New Delhi’s latest economic bulletin paints an optimistic picture for India’s factories and assembly lines. Manufacturing GVA expanded at 7.72% in Q1 FY26 before hitting 9.13% in Q2, fueled by a pivot to premium products, better infrastructure, and tech integration sweeping through plants nationwide.
Delving into the Economic Survey 2025-26, high-tech sectors dominate with 46.3% share in value added—a clear sign of upgrading from low-end assembly to sophisticated output. This evolution has lifted India’s rank in the global Competitive Industrial Performance index to 37th in 2023, up from 40th in 2022.
Looking ahead, manufacturing is central to Vision 2047’s $35 trillion goal, supported by regional initiatives and resilient supply chains. The recent budget amplifies this with focused pushes on R&D, capital spending, and ecosystem building.
Momentum built steadily: H1 FY26 industrial GVA rose 7% YoY, culminating in December’s 7.8% IIP surge—the best in 24 months after November’s revised 7.2%. Manufacturing led with 8.1% growth, driven by electronics (34.9%), autos (33.5%), and transport gear (25.1%).
As policymakers celebrate, experts note this isn’t fleeting—structural reforms are embedding competitiveness, positioning India as a manufacturing powerhouse amid global shifts.