Last Updated on September 20, 2025 12:53 am by BIZNAMA NEWS
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. PIB
