Reinvigorating India's Manufacturing Momentum

Manufacturing growth may falter without urgent course correction.

- AJAY S. SHRIRAM

THE MANUFACTURING SECTOR has long been a cornerstone of India's growth ambitions, providing livelihoods, strengthening exports, and fuelling innovation. Yet, in recent years, its share in GDP has moderated—from 17% in 2010 to about 13% in 2024. While this signals the need for immediate attention, it also underscores the vast untapped opportunity ahead.

A tale of contrasts

A look at our global peers shows how manufacturing can drive sustained growth. Vietnam, for instance, demonstrates what coordinated policies, agile execution, and strong infrastructure can deliver. It began its journey on a par with India in 2010 but has since increased its manufacturing share to 24% of GDP by 2024.

Within India, too, the picture is uneven. States like Gujarat, Tamil Nadu, and Maharashtra account for nearly a third of the country's manufacturing output. Gujarat's success stems from a stable, investor-friendly environment, robust infrastructure, MSME-focussed clusters, and scale-oriented policies. This model offers lessons for other states where industrial potential remains underutilised.

Sectoral realities