The Manufacturing Market in India Report is Segmented by Ownership (Public Sector, Private Sector, Joint Sector, and Cooperative Sector), Raw Materials Used (Agro-Based Industries and Mineral-Based Industries), and End-User Industry (Automotive, Manufacturing, Textile and Apparel, Consumer Electronics, Construction, Food and Beverages, and Other End-User Industries). The Report Offers Market Sizes and Forecasts in Value Terms (USD) for all the Above Segments.

The index of Industrial Production for the manufacturing sector across India in the financial year of 2023 stood at 137.1. This was a growth rate of 4.7 percent as compared to the previous financial year.

India Manufacturing Industries: Leather and Related Products: Total Emoluments data was reported at 64,382.700 INR mn in 2017. This records an increase from the previous number of 57,970.500 INR mn for 2016. India Manufacturing Industries: Leather and Related Products: Total Emoluments data is updated yearly, averaging 30,308.600 INR mn from Mar 2009 (Median) to 2017, with 9 observations. The data reached an all-time high of 64,382.700 INR mn in 2017 and a record low of 16,499.500 INR mn in 2009. India Manufacturing Industries: Leather and Related Products: Total Emoluments data remains active status in CEIC and is reported by Central Statistics Office. The data is categorized under India Premium Database’s Mining and Manufacturing Sector – Table IN.BAC011: Manufacturing Industry: NIC 2008: Leather and Related Products.

The manufacturing industry in India has emerged as a fast-growing sector owing to the rapidly increasing population in the country. Investments in the sector have been on the rise and initiatives like ‘Make in India’ aim to the South Asian country into a global manufacturing hub. The annual production growth rate in the manufacturing industry was 4.7 percent percent during fiscal year 2023.

Foreign and domestic enterprises

The gross value added by the manufacturing sector in India has grown steadily however it is still lower than services sector. With the prospect of a huge consumer market, global giants such as Siemens, HTC, Toshiba have already set-up or are in the process of setting up manufacturing plants across the region. Apple has also been setting up nascent operations in India to diversify from China-centered production. On the other hand, the micro, small and medium enterprises sector is also crucial to transforming India from an agriculture-based economy to an industrialized one. MSME's contribution to Indian GDP has remained stable over the last few years.

The future

With technology reaching what previously were unimaginable heights in the last decade, industries need to keep up with the current trends and the technology. The focus is shifting towards machine learning to improve the efficiency and precision of the work. Almost 50 percent of the decision-makers in the machine learning industry believed that machine learning solutions have a high impact on organizations. ‘Smart manufacturing’, a combination of internet of things and artificial intelligence are expected to see a growth in the coming decade.

The India Manufacturing Sector Market offers a diverse range of products, including automobiles, machinery, electronics, and pharmaceuticals. The automotive industry is one of the largest segments, driven by factors such as increasing urbanization, rising disposable income, and government initiatives to promote domestic manufacturing. The machinery segment is also experiencing growth, supported by the expanding manufacturing base and the need for automation. The electronics industry is witnessing significant demand due to the growing adoption of consumer electronics and the proliferation of the digital economy. The pharmaceutical industry is driven by factors such as increasing healthcare expenditure and the rise of chronic diseases. Recent developments include: January 2023: Sundram Fasteners, an auto component manufacturer, secured its largest-ever EV contract in its six-decade history. The Chennai-based company clinched a USD 250 million deal from a prominent global automobile manufacturer to supply sub-assemblies for its electric vehicle (EV) platform. Sundram Fasteners anticipates reaching an annual sales peak of USD 52 million by 2026, with a supply of 1.5 million drive unit sub-assemblies per annum., January 2023: Tata Motors, a multinational automotive manufacturing company based in India, disclosed plans to potentially establish plants in India and Europe for manufacturing battery cells dedicated to electric vehicles (EVs). The Chief Financial Officer of Tata Motors' auto unit revealed this information in an interview with Reuters. Tata Motors, which has sold a total of 50,000 electric cars thus far, dominates India's EV market and aims to introduce 10 electric models by March 2026.. Key drivers for this market are: Increasing demand for products in sectors like automotive, consumer electronics, and pharmaceuticals, both domestically and internationally, is fueling the expansion of manufacturing activities in India. Potential restraints include: Inadequate infrastructure, including poor transportation networks, inconsistent power supply, and inefficient logistics, which raise operational costs and hinder the smooth functioning of industries. Notable trends are: Growing government spending and the large and growing population, coupled with a rising middle class, are driving the market growth.

Graph and download economic data for Production, Sales, Work Started and Orders: Production Volume: Economic Activity: Manufacturing for India (INDPROMANAISMEI) from 1995 to 2023 about India, production, and manufacturing.

India Manufacturing Industries: Food Products: Total Output data was reported at 10,238,816.600 INR mn in 2017. This records an increase from the previous number of 8,674,032.100 INR mn for 2016. India Manufacturing Industries: Food Products: Total Output data is updated yearly, averaging 6,982,078.200 INR mn from Mar 2009 (Median) to 2017, with 9 observations. The data reached an all-time high of 10,238,816.600 INR mn in 2017 and a record low of 3,722,440.800 INR mn in 2009. India Manufacturing Industries: Food Products: Total Output data remains active status in CEIC and is reported by Central Statistics Office. The data is categorized under India Premium Database’s Mining and Manufacturing Sector – Table IN.BAC010: Manufacturing Industry: NIC 2008: Food Products.

The manufacturing execution system (MES) industry in India is estimated to be valued at USD 1,189.3 million in 2024. From 2024 to 2034, sales of manufacturing execution systems solutions in India are expected to witness a CAGR of 9.5% and total industry size of USD 2,930.3 million by 2034-end.

Attributes	Details
Estimated India Manufacturing Execution System Industry Size (2024E)	USD 1,189.3 million
Projected India Manufacturing Execution System Industry Value (2034F)	USD 2,930.3 million
Value-based CAGR from 2024 to 2034	9.5%

Zone-wise Insights

Zone	CAGR 2024 to 2034
North Zone	9.5%
South Zone	10.2%
East Zone	8.4%
West Zone	9.6%
Central Zone	8.8%
North East Zone	7.8%

Category-wise Insights

Segment	On-premises Manufacturing Execution System Platforms (Solution)
Value Share (2024)	59.3%

Segment	Production Scheduling and Planning (Application)
Value Share (2024)	23.3%

India Manufacturing Industries: Other Manufacturing: Total Input data was reported at 1,812,390.600 INR mn in 2017. This records an increase from the previous number of 1,616,814.600 INR mn for 2016. India Manufacturing Industries: Other Manufacturing: Total Input data is updated yearly, averaging 1,561,808.500 INR mn from Mar 2009 (Median) to 2017, with 9 observations. The data reached an all-time high of 1,989,791.300 INR mn in 2015 and a record low of 635,553.600 INR mn in 2009. India Manufacturing Industries: Other Manufacturing: Total Input data remains active status in CEIC and is reported by Central Statistics Office. The data is categorized under India Premium Database’s Mining and Manufacturing Sector – Table IN.BAC016: Manufacturing Industry: NIC 2008: Other Manufacturing.

India Manufacturing Industries: Number Of Factories data was reported at 249,987.000 Unit in 2022. This records a decrease from the previous number of 250,454.000 Unit for 2021. India Manufacturing Industries: Number Of Factories data is updated yearly, averaging 132,814.000 Unit from Mar 1982 (Median) to 2022, with 41 observations. The data reached an all-time high of 250,454.000 Unit in 2021 and a record low of 93,166.000 Unit in 1983. India Manufacturing Industries: Number Of Factories data remains active status in CEIC and is reported by Ministry of Statistics and Programme Implementation. The data is categorized under India Premium Database’s Mining and Manufacturing Sector – Table IN.BAC001: Manufacturing Industry: NIC 2008: All Industries.

The manufacturing sector in India employed over 18.4 million people in the financial year 2023. This was a growth of over 7 percent as compared to the previous financial year. Industries driving the sector's growth included basic metals, coke and refined petroleum, food products, and chemicals among others.

In 2023, India's manufacturing sector's GDP share was around 13 percent. The share remained the same as compared to the last year and declined from 17 percent in 2010. Value added is the net output of the manufacturing sector after adding all outputs and subtracting intermediate inputs. The manufacturing sector employs over 27 million workers. Boosting manufacturing As global economies aim to reduce reliance on China or adopt a China-plus strategy, India has emerged as a potent alternative manufacturing hub. The Make in India initiative was launched to foster and strengthen India’s global manufacturing status by enhancing foreign direct investments, skill development, and updating manufacturing infrastructure. Under the Production Linked Incentive (PLI) Scheme, companies are incentivized to promote domestic production and enhance manufacturing competitiveness. Despite efforts, experts expressed doubts about the government’s ambition to raise the share of manufacturing to GDP to 25 percent by 2025.
Hurdles for manufacturing As per the World Bank, India’s share in global trade has not kept pace with its rapidly growing economy. It is losing ground to countries like Bangladesh and Vietnam in key low-cost and low-skill manufacturing export sectors. Manufacturing productivity in India has remained low. and the availability of capital also remains an obstacle for the manufacturing sector. Inadequate investments in technology, infrastructure, and research and development (R&D) can also impact productivity growth. Other factors include regulatory compliance burdens, complex labor laws, red tape, and inefficient supply chains.

Graph and download economic data for Production: Manufacturing: Consumer Goods: Total for India (PRMNCG01INQ661S) from Q2 1994 to Q1 2017 about India, production, consumer, goods, and manufacturing.

Wages In Manufacturing in India increased to 347.30 INR/Day in 2014 from 322.07 INR/Day in 2013. This dataset provides the latest reported value for - India Average Daily Real Wage Rate in Manufacturing - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

Graph and download economic data for Production: Manufacturing: Total Manufacturing for India (INDPRMNTO01GYSAQ) from Q2 1995 to Q4 2024 about India, production, and manufacturing.

India Manufacturing Industries: Net Income data was reported at 15,799,401.600 INR mn in 2022. This records an increase from the previous number of 11,574,771.400 INR mn for 2021. India Manufacturing Industries: Net Income data is updated yearly, averaging 1,166,497.300 INR mn from Mar 1982 (Median) to 2022, with 41 observations. The data reached an all-time high of 15,799,401.600 INR mn in 2022 and a record low of 110,745.800 INR mn in 1982. India Manufacturing Industries: Net Income data remains active status in CEIC and is reported by Ministry of Statistics and Programme Implementation. The data is categorized under India Premium Database’s Mining and Manufacturing Sector – Table IN.BAC001: Manufacturing Industry: NIC 2008: All Industries.

In financial year 2023, the manufacturing output of the electronics sector in India reached over 8.2 trillion Indian rupees in total. It is one of the fastest growing sectors in India, especially the mobile phone manufacturing industry. India has favorable government policies and regulatory support for the electronics industries, and along with growing domestic and exporting demands, India is on track to become an electronics manufacturing powerhouse in the future.

In the financial year 2022, the share of MSMEs in total manufacturing output in India was over 36 percent, a decrease from the previous financial year was registered. The sector's contribution to manufacturing output has witnessed a contraction since financial year 2018.

India Manufacturing Industries: Fabricated Metal Products, except Machinery and Equipment: Total Output data was reported at 2,040,226.700 INR mn in 2017. This records an increase from the previous number of 1,910,128.700 INR mn for 2016. India Manufacturing Industries: Fabricated Metal Products, except Machinery and Equipment: Total Output data is updated yearly, averaging 1,723,981.500 INR mn from Mar 2009 (Median) to 2017, with 9 observations. The data reached an all-time high of 2,040,226.700 INR mn in 2017 and a record low of 1,000,974.300 INR mn in 2009. India Manufacturing Industries: Fabricated Metal Products, except Machinery and Equipment: Total Output data remains active status in CEIC and is reported by Central Statistics Office. The data is categorized under India Premium Database’s Mining and Manufacturing Sector – Table IN.BAC009: Manufacturing Industry: NIC 2008: Fabricated Metal Products, except Machinery and Equipment.

Graph and download economic data for Production: Manufacturing: Intermediate Goods: Total for India (INDPRMNIG01IXOBSAM) from Apr 1994 to Dec 2018 about intermediate, India, production, and manufacturing.