Where India Stands Globally in Manufacturing and Trade

India’s economy is growing fast, but how does it compare with the rest of the world? In this guide you’ll see the real numbers, the hot sectors, and what the data means for businesses that want to work with India.

India’s Manufacturing Muscle

In 2025 India is the world’s third‑largest manufacturing hub by output, trailing only China and the United States. The country produces more than 1.2 billion tonnes of steel, cement, and chemicals every year. This scale gives Indian manufacturers a cost advantage, especially in textiles, pharmaceuticals, and auto parts.

Small‑scale producers still play a big role. More than 45 % of Indian factories are micro‑ or small‑batch units, which helps the country stay flexible and respond quickly to market changes. For a foreign buyer, this means you can find both high‑volume partners and niche makers under one roof.

Export Power and Trade Balance

When it comes to exports, India is in the top ten for several key products. It ranks #1 in textile and garment exports, #2 in generic pharmaceuticals, and #4 in automotive components. Overall, the country shipped goods worth about $450 billion in 2025, a 12 % rise over the previous year.

Even though exports are strong, the trade deficit remains a challenge. India imports large quantities of petroleum, high‑tech equipment, and certain plastics, which offsets some of the export gains. Understanding this balance helps companies decide whether to source locally or look for import alternatives.

For entrepreneurs, the takeaway is clear: India offers a huge production base and competitive pricing, but you need to plan for logistics, customs, and possible tariff changes. Government schemes like "Make in India" and new tax incentives are designed to reduce those hurdles, making it easier to set up joint ventures or contract manufacturing.

So, where does India really stand? It’s a top‑tier player in manufacturing volume, a rising star in high‑value exports, and a market with a growing middle class that fuels domestic demand. If you’re scouting a partner or a new market, India’s global ranking makes it a place worth a close look.

Keep an eye on sector‑specific data—pharma, chemicals, and electronics are expected to outpace the overall growth rate in the next two years. Aligning your product strategy with these trends can give you a competitive edge and open doors to a market that’s still on the rise.