India’s manufacturing landscape is changing in a significant way, according to the Economic Survey of 2026. As of January 28, it’s clear that the country is moving toward more advanced production methods. Medium and high-tech activities now represent 46.3% of India’s manufacturing value, putting it among a select group of middle-income nations enhancing their production capabilities.
This shift isn’t just happenstance. The survey credits government initiatives like Production Linked Incentive (PLI) schemes and the India Semiconductor Mission for this transformation. These efforts, along with improvements in sectors like electronics, pharmaceuticals, and transportation, are steering Indian manufacturing away from low-value assembly towards more advanced technology and higher productivity.
The effects are evident in India’s growing exports. Data from UNIDO highlights a consistent increase in global exports of medium and high-tech manufactured goods, rising above USD 15 billion recently. This growth indicates not just better exports, but also that Indian products are becoming more competitive in global markets, requiring greater precision and quality.
India’s standing in global rankings has improved as well. It moved up to the 37th position in the Competitive Industrial Performance index in 2023, up from 40th in the previous year. This improvement showcases advancements in industrial capabilities and better export diversity.
The Economic Survey emphasizes a key insight: targeted industrial policy works best. Rather than broad protections or random incentives, India’s recent successes stemmed from specific strategies, careful integration into global supply chains, and a strong focus on quality and scalability.
As the world economy shifts towards fragmentation and more technology-driven industries, India’s move up the manufacturing ladder could be one of its most significant economic changes in recent years.
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Experts underscore the importance of production quality in manufacturing. “Quality is not just a metric; it’s a necessity for global competition,” says Dr. Ramesh Patel, an economist specializing in industrial growth. According to a recent survey by the National Association of Manufacturers, 70% of U.S. manufacturers believe that high-quality products are vital for maintaining a competitive edge.
India’s rise isn’t merely a local trend. On social media, there’s a growing buzz about Indian made products, especially in tech and pharmaceuticals, reflecting a shift in consumer perception. Hashtags like #MakeInIndia are trending, demonstrating a new pride in local manufacturing.
In summary, India’s manufacturing evolution shows promise. By embracing advanced technology and focusing on quality, the country is making its mark on the global stage. This trend of growth, driven by targeted policies and innovations, sets the foundation for a robust economic future.
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