New Delhi, February 12 (IANS). India’s manufacturing sector has strengthened rapidly in recent quarters and the GVA (Gross Value Added) growth rate stood at 7.72 percent in Q1FY26 and 9.13 percent in Q2FY26. The reason for its strength is the increasing trend towards high-value production, improvement in industrial infrastructure and rapid adoption of technology. This information was given in an official statement released on Thursday.
The Economic Survey 2025-26 reported that medium to high technology industries accounted for 46.3 per cent of India’s manufacturing value added, reflecting a shift towards a higher quality production structure.
“India’s global industrial competitiveness has significantly improved due to the boom in the manufacturing sector and the country’s ranking in Competitive Industrial Performance (CIP) has increased to 37th in 2023 from 40th in 2022,” the statement said.
The statement further said that manufacturing today serves as the engine of growth for India’s ambition to become a $35 trillion economy by 2047 with reforms, regional initiatives and strong supply chains.
The statement further said that the Union Budget 2026-27 has strengthened support for manufacturing through targeted measures focusing on investment promotion, innovation, infrastructure development and strengthening the industrial ecosystem.
Furthermore, industrial activity continues to strengthen, with real industrial GVA growing at 7 per cent year-on-year in H1FY25-26.
This momentum extended further in the year as industrial production expanded 7.8 per cent in December 2025, the strongest expansion in two years after registering a higher growth of 7.2 per cent (revised estimate) in November 2025.
“This expansion is also reflected in the Index of Industrial Production (IIP), which is mainly driven by the manufacturing sector registering a growth of 8.1 per cent in December 2025. Within this, strong growth was recorded in computer and electronic products (34.9 per cent), motor vehicles and trailers (33.5 per cent), and other transport equipment (25.1 per cent),” the government said.
–IANS
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