India marks 80 years since independence with a booming manufacturing sector, driven by strategic investments in defence, maritime, electronics and pharmaceuticals, aiming to make up 25% of GDP by 2035.
India’s manufacturing story has become one of the clearest markers of its economic rise, with officials pointing to gains across defence, shipbuilding, electronics and pharmaceuticals as the country marks 80 years since independence. The government says the sector now accounts for roughly 16% to 17% of gross domestic product and supports more than 27 million jobs, helped by policies such as Make in India, the Production-Linked Incentive programme, PM GatiShakti and the National Logistics Policy.
The latest official figures suggest that momentum is still building. The Press Information Bureau said manufacturing gross value added expanded at a compounded annual rate of 10.88% between 2022-23 and 2025-26, while output rose 7.8% in June 2026. Merchandise exports also increased to $44.24 billion in July 2026 from $36.98 billion a year earlier, underscoring the sector’s growing role in India’s external trade.
Much of the government’s recent focus has been on industries seen as strategically important. In September 2025, the Union Cabinet approved a Rs69,725 crore package to strengthen shipbuilding and maritime capacity, including funds for development, financing and shipyard support. The package was framed as a four-pillar effort to widen domestic capability, improve long-term funding and push technical skills. The maritime push was followed by a new Container Manufacturing Assistance Scheme in the 2026-27 Union Budget, with Rs10,000 crore set aside over five years to build annual capacity of up to 7.5 lakh TEUs.
Defence and electronics have also emerged as standout performers. India’s indigenous defence production reached a record Rs1.78 lakh crore in FY2025-26, while defence exports climbed from Rs686 crore in 2013-14 to Rs38,424 crore in 2025-26, reaching more than 80 countries, according to official data. Electronics production rose 15.8% year on year to Rs13.11 lakh crore in FY2025-26, and smartphones became India’s top individual export item, overtaking petroleum, gems and jewellery. In pharmaceuticals, annual turnover reached Rs4.72 lakh crore in 2024-25, with India supplying about 20% of the world’s generic medicines. Industry group India Brand Equity Foundation says the manufacturing sector is now being positioned for a larger role still, with a goal of lifting its share of GDP to 25% by 2035 and creating far more jobs through deeper integration into global supply chains.
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