Compounded annual growth rate of Manufacturing GVA at constant prices (2022-23 base) as per revised series during 2022-23 to 2025-26 is 10.88%

Executive Summary The Ministry of Statistics and Programme Implementation (MoSPI) has updated the National Accounts Statistics base year from 2011–12 to 2022–23, reporting a 10.88% CAGR for manufacturing Gross Value Added (GVA) through 2025-26. This document, released on August 12, 2026, outlines the sector's steady contribution to India's GVA and details various structural reforms implemented to enhance industrial resilience. No specific upcoming deadlines are mentioned, though the data reflects performance through the 2025-26 provisional estimates.

Key Points / Main Content

Revised National Accounts Series

• MoSPI released a revised series of National Accounts Statistics in February 2026.
• The base year has been shifted from 2011–12 to 2022–23 to better reflect current economic conditions.

Manufacturing Sector Performance (2022-23 to 2025-26)

• Compounded Growth: The sector achieved a CAGR of 10.88% at constant prices (2022-23 base).
• Annual Growth Rates: Manufacturing growth was recorded at 12.7% in 2023-24, 9.3% in 2024-25 (First Revised Estimates), and 10.7% in 2025-26 (Provisional Estimates).
• GVA Share: The sector’s share of total GVA remained stable, fluctuating slightly between 14.5% and 14.8%.

Structural Reforms and Initiatives

• Incentive Schemes: Implementation of Production Linked Incentive (PLI) Schemes and the Bharat Audyogik Vikas Yojana (BHAVYA).
• Logistics and Infrastructure: Utilization of the PM GatiShakti National Master Plan, National Logistics Policy, and the National Industrial Corridor Development Programme (NICDP).
• Targeted Growth Areas: Specific initiatives are in place for semiconductors, electronics, critical minerals, MSMEs, and Surface Coal/Lignite Gasification Projects.
• Business Environment: Focus on improving the ease of doing business to reduce vulnerability to external shocks.

Strategic Objectives

• Strengthen domestic manufacturing and diversify supply chains.
• Reduce import dependence in strategic sectors.
• Enhance energy security and the overall competitiveness of the manufacturing ecosystem.

Impact Analysis

Government of India (MoSPI and Planning Ministries) Impact The transition to the 2022-23 base year provides a more accurate and updated framework for measuring economic output and the success of industrial policies. Action Required Maintain the publication of revised estimates and continue monitoring the progress of structural reforms like the National Logistics Policy and PLI schemes.

Manufacturing Industry (including MSMEs) Impact Industries benefit from a wide array of support schemes (PLI, BHAVYA) and improved infrastructure through GatiShakti and National Industrial Corridors. Action Required Enterprises should align their operations with government initiatives to enhance competitiveness, reduce import reliance, and leverage incentives for semiconductor and electronics production.

Strategic and Energy Sectors Impact Sectors involved in critical minerals and coal/lignite gasification are prioritized to enhance national energy security and reduce external vulnerabilities. Action Required Stakeholders in these sectors must engage with specific promotion schemes to improve supply chain resilience and strategic autonomy.