The manufacturing sector in India has emerged as a significant contributor to the country’s economic growth, with a GDP contribution of around 16-17%. Various key sectors such as automotive, electronics, food processing, textiles, defence, and pharmaceuticals have played a crucial role in enhancing productivity and efficiency in the manufacturing sector through digital transformation and technological innovation. India has been recognized as the best performer among the top world manufacturers, with a continued momentum in manufacturing PMI values from 2021 to 2024.
Policy initiatives such as Make in India, PLI Scheme, PM Mitra Textile Parks, Bulk Drug Parks, and other strategic measures have been implemented to promote manufacturing production and exports, positioning India as a global manufacturing hub. The government’s focus on addressing logistics gaps and reducing logistics costs to enhance efficiency has further bolstered the growth of the manufacturing sector in the country. The Make in India initiative, launched in 2014, has provided fruitful results by encouraging investments, fostering innovation, and building world-class infrastructure.
India’s vision of becoming ‘Atmanirbhar’ has been further supported by the PLI Schemes for 14 key sectors, aimed at enhancing manufacturing capabilities, attracting investments, ensuring efficiencies, creating economies of scale, enhancing exports, and integrating India into global value chains. The transformative growth of the manufacturing sector has showcased a significant increase in growth rates from 3% in 2011-12 to 5.5% in 2023-24, with a V-shaped recovery post the pandemic period.
The share of manufacturing in India’s Gross Value Added (GVA) has also seen a remarkable increase, from 14.7% in 2019-20 to 17.3% in 2022-23, indicating a strong post-pandemic recovery driven by increased investments and supportive government policies. Promising sectors such as electronics, textiles, pharmaceuticals, gems and jewellery, and food processing have been driving growth in the manufacturing industry, propelling India’s economic advancement and international competitiveness.
The electronics industry has witnessed significant growth, with India becoming the second-largest mobile phone manufacturer globally and a hub for semiconductor design. The textile sector, pharmaceutical industry, gems and jewellery sector, and food processing industry have also played vital roles in job creation, economic growth, and global trade. The focus on exports and enhancement of domestic manufacturing capacities have positioned India as a key player in the global manufacturing landscape.
In conclusion, India’s manufacturing sector has demonstrated resilience, adaptability, and growth, fueled by technological advancements, proactive government policies, and initiatives aimed at enhancing competitiveness and expanding industrial capacities. The sector’s role in driving economic growth, employment generation, and structural transformation cannot be understated, showcasing India as a global manufacturing powerhouse on the trajectory of sustained growth and development.
