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.
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