Economy GS 3 In the news 5 times

India's Manufacturing Sector

Structure and Policy Context

India's manufacturing sector contributes approximately 16–17% of GDP, well below the government's target of 25% under the Make in India initiative (launched 2014). The sector spans traditional industries (textiles, food processing) and high-growth segments (electronics, pharmaceuticals, defence). The Production-Linked Incentive (PLI) scheme — covering 14 sectors with total outlay of Rs 1.97 lakh crore — is the flagship policy aimed at boosting manufacturing output and exports.

Key details

Manufacturing's share of GDP (FY2024-25): ~16–17% (target: 25% under Make in India)
PLI scheme: 14 sectors, total outlay ~Rs 1.97 lakh crore; launched 2020-21
Index of Industrial Production (IIP): official monthly measure of manufacturing output; base year 2011-12
IIP covers: manufacturing (77.6%), mining (14.4%), electricity (8%) by weight
Strong PMI (56.9 in Feb 2026) supports the RBI's assessment of continued economic momentum

In the news

● Tracked since February 20, 2026 · last seen April 02, 2026 · updates as the daily brief publishes

02 Apr '26

India’s manufacturing registers weakest growth in nearly four years: PMI survey shows

Economics

02 Mar '26

PMI Manufacturing rose to 4-month high of 56.9 in February

Economics

02 Mar '26

Manufacturing activity surges at fastest pace in four months in February: PMI survey shows

Economics

02 Mar '26