Manufacturing industries in India are undergoing a major transformation in 2025, powered by policy reforms, technology adoption and global supply chain diversification. Contributing nearly 17% to India’s GDP, the manufacturing sector is poised to touch 25% by 2030, aligning with the government’s ambitious “Make in India” and “Atmanirbhar Bharat” missions.
In May 2025 alone, India witnessed a 2.6% rise in industrial output, led by high-growth areas such as electronics, EVs, pharmaceuticals and automation. One of the key enablers across these segments is embedded systems, which provide the intelligence and efficiency needed in modern production systems.
Let’s explore the 10 most promising sectors reshaping the future of manufacturing industries in India.
10 most promising sectors shaping the future of manufacturing industries in India 2025
1. Electronics & Semiconductors
The electronics manufacturing industry in India hit $115 billion in 2024, and is projected to triple by 2026. Central to this momentum is the ₹76,000 crore Semicon India Programme and rising domestic and export demand for consumer electronics. Embedded microcontrollers and SoCs (System-on-Chips) power everything from smartphones to wearables, forming the backbone of the sector’s innovation.
2. Electric Vehicles & Auto Components
With strong support from FAME-II and PLI Auto schemes, India’s EV sector is booming. EV component exports reached $23 billion in FY25. Embedded technologies such as Battery Management Systems (BMS), onboard telematics and power electronics are essential for performance, efficiency and compliance in EV manufacturing.
3. Pharmaceuticals & Biotechnology
India exported over $25 billion in pharmaceutical products in 2024, continuing its role as the “Pharmacy of the World.” Embedded sensors in drug delivery devices and IoT-integrated cold chain systems are enhancing production accuracy, traceability and regulatory adherence across pharma and biotech facilities.
4. Metals & Minerals
As India targets 300 million tonnes of steel production by 2030, smart automation in manufacturing is becoming indispensable. Embedded platforms help implement predictive maintenance, real-time quality control and safety automation, driving operational excellence in metals and minerals industries.
5. Embedded Systems & Industrial Automation
As a category of its own, embedded systems have become the technological core of all advanced manufacturing industries in India. With a market value of $4.47 billion in 2024, growing at 10.3% CAGR, this sector fuels robotics, PLCs, HMI devices and smart control platforms that automate and digitize manufacturing operations.
6. Drones & UAVs
Projected to reach $23 billion by 2030, India’s drone manufacturing sector is taking off across agriculture, surveillance and logistics. Drones rely on embedded processors, GPS modules and flight control systems, making embedded tech central to their functionality and reliability.
7. Data Centers & Digital Infrastructure
India’s data center industry touched $5 billion in 2024, with a 25% CAGR driven by the exponential growth in AI, IoT and cloud services. Embedded systems enable critical functions like energy management, thermal regulation and real-time monitoring, ensuring optimal uptime and efficiency in high-density server farms.
8. Specialty Chemicals
India is capitalizing on the China+1 strategy, positioning itself as a global supplier of specialty chemicals. Embedded control units in reactors and manufacturing plants ensure safe, scalable and precise chemical production. Automation in this niche manufacturing segment improves quality and minimizes risk.
9. Medical Devices
India’s medical device industry is on a steep growth curve, enabled by the Make in India policy and rising demand for affordable diagnostics. Devices like portable ECGs, glucose monitors and wearable trackers are driven by embedded firmware and real-time data processors that ensure high accuracy and connectivity.
10. Technical Textiles
With growing use in defense, sportswear and healthcare, India’s technical textiles sector is gaining traction. Embedded RFID, biosensors and antimicrobial treatments are revolutionizing how textiles interact with users, enabling smart clothing, traceability and functionality beyond aesthetics.
Comparative Snapshot of Top Manufacturing Industries in India 2025
| Sector | 2024 Market Size | Growth Outlook | Role of Embedded Systems |
| Electronics | $115 Bn | 3x by 2026 | SoCs,IoT integration |
| EV & Auto Components | $56.5 Bn | Strong | BMS, MCUs, telematics |
| Pharma & Biotech | $25 Bn (exports) | Steady | Cold chain, diagnostics |
| Metals & Minerals | Rising | Moderate | Automation, monitoring |
| Embedded & Automation | $4.47 Bn | 0% CAGR | Cross-industry applications |
| Drones & UAVs | Growing | $23 Bn by 2030 | Navigation, telemetry |
| Data Centers | $5 Bn | 25% CAGR | Energy, uptime management |
| Specialty Chemicals | Expanding | Niche | Process control systems |
| Medical Devices | Rising | High | Portable, real-time diagnostics |
| Technical Textiles | Emerging | Niche-Mainstream | Smart wearables, biosensors |
Evolute Group: Driving India’s Embedded Revolution
Evolute Group is at the forefront of embedded innovation across manufacturing industries in India. With deep expertise in firmware, hardware and IoT platform development, Evolute builds customized embedded solutions for fintech. Their solutions enable scalable automation, boost operational intelligence and support India’s vision for a tech-powered manufacturing economy.
Conclusion
The future of manufacturing industries in India is intelligent, automated and deeply embedded in innovation. With sectors like electronics, EVs, pharmaceuticals and automation leading the charge, the role of embedded systems cannot be overstated. Organizations like Evolute Group are empowering industries with smart, scalable solutions to thrive in this era of Industry 4.0.
Key Highlights
- India’s industrial output rose 2.6% in May 2025, signaling robust sectoral health.
- Government-backed schemes like PLI, Semicon India and FAME-II are accelerating growth.
- Embedded systems are powering transformation across all manufacturing verticals.
- Evolute Group is a key enabler of embedded-led industrial automation in India.
- India’s manufacturing journey is on track to become globally competitive and tech-led.
