India’s manufacturing export engine is firing on multiple cylinders as broader merchandise trade stabilizes. The contribution of manufacturing sector in the economy is evident with the rise in exports. In April-August 2025, total exports rose 6.18% YoY to US$ 349.35 billion. The cumulative value of merchandise exports during April-August 2025 was US$ 184.13 billion, as compared to US$ 179.60 billion during April-August 2024, registering a positive growth of 2.52%.
With the visible development in manufacturing sector, it shows that the sector has potential to reach Rs. 87,57,000 crore (US$ 1 trillion) in FY26 and potentially add more than Rs. 43,43,500 crore (US$ 500 billion) annually to the global economy by 2030, which indicates that India is steadily cementing its position as a global manufacturing hub.
While July’s IIP surge was powered primarily by basic metals, electrical equipment, and non-metallic minerals, the broader story of India’s manufacturing ascent goes beyond these categories. Alongside these high-performing industries, a set of strategic sectors—electronics, pharmaceuticals, automobiles and textiles—are driving long-term structural growth and shaping India’s global competitiveness.
India’s 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. From just two mobile manufacturing units a decade ago, India now houses around 300 units, reflecting a 150-fold expansion in production capacity. Exports of mobile phones expanded from ₹1,500 crore to nearly ₹2 lakh crore, while dependence on imports dropped from 75% in 2014–15 to 0.02% in 2024–25.
India’s pharmaceutical industry is a global powerhouse ranking 3rd in the world by volume and 14th in terms of value of production, supplying over 50% of global vaccine demand and nearly 40% of generics to the US. It is projected to grow to USD 130 billion by 2030 and USD 450 billion by 2047.
The automotive industry contributes 7.1% to India’s GDP and 49% to manufacturing GDP, producing over 3.10 crore vehicles in FY25, making India the fourth-largest automobile producer globally.
The textile and apparel industry contributes 2.3% to GDP, 13% to industrial production, and 12% to total exports. It is set to grow to US\$ 350 billion by 2030 and create 3.5 crore jobs. Seven PM MITRA parks, backed by ₹4,445 crore, aim to attract ₹70,000 crore in investment and generate nearly 20 lakh jobs.
Together, these sectors not only anchor India’s export momentum but also reinforce its ambition to become a US$ 1 trillion manufacturing economy by FY26. These trends highlight how India is steadily emerging as a global manufacturing hub.
Source: PIB