Manufacturing a key growth engine as India aims for $35 trillion economy by 2047

New Delhi, Sep 20 (IANS) As India advances toward its $35 trillion economy vision by 2047, manufacturing will be the engine of growth -- supported by reforms, sectoral incentives and resilient supply chains, according to the government.

The sector has gained strong momentum, reflected in GDP growth projections revised upward in Fitch ratings, IMF and S&P Global Outlook and the manufacturing PMI (S&P Global) hitting a 16-month high.

“The sector has demonstrated resilience even amid global uncertainties. The government’s vision of raising manufacturing’s share in GDP, backed by transformative policies like the PLI scheme, the National Manufacturing Mission, and skill development initiatives, provides a clear roadmap for industrial resurgence,” according to an official statement.

The Index of Industrial Production (IIP), which tracks the volume of output across manufacturing, mining, and electricity, recorded a growth of 3.5 per cent year-on-year in July, rising significantly from 1.5 per cent in June.

The momentum was also mirrored in the HSBC India Manufacturing Purchasing Managers’ Index (PMI) for manufacturing. In June 2025, PMI stood at 58.4, climbing to 59.1 in July — it’s highest in 16 months, before inching up further to 59.3 in August.

This latest reading signalled the fastest improvement in operating conditions in over 17 years.

The contribution of manufacturing sector in the economy is evident with the rise in exports. In April-August 2025, total exports rose 6.18 per cent to $349.35 Billion.

The cumulative value of merchandise exports during April-August 2025 was $184.13 Billion, as compared to $179.60 Billion during April-August 2024, registering a positive growth of 2.52 per cent, as per the government data.

With the visible development in manufacturing sector, it shows that the sector has potential to reach Rs. 87,57,000 crore ($1 trillion) in FY26 and potentially add more than Rs. 43,43,500 crore ($500 billion) annually to the global economy by 2030, which indicates that India is steadily cementing its position as a global manufacturing hub.

August 2025 data shows Unemployment Rate (UR) among male easing to 5-month low level to 5.0 per cent.

With global supply chains undergoing a strategic realignment, India has a unique window of opportunity to step forward as the preferred destination for investment, innovation, and large-scale production.

If this momentum is sustained, India can transform from being the “factory of the world” to becoming the “innovation and leadership hub of the world.”

—IANS

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