Manufacturing Momentum:Building a Self-Reliant India

Loco News Bureau :  

 

Introduction
As India celebrates its 80th Independence Day, the nation’s manufacturing sector stands as a pillar of self-reliance and progress. Over the past 12 years, bold reforms under the Make in India vision have reshaped industries, positioning the country as a global hub. Defence equipment, textiles, pharmaceuticals, medical devices, and heavy machinery are now produced at world-class standards, serving both domestic and international markets. To further accelerate this momentum, the Government has introduced several initiatives like the Production Linked Incentive (PLI) scheme, PM GatiShakti, the National Logistics Policy, BHAVYA, and programmes for the electronics and MSME sectors.

 

Strengthening India’s Manufacturing Ecosystem 
The manufacturing sector now contributes about 16–17 percent of GDP and employs over 27 million workers. The compounded annual growth rate (CAGR) of Manufacturing GVA at constant prices (2022-23 base) as per the revised series during 2022-23 to 2025-26 is 10.88%. Merchandise exports in July 2026 reached USD 44.24 billion, compared to USD 36.98 billion a year earlier, while manufacturing output grew 7.8 percent in June 2026. These indicators show manufacturing as a central driver of India’s economic growth.

 

India’s Defence Transformation: From Self-Reliance to Global Exports
India’s defence industry has undergone a remarkable transformation in the past decade. Focused policies, targeted investments, and a strong push for self-reliance have turned the country into a significant producer and exporter of defence equipment.

 

Key Facts:

• The value of indigenous defence production reached a record ₹1.78 lakh crore in FY 2025–26. This marked 15.6% growth from ₹1,54,071 crore in the previous fiscal and ₹46,429 crore in 2014–15.
• Defence exports surged from ₹686 crore in 2013–14 to ₹38,424 crore in 2025–26.
• Indian defence products are now exported to 80+ countries, showing over 5,500% growth in the last twelve years.
• Defence PSUs and other PSUs contributed around 76% of total production in FY 2025–26.
• The private sector’s share rose to 24%, reflecting greater industry participation.
• Till May 2026, 10 Positive Indigenisation lists, five each of DMA & DDP, covering 5,521 items, were notified, resulting in increased Aatmanirbharta in defence production.
• Srijan Defence Equipment Empowerment Platform (DEEP) is a digital repository promoting indigenous defence sourcing. As of May 2026, it listed over 41,000 vendors and 2.7 lakh products, strengthening domestic supply chains.

 

India’s Electronics Boost
India has rapidly evolved into a major centre for electronics production, achieving exceptional growth in both output and exports. Successive policies like the National Policy on Electronics, SPECS, EMC 2.0, and PLI have reshaped electronics manufacturing. Schemes such as Electronics Components Manufacturing Scheme (ECMS) further strengthened India’s Electronics System Design and Manufacturing (ESDM) ecosystem, driving growth and competitiveness. Electronics production rose from ₹11.32 lakh crore in FY 2024–25 to ₹13.11 lakh crore in FY 2025–26, a 15.8% year-on-year increase.

 

Semicon Manufacturing

India's emergence as a semiconductor destination has been built on sustained reforms across the electronics sector. The Semicon India Programme (Semicon 1.0) was approved in December 2021 with an outlay of ₹76,000 crore. It was launched to build a domestic semiconductor and display manufacturing ecosystem. Building on it, Semicon 2.0 has been approved in July, 2026 with a total budget outlay of ₹1,27,500 crore.

 

Progress Under Semicon India Programme 1.0

As of July 2026, twelve manufacturing units have been approved with investments exceeding ₹1.64 lakh crore. These include one silicon fab, one silicon carbide fab, an integrated Gallium Nitride Micro LED display fab, and nine packaging units. Together, they are expected to meet chip requirements across consumer appliances, industrial electronics, automobiles, power electronics, telecommunications, and aerospace.

 

Out of the twelve approved proposals, three companies, Micron, Kaynes, and CG Semi have already started commercial production. One more company is expected to begin operations in 2026, further strengthening India’s semiconductor manufacturing base.

 

India’s Mobile Manufacturing Rise

India’s mobile manufacturing sector has grown rapidly, strengthening domestic production, exports and value addition.

• 99.2% of mobile phones used in India are now made domestically.
• India is the world’s second-largest mobile phone manufacturer by volume.
• India has shifted from a net importer to a net exporter of mobile phones since 2014.
• PLI scheme for Large Scale Electronic Manufacturing (LSEM) has attracted around ₹96,000 crore in investments across the mobile manufacturing ecosystem.
• Domestic value addition reached 23% in FY 2023–24, alongside strong growth in production and exports.
• Smartphones became India’s top individual exported commodity in FY 2025–26, surpassing petroleum, gems and jewellery.
   

Mobile Phone Manufacturing Scheme: 

This scheme was approved on July 15, 2026, with a ₹62,500 crore budget. It focusses on boosting production, domestic value addition, supply chain resilience and global competitiveness. The five-year scheme will run from FY 2026–27 to FY 2030–31. Incentives range from 2.25% to 5%, with additional support for local sourcing, Indian brands, design and R&D.

 

India’s Pharma Edge: Scaling Manufacturing and Exports
India ranks 3rd in volume and 11th in value in the global pharmaceutical industry. It plays a crucial role in ensuring affordable healthcare worldwide by supplying 20% of the world’s generic medicines and a large share of vaccines. Steady growth in production, exports, and domestic innovation has reinforced its position as a trusted global supplier.

 

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