China accounts for 28% of global manufacturing. Where does India rank?

China has further strengthened its position as the world's manufacturing powerhouse, accounting for around 28% of global manufacturing value added, according to World Bank data.That means more than one in every four manufactured goods produced globally now comes from China, underlining the country's dominance in sectors ranging from electronics and electric vehicles to industrial machinery.The latest figures also highlight how far India still has to go in its manufacturing ambitions. Despite being the world's fifth-largest economy and pushing initiatives such as Make in India and the Production-Linked Incentive (PLI) scheme, India accounts for about 3% of global manufacturing value added.CHINA'S LEAD HAS WIDENED OVER TWO DECADESChina's rise has been remarkable. In 2004, it accounted for less than 10% of global manufacturing. Over the past two decades, that share has more than tripled to around 28%, making China the largest manufacturing nation in the world by a significant margin.Its manufacturing value added has also grown from around $625 billion in 2004 to nearly $4.66 trillion, according to World Bank data. By comparison, the United States now accounts for around 17% of global manufacturing, down from about 22% in 2004. The Eurozone's share has fallen to around 15%, while Japan now contributes roughly 5% of global manufacturing value added.WHERE DOES INDIA STAND?India's share of global manufacturing stands at about 3%, placing it well behind China and other major manufacturing economies.However, the country has been making a strong push to expand its industrial base through initiatives such as Make in India, the PLI scheme and investments in sectors including electronics, semiconductors, defence manufacturing, renewable energy and electric vehicles.The government has also been trying to position India as an alternative manufacturing destination for global companies looking to diversify supply chains beyond China.WHY HAS CHINA PULLED SO FAR AHEAD?China's manufacturing growth has been driven by decades of large-scale industrialisation, massive investments in infrastructure, integrated supply chains and its ability to produce goods at scale.The country has steadily moved beyond low-cost manufacturing to become a global leader in higher-value industries such as electric vehicles, batteries, consumer electronics and industrial equipment.Today, China produces manufacturing output worth about $4.66 trillion, more than the combined manufacturing value added of the United States, Japan and Germany, according to the World Bank data cited in the report.WHY THIS MATTERS FOR INDIAManufacturing plays a crucial role in creating jobs, boosting exports and reducing dependence on imports. A stronger manufacturing base also helps countries become more competitive globally and strengthens supply chains.While India's 3% share remains modest compared with China's 28%, policymakers see manufacturing as a key pillar of the country's long-term economic growth strategy.With companies increasingly looking to diversify production beyond China, India is hoping to attract a larger share of global manufacturing in the coming years.- EndsPublished On: Jul 28, 2026 13:49 IST