India Manufacturing Tracker 2025

India is keen to expand its manufacturing sector, with a focus on diversifying into newer lines of production, advancing the industrial capacity of traditional sectors like automobiles, and establishing a globally competitive domestic supply chain ecosystem.

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The central government is actively pushing to raise the share of manufacturing in the national economy through flagship programmes such as the Production-Linked Incentive (PLI) scheme, covering 14 key sectors, and a wide range of state-level industrial policies.

Over the past decade, India’s manufacturing sector has expanded steadily but has yet to fully capitalise on the country’s vast labour pool and domestic market. Manufacturing momentum has picked up, fuelled by rising foreign investment and the relocation strategies of global manufacturers seeking to diversify supply chains beyond China.

In FY 2024-25, the manufacturing output was 4.26 per cent, a substantial growth from 1.4 per cent in FY 2023-24.

Against this backdrop, we present the 2025 India Manufacturing Tracker – highlighting key production trends, industry statistics, and government initiatives shaping the sector’s trajectory.

India’s Purchasing Managers’ Index

PMI month-on-month	Output (%)
November 2025	56.6
October 2025	59.2
September 2025	57.7
August 2025	59.3
July 2025	59.1
June 2025	58.4
May 2025	57.6
April 2025	58.2
March 2025	58.1
February 2025	58.8
January 2025	57.7

Source: HSBC India Manufacturing PMI

PMI is an economic indicator based on monthly surveys of companies. It tracks trends in both the manufacturing and services sectors, showing whether business conditions are expanding, contracting, or staying the same.

There are two types of PMI:

1. Manufacturing PMI
2. Services PMI

A combined PMI includes both sectors.

How is manufacturing PMI calculated?

It is derived by sending fact-based questions to a large number of companies in the concerned sector. For manufacturing PMI, a questionnaire is sent to manufacturing companies. Survey questions are factual in nature, and the survey is not meant for opinions, intentions, or expectations.

The PMI is based on five key factors:

1. New orders (30%)
2. Output (25%)
3. Employment (20%)
4. Suppliers’ delivery times (15%)
5. Stock of items purchased (10%)

A PMI above 50 indicates business expansion, while below 50 signals contraction. The difference between 50 and the previous month’s data shows the rate of change.

PMI is released before other economic indicators like GDP and industrial output, offering early insight into economic trends. It’s useful for manufacturers, suppliers, and investors to gauge economic health and make informed decisions.

Index of Industrial Production (IIP)

In India, IIP tracks the growth rates of three key sectors—mining, manufacturing, and electricity—on a month-on-month basis. Manufacturing remains the largest contributor, accounting for 77.63 per cent of total industrial production.

According to the IIP data released by the Ministry of Statistics & Programme Implementation on 28 August 2025, within the manufacturing sector, 14 out of 23 industry groups at the NIC 2-digit level have recorded a positive growth in July 2025 over July 2024. The top three positive contributors for the manufacturing sector in July 2025 were the following:

1. Basic metals: 12.7 per cent
2. Electrical equipment: 15.9 per cent
3. Other non-metallic mineral products: 9.5 per cent

Month	IIP growth over the corresponding period of previous year
October 2025	0.4%
September 2025	4.0%
August 2025	4.0%
July 2025	3.5%
June 2025	1.5%
May 2025	1.9%
April 2025	2.6%
March 2025	3.0%
February 2025	2.9%
January 2025	5.0%

Source: PIB

Reading India’s IIP data

The Ministry of Statistics and Programme Implementation (MoSPI) will release the quick estimates of the IIP on the 28th of every month, or on the next working day if the 28th is a holiday.

October 2025:

• IIP growth rate for the month of October 2025 stood at 0.4 per cent, a sharp decline from 4 per cent in the previous month. As per the Ministry of Statistics and Programme Implementation (MOSPI), the slow growth in the month could be attributed to a smaller number of working days on account of several major Indian festivals in the month.
• The growth rates of the three sectors, mining, manufacturing and electricity, for the month of October 2025 are (-) 1.8 per cent, 1.8 per cent and (-) 6.9 per cent, respectively.
• Within the manufacturing sector, the top three positive contributors for the month of October 2025 are – “manufacture of basic metals” (6.6 per cent), “manufacture of coke and refined petroleum products” (6.2 per cent) and “manufacture of motor vehicles, trailers and semi-trailers” (5.8 per cent).

September 2025:

• IIP growth rate for September stood at 4 per cent, unchanged from the previous month. 
• The growth rates of the three sectors, mining, manufacturing and electricity, for September 2025 are (-)0.4 per cent, 4.8 per cent and 3.1 per cent, respectively.
• Within the manufacturing sector, 13 out of 23 industry groups at the NIC 2-digit level have recorded a positive growth in September 2025 over September 2024. The top three positive contributors for the month of September 2025 are – “manufacture of basic metals” (12.3 per cent), “manufacture of electrical equipment” (28.7 per cent) and “manufacture of motor vehicles, trailers and semi-trailers” (14.6 per cent).

August 2025:

• IIP growth rate for the month of August 2025 is 4.0 per cent.
• The growth rates of the three sectors, mining, manufacturing and electricity, for the month of August 2025 are 6 per cent, 3.8 per cent and 4.1 per cent, respectively.
• Within the manufacturing sector, 10 out of 23 industry groups at the NIC 2-digit level have recorded a positive growth in August 2025 over August 2024. The top three positive contributors for the month of August 2025 are – “manufacture of basic metals” (12.2 per cent), “manufacture of coke and refined petroleum products” (5.4 per cent) and “manufacture of motor vehicles, trailers and semi-trailers” (9.8 per cent).

July 2025: 

• India’s Index of Industrial Production (IIP) grew by 3.5 per cent in July 2025. Sector-wise, mining contracted by 7.2 per cent, while manufacturing expanded by 5.4 per cent and electricity rose by 0.6 per cent.
• Within manufacturing, 14 out of 23 industry groups recorded growth compared to July 2024.
• The key contributors were basic metals, which grew by 12.7 per cent, electrical equipment, which registered 15.9 per cent growth, and other non-metallic mineral products, which increased by 9.5 per cent.

June 2025:

• India’s IIP growth slowed to a 10-month low of 1.5 per cent in June 2025, primarily due to a sharp contraction in mining and a decline in power output, both affected by the early arrival of monsoon rains. In contrast, manufacturing output saw a modest rise of 3.9 per cent, slightly up from 3.5 per cent in June 2024.
• The National Statistics Office (NSO), in a report released on 28 July 2025, revised May 2025’s industrial growth to 1.9 per cent from an earlier estimate of 1.2 per cent. 
• As per data released by the MoSPI on 21 July 2025, India’s Index of Eight Core Industries (ICI) registered a year-on-year growth of 1.7 per cent in June 2025. Sectors such as steel, cement, and petroleum refinery products contributed positively during the month.

May 2025: 

• As per the provisional IIP figures released on 30 June 2025, India’s industrial production growth rate for the month of May is 1.2 per cent. The growth rates of the three sectors, mining, manufacturing, and electricity are -0.1 per cent, 2.6 per cent, and -5.8 per cent, respectively.
• Within the manufacturing sector, the top three positive contributors for the month of May 2025 are manufacture of basic metals (6.4 per cent), manufacture of machinery and equipment (11.8 per cent), and manufacture of other non-metallic mineral products (6.9 per cent).

April 2025:

• As per the latest IIP figures released on 28 May 2025, India’s industrial production growth rate for the month of April 2025 is 2.6 per cent, a dip from the IIP rate of 3 per cent in March. The growth rates of the three sectors, mining, manufacturing, and electricity, for the month of April 2025 are (-)0.2 per cent, 3.4 per cent, and 1.1 per cent, respectively.

March 2025: 

• On 28 April 2025, India’s IIP growth rate for March 2025 was reported at 3.0 per cent, compared to 2.9 per cent (quick estimate) recorded in February 2025.
• Per the latest IIP figures, growth rates of the three sectors, mining, manufacturing and electricity, for the month of March 2025 are 0.4 per cent, 3 per cent and 6.3 per cent, respectively.
• Within the manufacturing sector, the top three positive contributors for the month of March 2025 are – “manufacture of basic metals” (6.9 per cent), “manufacture of motor vehicles, trailers and semi-trailers” (10.3 per cent) and “manufacture of electrical equipment” (15.7 per cent).

February 2025: 

• As per the latest IIP figures, the growth rates of the three sectors, mining, manufacturing and electricity, for the month of February 2025 are 1.6 per cent, 2.9 per cent and 3.6 per cent, respectively.
• Within the manufacturing sector, 14 out of 23 industry groups at the NIC 2-digit level recorded a positive growth in February 2025 over February 2024.
• The top three positive contributors for the month of February 2025 are – “manufacture of basic metals” (5.8 per cent), “manufacture of motor vehicles, trailers and semi-trailers” (8.9 per cent) and “manufacture of other non-metallic mineral products” (8 per cent).

January 2025: 

• As per the latest IIP figures, the growth rates of the three sectors, i.e., mining, manufacturing and electricity, were 4.4 per cent, 5.5 per cent and 2.4 per cent, respectively. 
• Within the manufacturing sector, the top three positive contributors for the month were production of basic metals (6.3 per cent), coke and refined petroleum products (8.5 per cent) and electrical equipment (21.7 per cent).

India’s GDP growth rate

The GDP growth rate measures the change in the value of goods and services produced each quarter, adjusted for seasonal variations. India is the fifth-largest economy globally and the second most populous country.

As of September 2025, the country’s real GDP growth is estimated at 6.5 per cent in FY 2025-26. The real GDP growth for FY 2026-27 is anticipated to grow at 6.4 per cent.

Sector-wise GDP in India in 2024-25

Services: 54.93 per cent

1. Public administration, defense, and other services: 14.55 per cent
2. Financial, real estate, and professional services: 22.92 per cent
3. Trade, hotel, transport, communications, and services related to broadcasting: 17.51 per cent

Industry: 27.13 per cent

1. Mining and quarrying: 2 per cent
2. Manufacturing: 14 per cent
3. Electricity, gas, water supply, and other utilities services: 3 per cent
4. Construction: 9 per cent

Agriculture (including forestry and fisheries): 17.94 per cent

Quarterly assessment	GDP growth rate
Q1 2025-26	7.8
Q4 2024-25	7.4
Q3 2024-25	6.4
Q2 2024-25	5.6
Q1 2024-25	6.5

 

Quarterly assessment	Manufacturing sector contribution to India’s GDP
	Value in INR trillion	Value in US$ billion
Q1 2025-26	7.61	86.38
Q4 2024-25	8.29	94.1
Q3 2024-25	6.95	78.89
Q2 2024-25	7.20	81.73
Q1 2024-25	7.06	80.14

 

Employment Across the Manufacturing Sector in India from FY 2020 to FY 2023
Year	Employment (in millions)
2020	16.6
2021	16.08
2022	17.2
2023	18.49

Source: PLFS Data

According to the Annual Survey of Industries (ASI), employment in India’s manufacturing sector dipped slightly in 2020-21 due to the pandemic but rebounded with 7 per cent year-on-year growth in 2021-22, surpassing pre-pandemic levels by over 935,000 workers. Average salaries also rose, with a 1.7 per cent increase in 2020-21 and an 8.3 per cent rise in 2021-22.

India’s manufacturing sector showed resilience, with Gross Value Added (GVA) increasing by 26.6 per cent in 2021-22, driven by strong growth in key industries like basic metals, pharmaceuticals, and motor vehicles. The top five states employing the highest number of persons in this sector were Tamil Nadu, Gujarat, Maharashtra, Uttar Pradesh and Haryana in ASI 2020-21 as well as in ASI 2021-22.

ASI noted that despite various challenges, the manufacturing sector showed a strong recovery, with significant gains in invested capital, output, and profits.

PLIs in India

The PLI scheme in India was first launched in 2020 and, as of 2025, includes 14 sectors within it. According to the central government estimates, as of August 2024, the cumulative investments in the target sectors have reached INR 1.46 trillion (US$16.06 billion). It is estimated that investments will surpass INR 2 trillion (US$23 billion) in the coming year.

S. no.	Sectors	Budget outlay (in INR billions)	Tenure
1	Mobile Manufacturing and Specified Electronic Components	INR 409.95 (US$4.8 billion)	5 years
2	Critical Key Starting Materials/Drug Intermediaries & Active Pharmaceutical Ingredients	INR 69.50 (US$827 million)	10 years
3	Manufacturing of Medical Devices	INR 34.20 (US$407 million)	8 years
4	Automobiles and Auto Components	INR 570.42 (US$6.7 billion)	5 years
5	Pharmaceuticals Drugs	INR 150 (US$1.78 billion)	5 years
6	Specialty Steel	INR 63.22 (US$753 million)	5 years
7	Telecom & Networking Products	INR 121.95 (US$1.4 billion)	5 years
8	Electronic/Technology Products	INR 50 (US$595 million)	4 years
9	White Goods (ACs and LEDs)	INR 62.38 (US$743 million)	5 years
10	Food Products	INR 109 (US$1.2 billion)	6 years
11	Textile Products: MMF segment and technical textiles	INR 106.83 (US$1.2 billion)	5 years
12	High-efficiency solar PV modules	INR 45 (US$536 million)	5 years
13	Advanced Chemistry Cell (ACC) Battery	INR 181 (US$2.1 billion)	5 years
14	Drones and Drone Components	INR 1.2 (US$14.2 million)	3 years

Central government policies on manufacturing

Union ministry	National policies
Ministry of Textile	National Textile Policy 2000
Ministry of heavy industries and public enterprise	National Manufacturing Policy 2011 National Auto Policy 2018
Ministry of Steel	National Steel Policy 2017 Steel Scrap Recycling Policy 2019 Development of Steel Clusters 2019 (draft policy) Policy for providing preference to Domestically Manufactured Iron & Steel Product (DMI&SP) in govt. procurement 2017
Ministry of Food Processing Industries	Draft National Food Processing Policy 2019
Ministry of Housing and Urban Affairs	National Urban Transport Policy 2009
Ministry of Electronics and Information Technology	National Policy on Electronics 2019 Data centre policy 2020
Ministry of Commerce and Industry	Consolidated FDI Policy
Ministry of Petroleum and Natural Gas	Auto fuel vision and policy 2025

Manufacturing schemes in India

Union ministry	Manufacturing schemes
Ministry of Textile	PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks scheme 2022 Comprehensive Handicrafts Cluster Development Scheme (CHCDS) 2021 Silk Samagra-2 – An Integrated Scheme for Development of Silk Industry (ISDSI) 2022
Ministry of Heavy Industries and Public Enterprise	PLI 2021
Ministry of Steel	National Hydrogen Mission, R&D in Steel sector 2023 Research and Development Scheme 2021 PLI scheme for specialty steel in India, 2021
Ministry of Food Processing Industries	Creation of Infrastructure for Agro-Processing Clusters Operation Greens: Short-Term Interventions 2019 Scheme for Creation/Expansion of Food Processing & preservation Capacities Integrated Cold Chain and Value Addition Infrastructure 2008 Operation Greens- Long Term Interventions 2019 PLI Scheme for Food Processing Industry 2021 Creation/Expansion of Food Processing and Preservation Capacities (Cefppc) 2008 Setting Up/Upgradation of Quality Control/Food Testing Laboratories 2022
National Horticulture Board	Capital Investment Subsidy Scheme for Construction/Expansion/Modernisation of Cold Storage and Storages for Horticulture Produce 2021
Ministry of Electronics and Information Technology	Promoting Make in India: The MII Order’s Impact on Government Procurements PLI Scheme – PLI 2.0 for IT Hardware 2023 PLI for Large-Scale Electronics Manufacturing 2020 Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors 2020 Electronics Hardware technology park scheme 2023 Modified Scheme for setting up of Semiconductor Fabs in India, 2023 Modified Scheme for setting up of Display Fabs in India, 2023 Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme 2020 Design Linked Incentive (DLI) Scheme 2021
Ministry of Commerce and Industry	Lakshadweep And Andaman & Nicobar Islands Industrial Development Scheme, 2021 PLI Scheme for White Goods 2021 Central Sector Scheme for Industrial Development of Jammu and Kashmir 2021
Department of Animal Husbandry, Diary and Fisheries	Central Sector Scheme of Financing Facility Under Agriculture Infrastructure Fund, 2020 Animal Husbandry Infrastructure Development Fund, 2020 Dairy Processing and Infrastructure Development Fund (DIDF), 2017 Supporting State Dairy Cooperatives and Farmer Producer Organisations (SDC & FPO) Engaged in Dairy Activities, 2022
Bureau of Energy Efficiency (BEE)	Perform, Achieve and Trade (PAT) 2021
Ministry of Agriculture and Farmers Affairs	Pradhan Mantri Matsya Sampada Yojana 2020 National Beekeeping and Honey Mission 2020

Source: NITI Aayog

State-level policies for manufacturing

State	Manufacturing-specific policies
Andhra Pradesh	Andhra Pradesh Textile, Apparel and Garment Policy 2018-23 Andhra Pradesh State Food Processing Policy 2020 Andhra Pradesh Textile and Apparel Policy 2015 Andhra Pradesh Electric Mobility Policy 2018 Andhra Pradesh Automobile & Auto Components Policy 2015 Andhra Pradesh Industrial Policy 2023 The Andhra Pradesh Electronics Policy 2021
Arunachal Pradesh	Arunachal Industrial Policy 2020
Assam	Assam Information Technology and Electronics Policy 2017 Industrial and Investment Policy of Assam 2019 Assam Industrial Policy 2023 Assam Industrial Land Management Policy 2021 Electric Vehicle Policy of Assam 2021
Bihar	Bihar Electric Vehicle Policy 2019 Bihar Agri Investment Promotion Policy 2020 Bihar Electronics Development and Manufacturing (ESDM) Policy 2017 Bihar Industrial Investment Policy 2016 Bihar Industrial Investment Promotion Policy (Textile & Leather Policy) 2022
Chhattisgarh	Chhattisgarh Automotive Industries Policy 2012 Chhattisgarh State Electric Vehicle Policy 2022 The Electronics, IT, and ITES Investment Policy of Chhattisgarh 2015 Chhattisgarh Industrial Policy 2019 Chhattisgarh Industrial development policy 2020
Goa	Goa Industrial Policy 2022 Goa Electric Mobility Promotion Policy-2021
Gujarat	Gujarat Electronics Policy 2022-28 Gujarat Garment and Apparel Policy 2017 Gujarat State Electric Vehicle Policy 2021 Gujarat Industry Policy 2020 Gujarat Semiconductor Policy 2022
Haryana	IT & ESDM Policy of Haryana 2017 Haryana Electric Vehicle Policy 2022 Haryana Aatma Nirbhar Textile Policy 2022 Haryana Enterprises and Employment Policy 2020 Haryana Agribusiness & Food Processing Policy 2018
Himachal Pradesh	Himachal Pradesh IT, ITeS and ESDM policy, 2019 The Himachal Pradesh Industrial Investment Policy 2019 Himachal Pradesh Electric Vehicle Policy 2022
Jharkhand	Jharkhand Automobile Policy, 2016 Jharkhand Ethanol Production Promotion Policy, 2022 Jharkhand Industrial Promotion Policy, 2021 Jharkhand Electric Vehicle Policy, 2022 Electronics Development and Manufacturing (EDSM) Policy of Jharkhand, 2016 Jharkhand Industrial Park and Logistic Policy, 2022 Jharkhand Industrial and Investment Policy, 2021 Jharkhand Textile, Apparel and Footwear Policy, 2016
Karnataka	Electronics System Design and Manufacturing Policy 2017-2022 Karnataka Startup Policy, 2022 Karnataka New Textile and Garment Policy, 2019 Karnataka Mineral Policy, 2008 Karnataka Electric Vehicle and Energy Storage Policy, 2017 Compendium Of MSME Policies & Incentive Schemes of Karnataka State, 2022 Karnataka Industrial Policy 2020 Karnataka Aerospace Policy 2013
Kerala	Kerala Electric Vehicle Policy 2019 Kerala Industrial & Commercial Policy 2019
Madhya Pradesh	The Madhya Pradesh IT, ITeS & ESDM Investment Promotion Policy and Scheme 2016 Madhya Pradesh Electric Vehicle (EV) Policy 2019 Madhya Pradesh Industrial Policy 2014 Madhya Pradesh Technical Education and Skill Development Policy 2012
Maharashtra	Bharat Ratna Dr. Baba Saheb Ambedkar Special Package of Scheme Incentive for SC/ST Entrepreneurs, 2016 Policy for Industrial Parks comprising of flatted galas for ready-made garment manufacturing, gems and jewelry, microelectronics, and engineering units, 2018 Aerospace & Defence Manufacturing Policy, 2018 Maharashtra State Textile Policy, 2018 Maharashtra Electronics Policy 2016 Incentive for Development of Integrated Industrial Area, 2018 Logistics Parks Policy, 2018 Maharashtra COIR Policy, 2018 Maharashtra Electric Vehicle Policy, 2021 Maharashtra Industrial Policy, 2019 Maharashtra State Food Processing Policy, 2017
Manipur	Manipur Textile Policy 2020 Manipur Industrial Policy 2017 Manipur Electric Mobility Policy 2022
Meghalaya	Meghalaya Electric Vehicle Policy 2021 Meghalaya Industrial Policy 2017
Mizoram	Mizoram Industrial Policy 2021
Nagaland	Nagaland Industrial Policy 2000
Odisha	Policy for Setting up Registered Vehicle Scrapping Facility (RVSF) in Odisha 2022 Odisha Electric Vehicle Policy 2021 The Odisha Food Processing Policy 2016 Odisha Industrial Policy 2022 Odisha MSME Policy 2022 Odisha Apparel and Technical Textiles Policy 2022 Odisha Electronics Policy 2021 Long Term Linkage (LTL) Policy 2019 Odisha Logistics Policy 2022
Punjab	Punjab ESDM policy Punjab Electric Vehicle Policy 2022 Punjab Industrial and Business Development Policy 2022
Rajasthan	Rajasthan Electric Vehicle Policy (REVP), 2022 Rajasthan Agro Processing and Agri Marketing Promotion Policy, 2015 Special Customised Package for Textile Sector Enterprises, 2013 Rajasthan Industrial Policy, 2019
Sikkim	Nil
Tamil Nadu	Tamil Nadu Electronics Hardware Manufacturing policy 2020 Tamil Nadu Startup & Innovation Policy 2018 Tamil Nadu New Integrated Textile Policy 2019 Tamil Nadu R&D Policy 2022 Tamil Nadu Electric Vehicle Policy 2023 Tamil Nadu Food Processing Policy 2018 Tamil Nadu Logistics Policy 2023 Tamil Nadu Automobile and Auto Components Policy 2014 Tamil Nadu Aerospace and Defence Industrial Policy 2022 Tamil Nadu Industrial development policy 2021 Tamil Nadu Industrial Policy 2021
Telangana	Telangana Electric Vehicle and Energy Storage Policy, 2020 Telangana State Food Processing and Preservation Policy, 2017 Electronics Policy of Telangana, 2016 Industrial Policy Framework for The State of Telangana, 2014 Telangana Textile & Apparel Policy, 2017
Tripura	Nil
Uttarakhand	The Uttarakhand Logistics Policy 2023 Mega Industrial and Investment Policy 2021 Uttarakhand Policies & Incentives 2018 Uttarakhand Export Policy 2021 Uttarakhand Mega Textile Park Policy 2014
Uttar Pradesh	Uttar Pradesh Warehousing and Logistics Policy, 2022 Uttar Pradesh Electric Vehicle Manufacturing and Mobility Policy, 2022 DRAFT FOR UTTAR PRADESH INDUSTRIAL INVESTMENT AND EMPLOYMENT PROMOTION POLICY 2022 The Uttar Pradesh Electronics Manufacturing Policy, 2022 (Amendment) UP Electronics Manufacturing Policy, 2020 Uttar Pradesh Startup Policy, 2020 Uttar Pradesh Textile and Garmenting Policy, 2022 UP Defence and Aerospace (Amendment) policy, 2022 Uttar Pradesh Electronics Manufacturing Policy, 2020 UP Export Promotion Policy, 2020
West Bengal	West Bengal Electric Vehicle Policy 2021 Industrial and Investment Policy of West Bengal, 2013 West Bengal Textile Policy 2013-2018 Logistics Park Development and Promotion Policy of West Bengal, 2018 West Bengal Export Promotion Policy, 2018
Andaman and Nicobar Islands	Andaman And Nicobar Islands Electric Vehicle Policy, 2022
Chandigarh	Chandigarh Electric Vehicle Policy, 2022 Information Technology & Electronics Policy, Chandigarh 2013
Dadra and Nagar Haveli and Daman & Diu	Dadra Nagar Haveli Information Technology Policy 2019-2024 Dadra & Nagar Haveli Industrial Policy 2018
The Government of NCT of Delhi	Delhi Electric Vehicle Policy 2020 Delhi Industrial Policy 2010
Jammu & Kashmir	J&K IT policy 2020 Jammu & Kashmir Industrial Policy 2021
Ladakh	Ladakh Electric Vehicle and Allied Infrastructure Policy 2022 The Ladakh Sustainable Industrial Policy 2022
Lakshadweep	Nil
Puducherry	Puducherry Industrial Policy 2016

Source: NITI Aayog

Foreign direct investment in India’s manufacturing sector

India’s FDI policy, which allows up to 100 per cent foreign investment in most sectors under the automatic route, has made the country an attractive global investment hub. As a result, the overall FDI inflows have risen steadily – from US$36.05 billion in FY 2013-14 to a provisional US$81.04 billion in FY 2024-25, marking a 14 per cent increase over the previous year.

Expansion of manufacturing FDI

A key driver of this growth is the sharp increase in investments flowing into the manufacturing sector. In FY 2024–25, manufacturing FDI rose 18 per cent year-on-year, reaching US$19.04 billion compared to US$16.12 billion in FY 2023–24. Between April 2014 and March 2025, the manufacturing sector alone attracted US$184.15 billion in FDI equity inflows.

Sectoral opportunities

While services remain the top FDI recipient, manufacturing is steadily expanding its share. Investments are concentrated in high-growth industries such as electronics, automotive, chemicals, and consumer goods. Policy reforms – such as permitting 100 per cent FDI in contract manufacturing and coal mining, along with the proposed increase in insurance sector FDI limits to 100 per cent for companies reinvesting premiums domestically – have further strengthened India’s appeal as a global manufacturing hub.

This surge in FDI signals India’s shift from being largely a services-driven FDI destination to a balanced hub for both services and high-value manufacturing investments.

The “Make in India” initiative, launched on 25 September 2014, has played a pivotal role in boosting FDI equity inflow in the manufacturing sector. To further enhance India’s manufacturing capabilities and economic growth, the government introduced a series of policy measures, including the pivot to an Atmanirbhar Bharat (Self-Reliant India), PLI schemes, and investment opportunities under the National Infrastructure Pipeline (NIP) and National Monetisation Pipeline (NMP). Other initiatives include the following:

1. India Industrial Land Bank (IILB)
2. Industrial Park Rating System (IPRS)
3. National Single Window System (NSWS).

An institutional mechanism, Project Development Cells (PDCs), has also been established in all concerned ministries and departments to fast-track investments.

India has taken additional steps to attract domestic and foreign investments, such as introducing the Goods and Services Tax (GST), reducing corporate tax rates, improving the ease of doing business, reforming FDI policies, reducing compliance burdens, and boosting domestic manufacturing through public procurement orders, the Phased Manufacturing Programme (PMP), and Quality Control Orders (QCOs).