India’s manufacturing sector is firing on all cylinders, showcasing remarkable resilience and growth in the latest quarter. Official data reveals that Gross Value Added (GVA) in manufacturing jumped by 7.72% in the first quarter of FY26, accelerating to a robust 9.13% in the second quarter. This surge underscores a strategic shift towards high-value production, bolstered by enhanced industrial infrastructure and rapid technology adoption.
The Economic Survey 2025-26 highlights a pivotal transformation: medium to high-tech industries now account for 46.3% of India’s manufacturing value added. This pivot signals a maturing production ecosystem poised for global competition.
India’s global standing has improved significantly, climbing to 37th in the Competitive Industrial Performance (CIP) index in 2023 from 40th the previous year. Government statements emphasize how these gains position manufacturing as the engine driving India’s ambitious $35 trillion economy by 2047.
The Union Budget 2026-27 has injected fresh momentum with targeted incentives for investment, innovation, and infrastructure. Real industrial GVA grew 7% year-on-year in the first half of FY26, with December 2025 marking a peak as industrial production soared 7.8%—the strongest expansion in two years.
The Index of Industrial Production (IIP) reflected this vigor, propelled by manufacturing’s 8.1% rise. Standouts included computers and electronics at 34.9%, motor vehicles at 33.5%, and other transport equipment at 25.1%. These figures paint a picture of a sector not just recovering, but redefining India’s economic trajectory with sustained reforms and supply chain resilience.