Manufacturing Momentum: Building a Self-Reliant India

Key Highlights:

• India's manufacturing sector contributes 16-17% to GDP, with a Manufacturing GVA CAGR of 10.88% from 2022-23 to 2025-26.
• Defence production reached ₹1.78 lakh crore in FY 2025–26, with exports surging over 5,500% to ₹38,424 crore.
• Electronics production grew sevenfold to ₹13.11 lakh crore by FY 2025–26, making India the world’s second-largest mobile phone manufacturer.
• The Semicon India Programme has approved 12 manufacturing units with investments exceeding ₹1.64 lakh crore, including three units that have started commercial production.
• India ranks 3rd globally in pharmaceutical volume, with PLI schemes attracting over ₹51,997 crore in investments and achieving ₹3.88 lakh crore in cumulative sales.
• A comprehensive package of ₹69,725 crore was announced for the maritime sector, including the Shipbuilding Development Scheme and Maritime Development Fund.
• The Container Manufacturing Assistance Scheme (CMAS), with ₹10,000 crore outlay, targets an annual domestic capacity of 7.5 lakh TEUs.

Detailed Insights:

• The Make in India vision has transformed industries like defence, textiles, pharmaceuticals, and electronics into global hubs.
• Government initiatives like PM GatiShakti and the National Logistics Policy further support manufacturing momentum.
• Defence exports now reach over 80 countries, demonstrating India's shift from self-reliance to a global exporter.
• Positive Indigenisation lists for defence, covering 5,521 items, have significantly boosted Aatmanirbharta.
• The Srijan Defence Equipment Empowerment Platform (DEEP) lists over 41,000 vendors, strengthening domestic supply chains.
• Electronics exports grew elevenfold to ₹4.24 lakh crore by FY 2025–26, driven by policies like the National Policy on Electronics.
• Mobile phone exports increased 165 times, with 99.2% of phones used in India now manufactured domestically.
• The PLI scheme for Large Scale Electronic Manufacturing (LSEM) attracted ₹96,000 crore in investments.
• The Mobile Phone Manufacturing Scheme (₹62,500 crore) aims to boost production and domestic value addition from FY 2026–27 to FY 2030–31.
• India supplies 20% of the world’s generic medicines and a large share of vaccines, reinforcing its global pharmaceutical role.
• The Scheme for promotion of Bulk Drug Parks established three parks in Andhra Pradesh, Gujarat, and Himachal Pradesh.
• The Biopharma SHAKTI Scheme (₹10,000 crore) was announced in Union Budget 2026-27 for healthcare advancement.
• The textile and apparel industry is the second-largest employer after agriculture, contributing 11% to manufacturing GVA.
• Initiatives like PM MITRA Parks and the National Technical Textiles Mission aim to enhance textile sector competitiveness.
• The Shipbuilding Financial Assistance Scheme (SBFAS) allocates ₹24,736 crore to address cost disadvantages in shipbuilding.
• India is the world’s largest market for two-wheelers and three-wheelers, and third-largest for passenger and commercial vehicles.
• The PLI Scheme for Automobile & Auto Components Industry attracted ₹44,326 crore in investment by March 2026.
• The PM E-DRIVE Scheme (₹10,900 crore) supports electric mobility, incentivizing around 28.30 lakh EVs.
• Solar PV module capacity under ALMM reached 100 GW in August 2025, up from 2.3 GW in 2014.
• The PLI scheme for high-efficiency solar PV module manufacturing has awarded 48 GW integrated PV capacity.

Key Concepts Involved:

• Production Linked Incentive (PLI) scheme: Government scheme offering incentives on incremental sales to manufacturers for products made in domestic units.
• Aatmanirbharta: The concept of self-reliance, aiming to reduce import dependence and boost domestic production.
• Gross Value Added (GVA): A measure of the value of goods and services produced in an area, industry, or sector of an economy.
• Twenty-foot Equivalent Units (TEUs): A standard unit for describing the capacity of container ships and terminals, equivalent to a 20-foot long container.