Manufacturing Sector in India: Key Players, Growth & Opportunities

India is the third most sought-after manufacturing destination in the world and has the potential to export goods worth US$ 1 trillion by 2030.

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%.

Robust economic growth icon

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.

Attractive investment icon India

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.

India policy support icon

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.

Competitive advantage icon India
Last updated: Aug, 2026

IBEF Campaigns

MORE
Discover India

Discover India

A campaign designed to showcase the country’s rich heritage, vibrant ...

Aatmanirbhar Bharat Utsav 2024

Aatmanirbhar Bharat Utsav 2024

Union Minister of External Affairs, Dr. S. Jaishankar and Union Commerce an...

Case Studies

MORE

The Rise of Contract Manufacturing in India's Electronics Sector

The Rise of Contract Manufacturing in India's Electronics Sector

India's rise to become a large center for electronics manufacturing services is one of the most significant manufacturing changes in India's r...

Emergence of Battery Swapping Stations and Battery Swapping Electric Vehicles in India

Emergence of Battery Swapping Stations and Battery Swapping Electric Vehicles in India

Battery swapping has emerged as a notable addition to conventional electric vehicle (EV) charging for electric two and three-wheelers that require hig...

Smart Metering Deployment in India Policy Framework, Institutional Structure and National Implementation Status

Smart Metering Deployment in India Policy Framework, Institutional Structure and National Implementation Status

smart metering deployment in India, smart meter policy India, smart metering implementation India, smart meter rollout, institutional framework for sm...

IBEF BLOG

MORE
India's Push for Self-Reliance in Advanced Technology Sectors
14 Aug 2026

India's Push for Self-Reliance in Advanced Technology Sectors

Strategic priority on technological self-reliance in high-tech sectors is a...

How AI and Smart Classrooms are Changing the Education System in India
13 Aug 2026

How AI and Smart Classrooms are Changing the Education System in India

Education serves as an important pillar in the socio-economic development o...

Industrial Development in Meghalaya: Trends and Opportunities
31 Jul 2026

Industrial Development in Meghalaya: Trends and Opportunities

Meghalaya is emerging as an important economic and industrial hub in North-...

Partners
Loading...