Manufacturing surge reshapes India's export logistics play

India's ambitious manufacturing push aims for a 25% GDP share by 2035. It is gaining momentum and transforming the nation's export logistics landscape.

- By Nikitha Sebastian

As export volumes continue to rise, the focus has shifted beyond production to the efficiency of moving goods to global markets with speed, reliability, and cost effectiveness. Behind every container bound for Europe or every high-value shipment headed to the United States is a logistics backbone under pressure and undergoing rapid transformation. This shift is supported by strong manufacturing momentum. According to the Press Information Bureau (PIB), the sector recorded Gross Value Added (GVA) growth of 7.72 per cent in Q1 and 9.13 per cent in Q2 of FY 2025-26. Medium- and high-technology industries now contribute 46.3% of manufacturing value added, reflecting a move toward more complex and higher-value production. Export performance has also strengthened, reaching $634.3 billion during April–December 2025, marking a 4.3 per cent year-on-year increase.

Manufacturing expansion reshaping export cargo flows

Manufacturing's contribution to India's GDP has risen in recent years. As per PIB and Economic Survey data, growth has been most visible in electronics, engineering goods, automobiles and components, and agro-processed and pharmaceutical exports. These sectors depend on strict lead-time adherence and frequent global shipments. As industrial clusters expand across Gujarat, Tamil Nadu, Telangana, and the Delhi-NCR region, the nature of export cargo is evolving. There is a clear shift towards high-value and high-frequency shipments, with reduced reliance on bulk commodities.

As Anish Kumar Jha, Managing Director – India, Sri Lanka, and Maldives, Kuehne + Nagel, explains, “India's manufacturing growth is reshaping export cargo flows in a more distributed and adaptive way. As production expands across sectors such as electronics, automotive, chemicals and pharmaceuticals, export activity is spreading beyond traditional port-centric hubs to align more closely with inland manufacturing clusters.”