India’s manufacturing sector continued its upward trajectory, recording a 5.2% year-on-year growth in the latest industrial performance data released today. The rise was primarily driven by robust gains in automotive components, specialty chemicals, and heavy machinery, indicating a strengthening industrial recovery and rising global competitiveness.
Industry analysts attribute this momentum to increasing export orders, domestic demand revival, and capacity expansion across key sectors. Automotive component manufacturers, in particular, have benefited from higher OEM orders and export demand linked to electric vehicle platforms.
The chemicals segment—which remains one of India’s strongest export categories—saw consistent growth due to rising global demand and improved supply chain stability.
A notable highlight is the surge in engineering goods exports, which have climbed sharply over the past quarter. Exporters report increased orders from Europe, Southeast Asia, and the Middle East, supported by India’s competitive pricing and improved manufacturing capabilities.
With Q4 approaching, economists believe that the sector is well-positioned to deliver another strong quarter, keeping India’s manufacturing growth above global averages despite moderate global economic pressures.