Archive · 24 Aug 2026
Government Schemes Propel India’s Manufacturing Growth and Supply-Chain Rise
A new report says India’s factories are growing quickly.
Government programmes are helping companies build factories and move goods more easily.
These programmes include Make in India and the Production Linked Incentive scheme.
New roads, ports, freight corridors and logistics parks are also being developed.
Many global companies want to reduce their dependence on production in one country.
Because of this, some companies are looking at India for manufacturing and sourcing.
India also has many customers inside the country and a large workforce.
The report says trade agreements could help Indian manufacturers sell more goods abroad.
A report says India’s manufacturing sector recorded double-digit growth in 2025–26, supported by government schemes and private investment.
Make in India, the Production Linked Incentive scheme, PM Gati Shakti and logistics reforms have increased industrial output, investment and exports.
Companies are increasingly considering India for production and sourcing because of its domestic market, workforce, policy stability and improving logistics.
India’s manufacturing growth averaged 4.15% between 2022 and 2025, compared with a 2.19% global average, according to the report.
Supply-chain diversification strategies such as China+1, friendshoring and nearshoring could help India capture more global production and investment.
- Who
- India’s manufacturing sector, the Indian government and global companies are central to the report.
- What
- A report says government schemes and private investment are accelerating India’s manufacturing growth and attracting global supply-chain shifts.
- When
- The report discusses growth in 2025–26 and compares manufacturing performance during 2016–19 and 2022–25.
- Where
- India, in the context of global manufacturing and supply chains.
- Why
- Government incentives, infrastructure and regulatory reforms, rising domestic demand, and supply-chain diversification are making India more attractive to manufacturers.
- Reported 2025–26 performance
- India’s manufacturing sector recorded double-digit growth, according to the report.
- India’s 2022–25 growth
- Average manufacturing growth was 4.15%, compared with a 2.19% global average.
- Pre-pandemic comparison
- India’s average manufacturing growth was 3.44% during 2016–19, below the global average of 4.39%.
- China comparison
- China’s average manufacturing growth fell from 6.79% before the pandemic to -0.07% during 2022–25.
- Government initiatives
- The report highlights Make in India, the Production Linked Incentive scheme, PM Gati Shakti and the National Logistics Policy.
- Infrastructure measures
- Industrial corridors, multimodal logistics parks, dedicated freight corridors, port modernisation and expanded highways are intended to improve supply-chain efficiency.
- Trade negotiations
- The report says negotiations with the European Union and the United Kingdom could improve market access for Indian manufacturers.