2 weeks ago
India's manufacturing sector rises to 16-17% of GDP
India makes a lot of things in factories, like phones, medicines, and defence equipment.
This manufacturing work now makes up about 16 to 17 out of every 100 rupees of the country's entire economy.
It gives jobs to more than 27 million people.
The government shared these facts in a new report.
Indian factories are growing fast and selling more goods to other countries.
In July 2026, India sold goods worth about 44 billion dollars to other countries.
The country is now making more electronics and mobile phones at home.
India's defence industry has also grown a lot in the last ten years because the government supports it.
Special programs, like the Semicon India Programme, are helping build new factories that make computer chips.
The manufacturing sector now contributes about 16-17 per cent of GDP and employs over 27 million workers.
Merchandise exports in July 2026 reached $44.24 billion, up from $36.98 billion a year earlier.
Indigenous defence production hit a record Rs 1.78 lakh crore in FY26, up 15.6 per cent year on year.
Electronics production grew 15.8 per cent year on year to Rs 13.11 lakh crore in FY26.
Twelve manufacturing units with investments exceeding Rs 1.64 lakh crore have been approved under the Semicon India Programme.
- Who
- The Government of India released an official factsheet on the manufacturing sector.
- What
- India's manufacturing sector has become a central driver of economic growth, with rising output, exports, and investment, including gains in defence production and electronics manufacturing.
- Where
- India, with the statement released in New Delhi.
- When
- Data covers July 2026, June 2026, and fiscal year FY26.
- Why
- Focused policies, targeted investments, and a strong push for self-reliance have driven growth in the sector.
Key facts
- Manufacturing share of GDP
- 16-17 per cent
- Manufacturing employment
- Over 27 million workers
- GVA CAGR (constant prices)
- 10.88 per cent
- Merchandise exports (July 2026)
- $44.24 billion
- Manufacturing output growth (June 2026)
- 7.8 per cent
- Defence production (FY26)
- Rs 1.78 lakh crore
- Electronics production (FY26)
- Rs 13.11 lakh crore
- Semicon India Programme investments
- Over Rs 1.64 lakh crore across 12 approved units
Quotes
Government statement
Official government release
“Electronics production rose from Rs 11.32 lakh crore in FY25 to Rs 13.11 lakh crore in FY26, a 15.8 per cent year on year increase.”
thehansindia.com










