India Has 5.7 PC Share in Asia’s Industrial Exports: ADB
Manufacturing seen growing from 13% to 20% of GDP by FY30, boosting exports
Chennai: India has just 5.7 per cent share in the industrial exports originating from Asia. However, this share may rise with the focus on manufacturing as its contribution to India’s GDP will rise from 13 per cent of GDP in FY25 to 20 per cent in FY30.
Of Asia’s industrial exports, 44.6 per cent originated from China, 5.7 per cent from India, 35.5 per cent from developed countries in Asia, and 14.2 per cent from developing countries in Asia. About 22.5 per cent of Asia’s industrial exports was consumed in North America, 18.7 per cent in Europe, and 41.9 per cent within Asia itself, finds Asian Development Bank.
Industrial exports are expected to improve with the emphasis given to manufacturing in recent times. Equirus Capital estimates that manufacturing’s contribution to India’s GDP will rise from 13 per cent of GDP in FY25 to 20 per cent in FY30.
India’s manufacturing sector has only recently regained stability after the pandemic-led disruptions that had severely impacted production, supply chains, and investment flows.
However, this recovery is unfolding against a more challenging global backdrop. Rising US tariffs, protectionist trade policies, and shifting global supply dynamics have introduced fresh headwinds, threatening to erode export competitiveness and weigh on new investment decisions. These external pressures, coupled with rising input costs, could slow the pace of expansion in the near term.
Nevertheless, the foundation for long-term growth has been firmly laid. Reforms such as the Production Linked Incentive (PLI) scheme, Gati Shakti, and continued infrastructure investments are driving capacity creation and strengthening India’s position in global value chains. While challenges persist, the sector is structurally better placed to build resilience, attract sustained capital, and gradually expand its share in GDP through the decade.
FY25 witnessed the sharpest surge in Industrial IPOs, supported by strong earnings visibility. Industrial IPOs may enter a peak phase, with annual listings projected to reach 100 by FY30. QIP activity in the industrial space has seen a strong revival in FY26YTD.
Aerospace, defence, electric vehicles and batteries, renewables and AI are seen to be attracting investments.
