Prime Minister Narendra Modi has emphasized the emerging significance of India in the global manufacturing industry due to its increased capacity in industry, semiconductors and strengthening of the supply chain.
Speaking at the launch of SEMICON India 2026 in New Delhi on September 17, the Prime Minister has stated that there is a growing need for manufacturing locations which can be trusted and India is increasingly getting ready for that task. The growing trust in India along with its economic growth has also been highlighted by the Prime Minister.
The industry of semiconductors has emerged as an important component of the manufacturing sector in India. According to the Press Information Bureau of Prime Minister’s Office, the ecosystem of semiconductors in India is growing with opportunities for investment and innovation.
Even the larger manufacturing sector in India has witnessed growth in various areas. In a recent government backgrounder, it was stated that the contribution of manufacturing to GDP is 16-17%, and the sector employs over 27 million people. The Compound Annual Growth Rate of Manufacturing GVA between 2022-23 and 2025-26 is 10.88%, as per the revised series provided by the government.
There has also been some progress in the area of electronics manufacturing. As per the information provided by the Ministry of Electronics & Information Technology, the domestic value addition in electronics manufacturing sector is at 18-20%, while the PLI scheme for large-scale electronics manufacturing has helped in increasing production, exports and employment.
The other area that the government has been focussing on in order to build an integrated manufacturing ecosystem is that of industrial infrastructure and logistics improvement. There have been efforts in this direction through various schemes like PM Gatishakti, National Logistics Policy, PLI Schemes, Manufacturing Clusters and others.
This manufacturing agenda of India is also part of the broader discourse surrounding resilient global supply chains. In the BRICS New Delhi Declaration of September 2026, there was an appeal to develop “more resilient, reliable and stable supply chains,” as well as a greater engagement of developing countries in high-value manufacturing processes.
By investing in such industries as semiconductors, electronics, and advanced manufacturing sectors, India is trying to consolidate its position in global production networks. The recent speech by the Prime Minister at SEMICON India 2026 highlights this policy direction, in which the government aims to become a reliable player in manufacturing.
