India Manufacturing Sector Market Overview
As per MRFR analysis, the India Manufacturing Sector Market Size was estimated at 329.43 (USD Billion) in 2024. The India Manufacturing Sector Market Industry is expected to grow from 355.79 (USD Billion) in 2025 to 711.35 (USD Billion) till 2034, at a CAGR (growth rate) is expected to be around 8.20% during the forecast period (2025 - 2034).
The 'Make in India' initiative is a government-driven campaign designed to promote domestic manufacturing. Furthermore, through policy reforms and incentives, comprising the Production Linked Incentive (PLI) scheme, the government has pro-actively incentivized various manufacturing industries, such as automobiles, electronics, and textiles. These are the main market drivers anticipated to propel the Manufacturing Sector market in India.
Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review
India Manufacturing Sector Market Trends
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Growing government spending and the large and growing population, coupled with a rising middle class, are driving the market growth
Manufacturing has emerged as a key growth sector in India, with Prime Minister Narendra Modi launching the 'Make in India' program to position the country as a global manufacturing hub and enhance its economic standing worldwide. The government of India has implemented various initiatives to foster a conducive environment for the expansion of the manufacturing sector, which is driving the market CAGR.
In the Union Budget 2022-23, Rs. 2,403 crores (USD 315 million) were allocated for promoting electronics and IT hardware manufacturing, while a substantial Rs. 760 billion (USD 9.71 billion) was earmarked for the Production Linked Incentive (PLI) scheme aimed at semiconductor manufacturing, to position India as a major global producer in this crucial area.Â
The PLI scheme, spanning 13 sectors including electronics, pharmaceuticals, and textiles, has catalyzed investment and is anticipated to yield a production value of Rs. 14.3 lakh crore over the next five years, underscoring the government's commitment to fostering a conducive manufacturing environment, a commitment likely to persist in the future.
India's vast and expanding population, alongside a burgeoning middle class, is poised to create a favorable demand landscape for the manufacturing sector. According to the United Nations projections, India's population is expected to reach 1.5 billion by 2030, with the middle-class segment projected to swell from 600 million in 2020 to 1.3 billion by 2030. This substantial increase in the middle-class demographic is anticipated to drive demand for manufactured goods, further enhancing the growth prospects of the manufacturing industry.
Therefore, the market is expanding due to the Growing Government Spending and the large and growing population, coupled with a rising middle class. Thus, driving the India Manufacturing Sector market revenue.
Manufacturing Sector Market Segment Insights
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Manufacturing Sector Ownership Insights
The India Manufacturing Sector market segmentation, based on Ownership, includes Public Sector, Private Sector, Joint Sector, and Cooperative Sector. The public sector segment dominated the market mostly. The government's emphasis on infrastructure development has created a favorable environment for the expansion of the public sector manufacturing segment. Investments in critical areas such as roads, railways, ports, and power tools have stimulated demand for products manufactured by the public sector.
In an effort to enhance rail connectivity and facilitate commuter travel, the Union Cabinet sanctioned seven projects for the Ministry of Railways in August 2023, totaling approximately Rs. 32,500 crore (US$ 3.93 billion).Â
These projects, spanning 35 districts across nine states including Uttar Pradesh, Bihar, Telangana, Andhra Pradesh, Maharashtra, Gujarat, Odisha, Jharkhand, and West Bengal, will extend the existing railway network by 2,339 kilometers. In the fiscal year 2022-23, the North Western Railway recorded the highest growth in freight earnings, amounting to Rs. 6,839.93 crore (US$ 832.39 million), marking a 30.82% increase compared to the previous year's earnings of Rs. 5,228.13 crore (US$ 636.3 million). Additionally, freight loading surged to 32.69 million tonnes, representing a 10.07% rise from the previous year's loading of 29.70 million tonnes.
Manufacturing Sector Raw Materials Used Insights
The India Manufacturing Sector market segmentation, based on Agriculture Equipment, Raw Materials Used, includes Agro Based Industries and Mineral Based Industries. The agro-based industries generated the most income. India's diverse agro-climatic conditions enable the cultivation of a wide range of crops, forming a robust foundation for the growth of agro-based industries that utilize agricultural produce as raw materials for various products. According to Inc42, the Indian agricultural sector is projected to reach US$ 24 billion by 2025.Â
The Agriculture and Allied industry sector has witnessed significant developments, investments, and government support in recent years. Between April 2000 and September 2023, Foreign Direct Investment (FDI) in agriculture services amounted to US$ 4.77 billion. The Indian food processing industry, as per the Department for Promotion of Industry and Internal Trade (DPIIT), has cumulatively attracted an FDI equity inflow of approximately US$ 12.35 billion between April 2000 and September 2023, accounting for 1.89% of total FDI inflows across industries.
In December 2023, NBCC signed a Memorandum of Understanding (MoU) with the National Cooperative Development Cooperation (NCDC) and NABARD for the construction of the world's largest grain storage plan in the cooperative sector, consisting of 1,469 grain storage units.
Figure 1: India Manufacturing Sector Market, by Raw Materials Used, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review
Manufacturing Sector End-user Industries Insights
The India Manufacturing Sector market segmentation, based on End-user Industries, includes Automotive, Manufacturing, Textile and Apparel, Consumer Electronics, Construction, Food and Beverages, and Other End-user Industries. The automotive category generated the most income. In India, in November 2023, the combined production of passenger vehicles, three-wheelers, two-wheelers, and quadricycles amounted to 2.22 million units. From April to November 2024-25, the total production of passenger vehicles, commercial vehicles, three-wheelers, two-wheelers, and quadricycles reached 15.56 million units, positioning India as one of the leading countries globally in terms of vehicle manufacturing.Â
The electric vehicle (EV) market in India is forecasted to achieve a valuation of Rs. 50,000 crore (US$ 7.09 billion) by 2025, with a study by CEEW Centre for Energy Finance identifying a US$ 206 billion opportunity for electric vehicles in India by 2030. To realize this potential, an investment of US$ 180 billion in vehicle manufacturing and charging infrastructure will be required.
The Production Linked Incentive (PLI) scheme, with an outlay of USD 3.5 billion for the automobile sector, proposes financial incentives of up to 18% to stimulate domestic manufacturing of advanced automotive technology products and attract investments across the automotive manufacturing value chain.
Manufacturing Sector Country Insights
The demand for skilled labor is anticipated to fuel the growth of India's manufacturing industry. The government's Skill India Mission aims to upskill 400 million individuals by 2022, with 8.7 million people trained under this initiative as of March 2022. By focusing on upskilling the workforce to meet the requirements of Industry 4.0, the manufacturing sector can ensure access to the skilled labor necessary for its expansion.
The adoption of Industry 4.0 technologies is projected to accelerate, with a focus on enhancing efficiency and reducing costs. As per projections from the Civil Aviation Ministry, the Indian drone industry is expected to generate a turnover ranging from INR 120-150 billion by 2026. Over the next three years, the government aims to secure investments totaling INR 5,000 crore in the drone manufacturing sector, aiming to create more than 10,000 job opportunities. The government's National Policy on Advanced Manufacturing aims to promote the utilization of advanced technologies in manufacturing, further driving the adoption of Industry 4.0 technologies.
Indian manufacturing is shifting towards digitalization, with an estimated expenditure of $5.5 - $6.5 billion on Industry 4.0 in FY21. Approximately 50% of this expenditure is allocated to foundational technologies such as Cloud and IoT. Additionally, 35 - 40% of companies are at the Proof of Concept (PoC) stage and will require a rapid transition from PoC to production.
Manufacturing Sector Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development to expand their product lines, which will help the Manufacturing Sector market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Manufacturing Sector industry must offer cost-effective items.
Major players in the Manufacturing Sector market are attempting to increase market demand by investing in research and development operations, including Tata Motors Ltd, Mahindra & Mahindra Limited, Ashok Leyland, Hindustan Unilever Limited, Godrej Group, Maruti Suzuki Limited, Tata Steel Limited, Larsen & Toubro Limited, Apollo Tyres, Moser Baer.
Key Companies in the Manufacturing Sector market include
- Mahindra & Mahindra Limited
- Hindustan Unilever Limited
India Manufacturing Sector Market Developments
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Q1 2025: Apple shifts part of its mobile phone manufacturing from China to India Apple moved a portion of its mobile phone manufacturing operations from China to India, contributing to a surge in India's mobile phone exports, which reached $20.4 billion in 2024, up 44% from the previous year.
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Q1 2025: India’s Production Linked Incentive schemes boost electronics, pharmaceuticals and automobile exports The Indian government's Production Linked Incentive (PLI) schemes, introduced since March 2020, have significantly increased exports in electronics, pharmaceuticals, and automobiles, with notable growth in mobile phone exports in 2024.
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Q1 2025: India’s manufacturing sector witnesses record-high job creation in May 2025 India’s manufacturing sector saw record-high job creation in May 2025, as companies hired additional staff at the fastest rate in the current data series, according to PMI figures released by S&P Global.
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Q2 2025: India’s manufacturing PMI climbs to 58.4 in June 2025, highest since April 2024 India’s manufacturing activity saw a strong boost in June 2025, with the PMI climbing to 58.4, fueled by a robust increase in new orders and export demand, prompting manufacturers to scale up hiring.
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Q3 2025: HSBC India Manufacturing PMI revised slightly lower to 59.1 in July 2025 The HSBC India Manufacturing PMI was revised to 59.1 in July 2025, marking the highest level since March 2024, with new orders rising sharply and output growth reaching a fifteen-month high.
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Q3 2025: India Factory Growth Hits 17-Year Peak India’s manufacturing sector reached a 17-year peak in July 2025, as the HSBC India Manufacturing PMI climbed to 59.2, signaling robust expansion and strong increases in output and new orders.
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Q3 2025: India's manufacturing sector faces 50% U.S. tariffs under Trump's 2025 policies, threatening 20% of its exports President Donald Trump’s 2025 trade policies introduced a 50% tariff on Indian goods, threatening 20% of India’s manufacturing exports and prompting strategic diversification efforts by Indian manufacturers.
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Q3 2025: Nirmala Sitharaman announced the 'National Manufacturing Mission' in the Union Budget 2025-26 to boost 'Make in India' India’s Finance Minister Nirmala Sitharaman announced the 'National Manufacturing Mission' in the Union Budget 2025-26, aiming to support industries of all sizes and further strengthen the 'Make in India' initiative.
India Manufacturing Sector Market Segmentation
Manufacturing Sector Ownership Outlook
Manufacturing Sector Raw Materials Used Outlook
Manufacturing Sector End-User Industries Outlook
| Report Attribute/Metric |
Details |
| Market Size 2024 |
 329.43 (USD Billion) |
| Market Size 2025 |
 355.79 (USD Billion) |
| Market Size 2034 |
 711.35 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
    8.20% (2025 - 2034) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2024 |
| Market Forecast Period |
2025 - 2034 |
| Historical Data |
2019 - 2023 |
| Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Ownership, Raw Materials Used, End-User Industries, and Region |
| Countries Covered |
India |
| Key Companies Profiled |
Tata Motors Ltd, Mahindra & Mahindra Limited, Ashok Leyland, Hindustan Unilever Limited, Godrej Group, Maruti Suzuki Limited, Tata Steel Limited, Larsen & Toubro Limited, Apollo Tyres, Moser Baer |
| Key Market Opportunities |
·        The adoption of Industry 4.0 technologies |
| Key Market Dynamics |
·        Rising income levels, urbanization, and increased consumer spending |
Frequently Asked Questions (FAQ):
The India Manufacturing Sector market size was valued at USD 329.43 Billion in 2024.
The market is projected to grow at a CAGR of 8.20% during the forecast period, 2025-2034.
The key players in the market are Tata Motors Ltd, Mahindra & Mahindra Limited, Ashok Leyland, Hindustan Unilever Limited, Godrej Group, Maruti Suzuki Limited, Tata Steel Limited, Larsen & Toubro Limited, Apollo Tyres, Moser Baer.
The Public Sector category dominated the market in 2023.
The Automotive segment had the largest share of the market.
