New Delhi, August 15 (IANS). Due to the policies of the Central Government related to production, self-reliance and industrial development, India's manufacturing sector has emerged as the main basis of the country's economic growth. According to an official factsheet released by the government on Saturday, the manufacturing sector has registered remarkable progress in recent years due to steady growth in production, exports and investment. India has also made significant achievements in strategic sectors like defense production, electronics manufacturing and semiconductors.
According to the factsheet, India's manufacturing sector currently contributes about 16 to 17 percent of the country's gross domestic product (GDP) and employs more than 2.7 crore people. The sector's gross value added (GVA) growth rate at constant prices has been 10.88 percent, indicating its strong growth potential.
The government said that India's merchandise export increased to $ 44.24 billion in July 2026, whereas it was $ 36.98 billion in the same period last year. At the same time, a growth of 7.8 percent was recorded in manufacturing production in June 2026, which is a sign of continuous improvement in industrial activities.
India has witnessed remarkable changes in the defense sector in the last decade. Emphasis on self-reliance, targeted investment and policy reforms resulted in the value of indigenous defense production reaching a record Rs 1.78 lakh crore in FY 2025-26. This is 15.6 percent more than Rs 1,54,071 crore of the last financial year. In comparison, the country's defense production in the year 2014-15 was only Rs 46,429 crore.
The electronics manufacturing sector has also expanded at a rapid pace. Electronics production increased to Rs 13.11 lakh crore in FY 2025-26, which is 15.8 percent more than Rs 11.32 lakh crore in FY 2024-25. Large growth has also been recorded in mobile phone manufacturing and exports. Mobile phone exports have increased to Rs 2.59 lakh crore, thereby strengthening India's position in the global electronics supply chain.
India is now progressing rapidly in the semiconductor manufacturing sector as well. According to the government, 12 manufacturing units with an investment of more than Rs 1.64 lakh crore by July 2026 have been approved under Semicon India Program 1.0. These include one silicon fab, one silicon carbide fab, one integrated gallium nitride micro-LED display fab and nine packaging units.
Additionally, the Production Linked Incentive (PLI) scheme implemented for Large Scale Electronics Manufacturing (LSEM) has attracted investments of around Rs 96,000 crore in the mobile manufacturing ecosystem. The government believes that these initiatives will help in making India a global semiconductor and electronics hub.
The fact sheet also said that the steady growth in production, innovation and exports in the pharmaceutical sector has further strengthened India's identity as a reliable global pharmaceutical supplier. The Indian pharmaceutical industry is playing an important role in the global health sector and is expected to expand further in the coming years.
–IANS
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