India's share of global manufacturing is a tenth of China's but that pie is getting larger every year, according to the Economic Survey 2024-25.
India has 2.8% share in global manufacturing, compared to China's 28.8%, the survey said. That gives substantial scope to improve the contribution of the industrial sector in gross domestic product in relation to its comparator countries.
“Not since World War II has one country dominated the manufacturing landscape in such a way,” India's Chief Economic Advisor V Anantha Nageswaran said during a media scrum following the tabling of the Economic Survey 2024-25 in the Parliament. “China is now the world's sole manufacturing superpower… China's share in critical technology will be higher than the combined next 10 countries.”
That said, there are positive cues for India's manufacturing prowess.
India's industrial growth in fiscal 2025 is expected to be higher than the previous five-year average, the survey stated. The sector is estimated to grow by 6.2% in the fiscal, driven by robust growth in electricity and construction, but declined to 3.6% in the September quarter due to three factors: sharp decline in manufacturing exports, unprecedented and erratic monsoon, and variation in the dates of the festive season period.
“India's goal should now be to fire all domestic drivers of growth,” Nageswaran said. “Deregulation exercise at the local and state government levels for industries, education and employment needs to happen.”
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