Merchandise exports grew 2.52% to US$184.13 billion in April–August 2025 from US$179.60 billion a year earlier.
Manufacturing Performance
- Strong Growth Momentum: The Index of Industrial Production (IIP) surged to 3.5% Year-on-Year (YoY) in July 2025, primarily led by 5.4% YoY manufacturing growth.
- Operating Conditions Improve: The HSBC India Manufacturing Purchasing Managers’ Index (PMI) reached 59.3 in August 2025, the fastest growth in over 17 years.
- Investment Confidence: Manufacturing Foreign Direct Investment (FDI) accelerated 18% in FY 2024-25.
Engines of Growth for Manufacturing
- Electronics Dominance: India is the world’s second-largest mobile manufacturer. Production has seen a sixfold rise and exports an eightfold surge over the past 11 years.
- Dependence on imported mobile phones has dropped from 75% in 2014-15 to 0.02% in 2024-25.
- Pharmaceuticals ("Pharmacy of the World"): The industry ranks 3rd globally by volume and supplies over 50% of global vaccine demand.
- Automotive Sector: Contributes 7.1% to India’s GDP and is the fourth-largest automobile producer globally.
- Textiles: It is the second-largest employer after agriculture, contributing around 2.3% to GDP. Nearly 80% of its capacity lies in MSME clusters, ensuring inclusive growth.
Government Initiatives and Policy to boost Manufacturing
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