India’s manufacturing sector is gaining momentum with strong policy support and private investment, contributing around 16-17% of the country’s GDP and employing over 27 million people. Manufacturing gross value added (GVA) grew at a compound annual growth rate (CAGR) of 10.88% between fiscal years 2023 and 2026. In July 2026, merchandise exports reached $44.24 billion, while manufacturing output increased by 7.8% in June 2026, according to inc42.com.
The electronics and advanced manufacturing segments are driving much of this growth. Electronics production rose 15.8% year-on-year to ₹13.11 lakh crore in fiscal 2026. The government has approved 12 semiconductor manufacturing projects with investments exceeding ₹1.64 lakh crore. Additionally, the Ministry of Electronics and Information Technology (MeitY) approved 31 new projects worth ₹7,877 crore under the Electronics Component Manufacturing Scheme, raising the projected production value under the scheme to ₹82,243 crore.
Amid this backdrop, inc42.com highlighted five manufacturing startups that stood out in August 2026. These startups are innovating in areas such as powertrains, energy storage systems, and defense technologies. The list is a curated selection by the Inc42 editorial team, reflecting the growing capabilities and investment in India’s manufacturing ecosystem, which is increasingly focused on self-reliance and advanced manufacturing.
The momentum in India’s manufacturing sector is underscored by the government’s continued approvals and investments. The 31 additional projects approved under the Electronics Component Manufacturing Scheme in 2026 exemplify this trend, with a combined projected production value of ₹82,243 crore, signaling sustained growth and opportunity for startups in this space.