Business · Economy · 1 hr ago
India seeks to expand manufacturing beyond its software strength
India wants to build a larger manufacturing sector after becoming known worldwide for software and business services.
In 2025, agriculture employed 43% of workers, while manufacturing employed 12%.
Manufacturing grew 10.7% last year, faster than the economy overall, but made up only 15% of economic activity.
The government aims to use India's technology skills to make more physical goods, including electronic components and chips.
A new $4 billion programme is intended to create 100 industrial parks, with ready buildings, utilities and faster permits to help companies start production sooner.
The government also offers incentives tied to increased production and sales in 14 sectors, including electronics, cars and medicines.
India is trying to add factories without giving up its strength in technology, but the sources do not say how quickly the plans will deliver results.
India is seeking to expand manufacturing, building on its strength in software and technology services.
In 2025, manufacturing employed 12% of the population, while 43% worked in agriculture.
Manufacturing grew 10.7% in 2025 but accounted for only 15% of economic activity.
The government has introduced incentives for production in 14 strategic sectors, including electronics, cars and medicines.
In March 2026, it created a roughly $4 billion program for 100 industrial parks.
- Who
- The Indian government, led by Prime Minister Narendra Modi, is seeking to expand manufacturing.
- What
- India is using incentives and industrial parks to increase manufacturing and attract production.
- When
- The article was published on October 17, 2026. It says a new industrial-park program was created in March 2026.
- Where
- India.
- Why
- Manufacturing employs a relatively small share of the population and accounts for 15% of economic activity. The government says more manufacturing capacity is needed to meet its economic goals.
This story does not have two clearly opposing sides.
India became a global power in technology services and software.
Agriculture employed 43% of India’s workers, while manufacturing employed 12%.
Manufacturing grew 10.7% and accounted for 15% of economic activity.
India created a program setting aside about $4 billion to build 100 industrial parks.
- Manufacturing share of workers in 2025
- 12%
- Agriculture share of workers in 2025
- 43%
- Manufacturing growth in 2025
- 10.7%
- Manufacturing share of economic activity
- 15%
- Industrial-park program
- About $4 billion for 100 parks
- Strategic sectors receiving production incentives
- 14
What people are saying
To move from a US$5 trillion economy in the coming years to US$30 trillion by 2047, we are aware that we will need more manufacturing capacity, an injection of technology into our economy and skills training for our population.
The central focus today is the direct transition to manufacturing electronic components and chips.