Published: 30 January 2026PIB / IBEFEconomy
Economic Survey: Manufacturing GVA Surges to 9.13% in Q2 FY26; PLI Drives ₹2 Lakh Crore Investment
The Economic Survey 2025-26 highlights manufacturing as a key growth engine, with GVA growth accelerating from 7.72% in Q1 FY26 to 9.13% in Q2 FY26, signaling a structural recovery. This represents a remarkable turnaround from just 2.2% growth in Q2 FY25. The industrial sector overall grew by 7% in real terms in H1 FY26, up from 6% in the corresponding period of the previous year.
Government-led initiatives, particularly the Production Linked Incentive (PLI) schemes across 14 sectors, have played a catalytic role. As of September 2025, PLI schemes attracted over ₹2.0 lakh crore of actual investment, generated incremental production/sales exceeding ₹18.7 lakh crore, and created over 12.6 lakh jobs.
Advanced technology is gaining ground: medium and high-tech sectors now account for 46% of manufacturing value-added. However, India's R&D spending remains at 0.64% of GDP, with the business sector contributing only 41% (compared to 77% in China). The Survey recommends strengthening private R&D investment.
The India Semiconductor Mission has approved 10 manufacturing and packaging projects across 6 states with investment of approximately ₹1.60 lakh crore. Additionally, 57 lakh jobs were added in organized manufacturing between 2015-16 and 2024-25 at an annualized growth rate of 4%.
0Mains angle
Q: Analyse how the Economic Survey 2025-26 manufacturing data — Q2 FY26 GVA at 9.13%, PLI scheme gains and Semiconductor Mission approvals — reflects India's structural industrial recovery and self-reliance push.
Answer (50 words):
Economic Survey 2025-26 shows manufacturing GVA accelerating from 7.72% in Q1 FY26 to 9.13% in Q2 FY26, versus 2.2% in Q2 FY25. PLI across 14 sectors drew ₹2 lakh crore investment, ₹18.7 lakh crore sales, 12.6 lakh jobs; Semiconductor Mission approved 10 projects worth ₹1.60 lakh crore.
6-axis classification
CoverageNationalSubjectEconomicExamBasic Computer Instructor · CET Graduation · CET Senior Secondary · EO/RO · LDC · Mahila Supervisor · Patwar · PTI · RAS · REET · RPSC SI · School Lecturer · Senior Computer Instructor · Senior Teacher · UPSC · Vanpal · BothSourcePIB / IBEF
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Linked questionMedium
What was the manufacturing GVA growth rate in Q2 FY26, according to the Economic Survey 2025-26?
Explanation · Correct answer DManufacturing GVA growth accelerated to 9.13% in Q2 FY26, up from 7.72% in Q1 FY26. This was a remarkable turnaround from just 2.2% in Q2 FY25. Option B (7.72%) is the Q1 FY26 figure, not Q2.
