Manufacturing GVA grows 10.7% in FY26, govt cites reforms to strengthen sector
New Delhi, August 12
India's manufacturing Gross Value Added at constant prices grew 10.7 per cent in 2025-26, taking the compounded annual growth rate to 10.88 per cent during 2022-23 to 2025-26, the Lok Sabha was informed on Wednesday.
The available data does not indicate any significant change in the share of manufacturing in total GVA, which stood at 14.8 per cent in 2025-26, compared with 14.7 per cent in 2022-23.
The data is based on the revised National Accounts Statistics series, for which the base year was changed from 2011-12 to 2022-23. The revised series was released by the Ministry of Statistics and Programme Implementation in February 2026.
Manufacturing GVA at constant prices grew 12.7 per cent in 2023-24 and 9.3 per cent in 2024-25, before rising 10.7 per cent in 2025-26, according to the data.
The government said it has undertaken several structural reforms and initiatives to strengthen the resilience of the manufacturing sector and reduce its vulnerability to external shocks.
These include the Production Linked Incentive (PLI) schemes, PM GatiShakti National Master Plan, National Logistics Policy and Bharat Audyogik Vikas Yojana (BHAVYA), along with initiatives to promote semiconductor and electronics manufacturing, critical minerals and micro, small and medium enterprises (MSMEs).
The government has also cited the Scheme for Promotion of Surface Coal/Lignite Gasification Projects, improvement in ease of doing business and the National Industrial Corridor Development Programme among measures aimed at strengthening manufacturing.
According to a written reply in Lok Sabha, these initiatives seek to strengthen domestic manufacturing, diversify supply chains, reduce import dependence in strategic sectors, enhance energy security and improve the resilience and competitiveness of India's manufacturing ecosystem.
The government said the measures are intended to strengthen the sector's ability to withstand external shocks while supporting domestic production and supply-chain diversification.
— ANI
Reader Comments
The PLI schemes are finally showing results! Semiconductor and electronics manufacturing is picking up. As someone working in the electronics sector, I can see the difference. But we need to ensure MSMEs also benefit, not just the big players. 🙏
Bhai, these numbers look good on paper, but on the ground, small manufacturers are still struggling with high power costs and complicated compliance. The ease of doing business needs to reach the grassroots, not just the big industrial corridors. Just saying. 🤔
Interesting to see the revised base year making a difference. From an outsider's perspective (I'm from the US), India's manufacturing push is being watched closely globally. The supply chain diversification away from China is real, and India is a key beneficiary. Hope the momentum continues! 🌏
Finally, some good economic news! The logistics policy and GatiShakti are game-changers. My family runs a small auto parts unit in Pune, and we've seen freight costs come down. But we need more skilled workers - the government should focus on vocational training alongside these reforms. 💪
Respectfully, I have to point out that the 10.7% growth is at constant prices, but the manufacturing share hasn't moved much. Are we really becoming a manufacturing hub, or is this just a cyclical recovery? The government should release more granular data on employment in the sector. 📈
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