India's Manufacturing Sector Grows 10.7%, Aided by Key Government Initiatives

India's manufacturing GVA grew 10.7% in 2025-26, maintaining a CAGR of 10.88% from 2022-23 to 2025-26. Despite this growth, manufacturing's GVA share remained stable. The government implemented reforms like PLI schemes and National Logistics Policy to enhance resilience, reduce external vulnerabilities, and support strategic sector independence.

The Lok Sabha was informed on Wednesday that India's manufacturing sector has witnessed a significant boost, with the Gross Value Added (GVA) at constant prices increasing by 10.7% in the fiscal year 2025-26. This surge brings the compounded annual growth rate (CAGR) to 10.88% from 2022-23 to 2025-26.

Despite the robust growth, the share of manufacturing in total GVA remained largely unchanged, sitting at 14.8% in 2025-26, marginally up from 14.7% in 2022-23. This data reflects updates from the revised National Accounts Statistics series, which adjusted the base year to 2022-23 and was released by the Ministry of Statistics and Programme Implementation in February 2026.

To bolster the manufacturing sector's resilience against external shocks, the government has rolled out several measures, including Production Linked Incentive schemes, the PM GatiShakti National Master Plan, and the National Logistics Policy. Additionally, initiatives like BHAVYA, surface coal/lignite gasification projects, and improvements in the ease of doing business are pivotal in supporting domestic production and enhancing energy security.