Advantage India
Robust
Demand
*India’s total exports reached a record Rs. 69.76 lakh crore (US$ 825.30 billion) in FY25, registering a 6.1% year-on-year growth, driven primarily by robust growth in services exports which experienced a 13.6% (YoY) increase.
*In FY25, India’s merchandise exports totalled Rs. 37.01 lakh crore (US$ 437.70 billion) in which Non-petroleum exports reached a historic high of Rs. 31.65 lakh crore (US$ 374.30 billion).
*By 2030, the Indian middle class is expected to have the second-largest share in global consumption at 17%.
Increasing
Investment
*The key initiatives include the Production Linked Incentive (PLI) Scheme for Large Scale Electronics Manufacturing, PLI Scheme 2.0 for IT Hardware, Electronics Manufacturing Clusters (EMC and EMC 2.0) Scheme, Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), and the Modified Programme for Development of Semiconductors and Display Manufacturing Ecosystem.
*India has attracted over Rs. 33,824.18 crore (US$ 4 billion) by FY26 in FDI in electronics manufacturing since 2020-21, reflecting rising global investor confidence.
Policy
Support
*The Government of India continues to strengthen manufacturing through the Production Linked Incentive (PLI) Scheme, with an outlay of Rs. 1.91 lakh crore (US$ 21.61 billion), covering 14 strategic sectors and attracting strong industry participation.
*As of December 2025, PLI schemes have generated investments exceeding Rs. 2.16 lakh crore (US$ 24.44 billion), driving incremental production of over Rs. 20.41 lakh crore (US$ 230.95 billion) and creating over 14.39 lakh jobs, reinforcing India’s manufacturing ecosystem.
*The government has increased the outlay for the Electronics Components Manufacturing Scheme (ECMS) to Rs. 40,000 crore (US$ 4.53 billion), aiming to deepen domestic value addition and position India as a global electronics manufacturing hub.
Competitive
Advantage
*Manufacturing continues to expand across sectors, with 8.00% growth recorded in November 2025, led by automobiles, pharmaceuticals and metals. Industrial activity remains robust, with IIP growth reaching 7.80% in December 2025, the highest in over two years, followed by 4.80% growth in January 2026, driven by manufacturing expansion.
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MOREManufacturing Clusters
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- Gujarat
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