New Delhi, August 15: The Indian manufacturing sector has emerged as a cornerstone of economic growth, bolstered by the central government’s policies focused on production, self-reliance, and industrial development. An official fact sheet released by the government on Saturday highlights significant progress in the sector due to consistent increases in production, exports, and investments. Notable achievements have been made in strategic areas such as defense production, electronics manufacturing, and semiconductors.
According to the fact sheet, the manufacturing sector currently contributes approximately 16 to 17 percent to the country’s Gross Domestic Product (GDP) and provides employment to over 27 million people. The sector’s Gross Value Added (GVA) growth rate stands at a compound annual growth rate (CAGR) of 10.88 percent, reflecting its robust growth potential.
In July 2026, India’s merchandise exports surged to $44.24 billion, up from $36.98 billion during the same period last year. Additionally, manufacturing output recorded a 7.8 percent increase in June 2026, indicating ongoing improvements in industrial activities.
The defense sector has witnessed remarkable transformations over the past decade. With an emphasis on self-reliance, targeted investments, and policy reforms, indigenous defense production reached a record value of ₹1.78 lakh crore in the fiscal year 2025-26, marking a 15.6 percent increase from ₹1,54,071 crore in the previous fiscal year. In contrast, defense production was only ₹46,429 crore in 2014-15.
The electronics manufacturing sector has also expanded rapidly. In the fiscal year 2025-26, electronics production grew to ₹13.11 lakh crore, a 15.8 percent increase from ₹11.32 lakh crore in the previous fiscal year. There has been a significant rise in mobile phone manufacturing and exports, with mobile phone exports reaching ₹2.59 lakh crore, strengthening India’s position in the global electronics supply chain.
India is also making swift advancements in the semiconductor manufacturing sector. According to the government, under the Semiconductor India Program 1.0, 12 manufacturing units have been approved with investments exceeding ₹1.64 lakh crore as of July 2026. This includes a silicon fab, a silicon carbide fab, an integrated gallium nitride micro-LED display fab, and nine packaging units.
Moreover, the Production Linked Incentive (PLI) scheme for Large Scale Electronics Manufacturing (LSEM) has attracted approximately ₹96,000 crore in investments in the mobile manufacturing ecosystem. The government believes these initiatives will help position India as a global hub for semiconductors and electronics.
The fact sheet also notes that continuous growth in production, innovation, and exports in the pharmaceuticals sector has further solidified India’s reputation as a reliable global supplier of medicines. The Indian pharmaceutical industry plays a crucial role in the global health sector and is expected to expand further in the coming years.
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