Economic Survey 2025-26

NITI Aayog has released the first volume of a study titled “Key Sectors to Position India as a Global Manufacturing Hub”, outlining priority manufacturing sectors and recommendations. The Economic Survey 2025-26 presents the latest national accounts-based snapshot of manufacturing and the broader secondary sector in India’s GVA, output, and employment.

Manufacturing Sector: Economic Survey 2025-26 and NITI Aayog Study :

Dimension	Key Details
Report focus	The study provides for a structured, data-driven framework to identify manufacturing sectors for India’s global leadership by 2047.
Shortlisted sectors (12)	The study comprises 12 shortlisted sectors: 1. electronics, 2. telecommunications equipment, 3. solar photovoltaic, 4. pharmaceuticals, 5. chemicals, 6. automotive, 7. defence and drones, 8. steel, 9. capital goods, 10. textiles, 11. food processing, and 12. leather and footwear.
Opening volume coverage	The opening volume comprises in-depth examination of 4 sectors: 1. chemicals, 2. textiles, 3. telecom and network equipment, and 4. solar photovoltaic.
Methodology	The study comprises four phases: shortlisting sectors based on market size and growth prospects; three-pronged assessment of market potential, competitiveness, and strategic relevance; benchmarking best practices from top-performing manufacturing countries; developing sector-specific recommendations and a roadmap.
Assessment factors	The assessment comprises consideration of market potential, infrastructure readiness, policy support, raw material availability, technology readiness, employment potential, and India’s current position in the value chain.
Cross-cutting recommendations	The report provides for recommendations across examined sectors: cluster-based manufacturing with integrated industrial parks offering shared utilities, infrastructure, and efficient approvals; targeted incentives and viability gap funding to reduce import dependency; deeper domestic value addition; joint ventures and technology transfer; skilling and technology adoption to raise labour productivity; export-market diversification while negotiating balanced free trade agreements.
Chemicals sector structure	The domestic chemicals industry comprises three consumption segments: petrochemicals and organic chemicals, specialty chemicals, and inorganic chemicals.
Chemicals: priority products	The report identifies phenol, methanol, and acetic acid as priority products for import substitution.
Textiles: key quantitative indicators	The textile and apparel sector comprises the following indicators in the report: approximately 2% contribution to national GDP; 11% of manufacturing GVA; 9% of merchandise exports; support to more than 45 million people; USD 37.7 billion textile exports in fiscal 2025; 4.1% of global textile and apparel exports, with India as the sixth-largest exporter.
Textiles: labour productivity and workforce measures	The report provides for skilling through apprenticeships and industry-academia partnerships, safe and affordable accommodation for migrant workers near clusters, and voluntary certification for firms demonstrating ethical labour practices.
Telecom market snapshot	India comprises the world’s second-largest telecommunications market with more than 1.2 billion subscribers, approximately 85% telecom penetration, and nearly 75% internet usage.
National Telecom Policy 2025 targets	The National Telecom Policy 2025 mandates targets by 2030: doubling the sector’s contribution to GDP; doubling exports of telecom products and services; creating one million new jobs; and significantly increasing investment and R&D expenditure.
Telecom: priorities	The report provides for priorities including deepening localisation, strengthening domestic component manufacturing, promoting joint ventures and technology transfer, developing integrated industrial clusters, and strengthening testing, certification, and skill development.
Solar capacity and target linkage	India has installed 106 GW of solar capacity by March 2025 and needs to add about 174 GW to meet the 2030 target of 280 GW.
Solar PV market size and growth	The domestic PV market comprises an estimate of ₹32,400 crore ($3.7 billion) and is expected to grow at a 17-20% CAGR between fiscal 2023 and fiscal 2030.
Solar exports concentration	The US comprises 97% of India’s solar module exports between 2019-20 and 2025-26, as per the report.
Solar: supply chain and export-base recommendations	The report provides for moving upstream into polysilicon and wafers and broadening the export base.
Manufacturing share in GVA	Manufacturing’s share in India’s GVA comprises around 17-18% in real terms, as per the Economic Survey 2025-26.
Manufacturing share in real GDP	Manufacturing’s share of real GDP comprises a relatively steady trend despite fluctuations in its nominal share, as per the Economic Survey 2025-26.
Manufacturing GVO	Manufacturing’s gross value of output (GVO) comprises around 38%, as per the Economic Survey 2025-26.
National accounts: secondary sector composition	The broader secondary sector comprises manufacturing, construction, electricity, gas, water supply, and related utilities.
National accounts: secondary sector share and growth	The secondary sector accounts for 25.8% of India’s GVA in 2024-25 and grows by 8.0% in real terms during the year.
Employment: manufacturing share	MoSPI’s Sustainable Development Goals indicator framework shows manufacturing comprises 11.44% of total employment in 2023-24, compared with 12.13% in 2017-18.