Manufacturing Share in India’s GVA: Stagnation Facts
Why in the news
Manufacturing’s contribution to gross value added (GVA) has barely moved, hovering near 14% in 2023-24, and has slipped since 2010.
Key facts
- Highest share: about 18% in the early 2000s, followed by a fall after 2010.
- Employment share: 10.4% (1980-81) to 10.6% (2022-23), while services grew fast.
- Exports: the manufactured exports ratio dropped from 18% (2012-13) to under 7% (2022-23).
| Comparison | Manufacturing share of GDP |
|---|---|
| India | Lower than Bangladesh, Sri Lanka and Pakistan |
| Southeast Asia | 23% |
| China | 26% |
Concerns
- Heavy reliance on imported inputs, including critical pharmaceuticals, hurts self-reliance.
- Growth leans on government schemes such as production linked incentive (PLI) rather than innovation and process improvement.
Exam angle
- Manufacturing share in GVA, 2023-24: about 14%.
- Related scheme: PLI.