India’s Manufacturing Momentum
New Delhi
India’s manufacturing sector is set to play a defining role in the nation’s march toward becoming a $35 trillion economy by 2047, with growth underpinned by structural reforms, sectoral incentives, and resilient supply chains, the government said.
The sector has gathered strong momentum in recent months, reflected in upward GDP growth revisions by Fitch Ratings, the IMF, and S&P Global, alongside the S&P Global Manufacturing PMI touching a 16-month high. Manufacturing has shown remarkable resilience despite global uncertainties. Transformative policies such as the PLI scheme, the National Manufacturing Mission, and large-scale skill development initiatives are charting a clear course for industrial resurgence, an official statement noted.
According to government data, the Index of Industrial Production (IIP) grew 3.5% year-on-year in July, up from 1.5% in June. Meanwhile, the HSBC India Manufacturing PMI rose from 58.4 in June 2025 to 59.1 in July and 59.3 in August — its highest in 16 months — marking the sharpest improvement in operating conditions in over 17 years.
Exports have further reinforced this growth trajectory. Between April and August 2025, total exports rose 6.18% to $349.35 billion, with merchandise exports alone registering a 2.52% increase compared to the same period last year.
With the sector expected to touch ₹87.57 lakh crore ($1 trillion) by FY26, analysts project it could add over ₹43.43 lakh crore ($500 billion) annually to the global economy by 2030. The August unemployment rate among men also eased to a five-month low of 5%.
As global supply chains undergo realignment, India is uniquely positioned to emerge not only as the factory of the world but also as an innovation and leadership hub, the government emphasized.
