India’s march toward a $35 trillion economy by 2047 will be powered by manufacturing, the government has said. Structural reforms, sector-specific incentives, and stronger supply chains are expected to drive growth.
The manufacturing sector has shown resilience despite global headwinds. Fitch Ratings, IMF, and S&P Global recently revised India’s growth outlook upward. Meanwhile, the S&P Global Manufacturing PMI reached a 16-month high.
According to an official statement, the Production Linked Incentive (PLI) scheme, National Manufacturing Mission, and skill development programs are providing a roadmap for industrial resurgence.The Index of Industrial Production grew 3.5 percent year-on-year in July, up from 1.5 percent in June. PMI improved from 58.4 in June to 59.3 in August, signalling the fastest improvement in operating conditions in 17 years.
Exports also underline manufacturing’s strength. Between April and August 2025, total exports rose 6.18 percent to $349.35 billion. Merchandise exports touched $184.13 billion, up 2.52 percent year-on-year.With this momentum, India’s manufacturing output could reach $1 trillion in FY26. By 2030, the sector may contribute $500 billion annually to the global economy, positioning India as both a global hub for production and innovation.
