Merchandise exports grew 2.52% to US$184.13 billion in April–August 2025 from US$179.60 billion a year earlier.

Manufacturing Performance

• Strong Growth Momentum: The Index of Industrial Production (IIP) surged to 3.5% Year-on-Year (YoY) in July 2025, primarily led by 5.4% YoY manufacturing growth.
• Operating Conditions Improve: The HSBC India Manufacturing Purchasing Managers’ Index (PMI) reached 59.3 in August 2025, the fastest growth in over 17 years.
• Investment Confidence: Manufacturing Foreign Direct Investment (FDI) accelerated 18% in FY 2024-25.

Engines of Growth for Manufacturing

• Electronics Dominance: India is the world’s second-largest mobile manufacturer. Production has seen a sixfold rise and exports an eightfold surge over the past 11 years.
  • Dependence on imported mobile phones has dropped from 75% in 2014-15 to 0.02% in 2024-25.
• Pharmaceuticals ("Pharmacy of the World"): The industry ranks 3rd globally by volume and supplies over 50% of global vaccine demand.
• Automotive Sector: Contributes 7.1% to India’s GDP and is the fourth-largest automobile producer globally.
• Textiles: It is the second-largest employer after agriculture, contributing around 2.3% to GDP. Nearly 80% of its capacity lies in MSME clusters, ensuring inclusive growth.