India’s Manufacturing GVA Hits 10% CAGR, Reforms Boost Growth

According to a statement from the Centre on Wednesday, manufacturing’s gross value added at constant prices expanded at a 10.88% compound annual growth rate between FY 2022‑23 and FY 2025‑26. Union Minister Rao Inderjit Singh informed the Lok Sabha that the new series does not indicate any drastic change in manufacturing’s share of total GVA. He pointed to several structural initiatives—Production‑Linked Incentives, the PM Gati‑Shakti National Master Plan, the National Logistics Policy, the Bharat Industrial Development Programme, semiconductor and electronics manufacturing drives, critical minerals promotion, MSME support, coal‑to‑gas projects, business‑friendly reforms, and the National Industrial Corridor Development Programme—as catalysts for a stronger domestic manufacturing base, diversified supply chains, reduced import reliance, higher energy security, and improved global competitiveness. The Ministry of Statistics and Programme Implementation moved the national accounts base year to 2022‑23, releasing the updated data series in February 2026. The Economic Survey 2025‑26 notes that medium and high‑technology industries now represent 46.3% of manufacturing GVA, signaling a shift to more advanced production structures. With these reforms and a robust supply chain, manufacturing remains a key driver toward India’s goal of a $35 trillion economy by 2047.