{"id":54702,"date":"2025-09-20T19:55:36","date_gmt":"2025-09-20T14:25:36","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=54702"},"modified":"2025-09-23T15:13:27","modified_gmt":"2025-09-23T09:43:27","slug":"india-manufacturing-momentum","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/20-09-2025\/india-manufacturing-momentum","title":{"rendered":"India\u2019s Manufacturing Momentum: Performance and Policy"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>In Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The <strong>Index of Industrial Production (IIP)<\/strong> showed a significant rise in July 2025, with overall growth at 3.5% and manufacturing growth at 5.4% year-on-year, mainly <strong>driven by manufacturing<\/strong>, reflecting rising demand and better capacity use.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Present Status of India\u2019s Manufacturing sector<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India\u2019s manufacturing exports are growing steadily, with total exports rising 6.18% YoY to US$ 349.35 billion in April-August 2025.<\/li>\n\n\n\n<li>Merchandise exports grew 2.52% to US$ 184.13 billion.&nbsp;<\/li>\n\n\n\n<li>The sector is on track to reach US$ 1 trillion by FY26 and could add US$ 500 billion annually to the global economy by 2030.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"dee5ea\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"337\" height=\"263\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/09\/Present-Status-of-Indias-Manufacturing-sector.webp\" alt=\"present status of India\u2019s manufacturing sector\" class=\"not-transparent wp-image-54704\" style=\"--dominant-color: #dee5ea; width:417px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/09\/Present-Status-of-Indias-Manufacturing-sector.webp 337w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/09\/Present-Status-of-Indias-Manufacturing-sector-300x234.webp 300w\" sizes=\"auto, (max-width: 337px) 100vw, 337px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>Engines of Growth: Sectors on the Move<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Electronics: <\/strong>India\u2019s electronics manufacturing sector has seen a sixfold rise in production and an eightfold surge in exports over the past 11 years. Electronics value addition has jumped from 30% to 70%, with targets to reach 90% by FY27.\n<ul class=\"wp-block-list\">\n<li>Mobile manufacturing expanded from 2 to 300 units, and exports surged 127 times. Import dependence dropped from 75% to 0.02%, making India the world\u2019s second-largest mobile manufacturer.&nbsp;<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Pharma: <\/strong>India\u2019s pharmaceutical industry is a global powerhouse <strong>ranking 3rd in the world by volume <\/strong>and 14th in terms of value of production supplying over 50% of global vaccine demand and nearly 40% of generics to the US.\n<ul class=\"wp-block-list\">\n<li>The industry is projected to grow to USD 130 billion by 2030 and the US$ 450 billion market by 2047.<\/li>\n\n\n\n<li>It is backed by policy support for Pharmaceuticals like the PLI scheme (\u20b915,000 crore) and Strengthening of Pharmaceuticals Industry (SPI) scheme (\u20b9500 crore).<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Automobiles: <\/strong>India\u2019s automotive industry is a key driver of the economy, contributing 7.1% to GDP and 49% to manufacturing GDP. In FY25, over 3.10 crore vehicles were produced, making India the world\u2019s fourth-largest automobile producer with strong potential to lead the global automotive value chain.<\/li>\n\n\n\n<li><strong>Textiles: <\/strong>India\u2019s textile and apparel industry, one of the largest globally, contributes <strong>2.3% to GDP<\/strong>, <strong>13% to industrial production, and 12% to exports<\/strong>.\n<ul class=\"wp-block-list\">\n<li>It is projected to grow to US$ 350 billion by 2030, creating 3.5 crore jobs.<\/li>\n\n\n\n<li>The sector employs over 45 million people, mainly in MSME clusters.&nbsp;<\/li>\n\n\n\n<li>The government has approved seven<strong> <\/strong><a href=\"https:\/\/www.nextias.com\/blog\/pm-mitra-parks\/\"><strong>PM MITRA Parks<\/strong> <\/a>with \u20b94,445 crore funding to attract \u20b970,000 crore investment and generate 20 lakh jobs.\u00a0<\/li>\n\n\n\n<li>The first park in Dhar, Madhya Pradesh, opened recently.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Importance\u00a0of India\u2019s manufacturing sector<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India has become a top destination for global investors due to consistent reforms, simpler regulations, and a stable policy environment.\n<ul class=\"wp-block-list\">\n<li>Maharashtra led with 39% of inflows, followed by Karnataka and Delhi.\n<ul class=\"wp-block-list\">\n<li>Singapore, Mauritius, and the US were the top FDI sources.&nbsp;<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>The manufacturing sector is becoming a <strong>key driver of economic growth<\/strong>, boosting both domestic demand and its role in global supply chains.&nbsp;<\/li>\n\n\n\n<li>Manufacturing in India is a <strong>major job creator, especially for semi-skilled<\/strong> and <strong>skilled workers<\/strong>.&nbsp;<\/li>\n\n\n\n<li>Recent data shows rising workforce participation, particularly among women, with the Worker Population Ratio at 52.2% and female participation improving steadily.&nbsp;<\/li>\n\n\n\n<li><strong>Unemployment rates have eased, <\/strong>reflecting broad-based and inclusive employment growth.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Steps and Policies&nbsp;<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India is driving its next manufacturing surge through complementary policies across manufacturing, logistics, urban development, and entrepreneurship, supported by flagship initiatives that boost investment, innovation, and job creation.<\/li>\n\n\n\n<li><strong>GST 2.0 reforms<\/strong> have simplified tax slabs and reduced rates on key goods, lowering costs for manufacturers and consumers, supporting MSMEs, enhancing supply chain efficiency, and boosting sectors like auto and textiles.<\/li>\n\n\n\n<li><strong>The National Manufacturing Mission (NMM), <\/strong>launched in Budget 2025-26, offers a unified, cross-ministerial strategy focused on sustainable, clean-tech industrial growth aligned with India\u2019s net-zero goals, aiming to elevate India\u2019s global manufacturing leadership.<\/li>\n\n\n\n<li><strong>The Production Linked Incentive (PLI) Scheme<\/strong>, with \u20b91.97 lakh crore outlay, incentivizes 14 key sectors like electronics, pharma, and solar, driving export surpluses, record-breaking smartphone exports, strong investments, and job creation.<\/li>\n\n\n\n<li><strong>The National Logistics Policy (NLP)<\/strong> seeks to reduce logistics costs and improve efficiency by 2030, integrating digital systems, multi-modal connectivity, and infrastructure like logistics parks, aligned with the PM GatiShakti master plan.<\/li>\n\n\n\n<li><strong>Startup India<\/strong> has fostered India\u2019s third-largest startup ecosystem with 1.91 lakh recognized startups creating over 17.69 lakh jobs, fueling innovation and economic growth.<\/li>\n\n\n\n<li><strong>The National Industrial Corridor Development Programme<\/strong> is building smart industrial cities with multi-modal connectivity, promoting manufacturing and urbanization, backed by \u20b928,602 crore investment in new projects, enhancing India\u2019s global manufacturing appeal.<\/li>\n\n\n\n<li><strong>The Union Budget 2025\u201326<\/strong> boosts India\u2019s manufacturing with an \u20b98,800 crore (US$ 1.1 billion) extension of the restructured<strong> Skill India Programme <\/strong>until 2026.\n<ul class=\"wp-block-list\">\n<li>&nbsp;It integrates key schemes into a unified, industry-aligned framework to develop a demand-driven, tech-enabled workforce that meets modern industry needs.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Future Outlook&nbsp;<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India aims to become a $35 trillion economy by 2047, with manufacturing as its key growth driver. Supported by reforms, incentives, and strong supply chains, the sector shows robust momentum and resilience.&nbsp;<\/li>\n\n\n\n<li>Government initiatives like the PLI scheme, National Manufacturing Mission, and skill development offer a clear path for industrial growth.&nbsp;<\/li>\n\n\n\n<li>As global supply chains realign, India has a unique opportunity to evolve from the \u201cfactory of the world\u201d to a global hub of innovation and leadership.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source :<\/strong><a href=\"https:\/\/www.pib.gov.in\/PressNoteDetails.aspx?NoteId=155242&amp;ModuleId=3\" rel=\"nofollow noopener\" target=\"_blank\"><strong>PIB<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<h3><strong>In Context<\/strong><\/h3>\n<li class=\"ms-5\">The Index of Industrial Production (IIP) showed a significant rise in July 2025, with overall growth at 3.5% and manufacturing growth at 5.4% year-on-year, mainly driven by manufacturing, reflecting rising demand and better capacity use.<\/li>\n<p><\/p>\n<h3><strong>Present Status of India\u2019s Manufacturing sector<\/strong><\/h3>\n<li class=\"ms-5\">India\u2019s manufacturing exports are growing steadily, with total exports rising 6.18% YoY to US$ 349.35 billion in April-August 2025.<\/li>\n<li class=\"ms-5\">Merchandise exports grew 2.52% to US$ 184.13 billion.\u00a0<\/li>\n<li class=\"ms-5\">The sector is on track to reach US$ 1 trillion by FY26 and could add US$ 500 billion annually to the global economy by 2030.<\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/20-09-2025\/india-manufacturing-momentum\" class=\"btn btn-primary btn-sm float-end\">Read\u00a0More<\/a><\/p>\n","protected":false},"author":15,"featured_media":54696,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-54702","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/09\/india-manufacturing-momentum.png","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/54702","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=54702"}],"version-history":[{"count":3,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/54702\/revisions"}],"predecessor-version":[{"id":54851,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/54702\/revisions\/54851"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media\/54696"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=54702"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=54702"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=54702"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}