India’s manufacturing sector saw a compounded annual growth rate of 10.88% between 2022-23 and 2025-26, driven by government reforms, incentives, and rising demand, with medium- and high-technology activities now forming nearly half of manufacturing value added.
India’s manufacturing sector posted a compounded annual growth rate of 10.88 per cent in constant prices between 2022-23 and 2025-26 under the revised national accounts series, the government told Parliament on Wednesday, saying the broader data do not show a marked shift in manufacturing’s share of total gross value added.
Rao Inderjit Singh, minister of state with independent charge, said the government has backed the sector with a wide set of reforms and incentives aimed at making production more resilient and less exposed to external shocks. Those measures include production-linked incentives, PM GatiShakti, the National Logistics Policy, support for semiconductors and electronics, programmes for critical minerals and small businesses, and steps to improve the ease of doing business.
The latest figures come after the Ministry of Statistics and Programme Implementation revised the base year for national accounts statistics from 2011-12 to 2022-23, with the new series released in February 2026. In its Economic Survey 2025-26, the government said industry GVA rose 7.0 per cent in real terms in the first half of FY2025-26, while manufacturing GVA advanced 7.72 per cent in the first quarter and 9.13 per cent in the second. The survey also said medium- and high-technology activities now account for 46.3 per cent of manufacturing value added.
The government has been seeking to position manufacturing as a central pillar of its long-term growth strategy, including its ambition of a $35 trillion economy by 2047. The survey pointed to progress in several industrial segments, including record coal output in FY2025 and the pharmaceutical sector’s continued place among the world’s largest by volume.
Business surveys suggest the momentum has carried into the current financial year. HSBC’s India manufacturing PMI stood at 53.5 in July, indicating expansion for the month even as the pace eased from June’s 54.2. The survey cited firm demand, stronger export orders and continued gains in new business and output, with manufacturers also pointing to advertising efforts and resilient sales conditions.
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