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India’s manufacturing boom is happening in sectors that create few jobs while apparel and textiles keep slipping
Economy
Published on 15 May 2026
Capital goods and infrastructure are soaring, but apparel shrank
Latest IIP data for FY26 shows India’s manufacturing is growing but not where jobs are. General IIP rose about 4.1% in FY26, yet manufacturing has averaged only ~3.3% annually since FY15. Capital-intensive, domestic-demand sectors like capital goods, metals, and infrastructure are performing strongly and building linkages. Meanwhile labour-intensive, export-oriented industries are contracting or barely growing: wearing apparel fell 5.3% in 2025-26, textiles grew just 1.2%, and other manufacturing collapsed. Analysts argue exports need a tailored push.
- General IIP grew 4.1% in FY26, barely above 4.0% in FY25
- From FY15 to FY26, general IIP averaged ~3.5% and manufacturing ~3.3%
- Capital-intensive sectors drove strength, including capital goods and infrastructure
- Wearing apparel contracted 5.3% in 2025-26; leather fell 4.1%
- Textiles grew only 1.2% in 2025-26; other manufacturing dropped 14.9%
- China’s export-heavy model contrasts with India’s slower manufacturing expansion
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times