete effectively in global markets while adapting to technological change and shifting supply chains.
On performance indicators, the Economic Survey reported robust growth in manufacturing activity during the current fiscal. Manufacturing Gross Value Added (GVA) expanded by 7.72 per cent in the first quarter and 9.13 per cent in the second quarter of FY26, driven largely by ongoing structural shifts within the sector. These include a gradual transition toward higher-value manufacturing segments and increased formalisation across firms.
Overall industrial performance has also strengthened. Industry GVA grew by 7.0 per cent year-on-year in real terms during the first half of FY2025-26, marking a clear pickup from the 5.9 per cent growth recorded in the previous fiscal year, FY2024-25. The Survey, tabled in Parliament by Nirmala Sitharaman, attributed this improvement to policy continuity, infrastructure-led development, and better capacity utilisation.
The availability of industrial infrastructure has improved significantly through corridor-led development, industrial parks, and logistics upgrades. Greater adoption of digital technologies and compliance with formal systems have further enhanced productivity and efficiency across manufacturing units. Notably, the Survey pointed out a positive shift in India’s manufacturing profile.
