Share of manufacturing in India's GDP: Stagnant or increasing?

• Manufacturing share in India's GDP has increased by about 16 percentage points between 2003 and 2018. • Dominant contribution to increased manufacturing GDP share is made by petroleum refining. • There has been a tremendous increase in the real value-added share of ICT equipment industry. • For assessing properly the performance of manufacturing, double-deflation of GDP is essential. Contrary to a widely held impression that the share of manufacturing in India's GDP has long stagnated, the paper claims that it has increased significantly. Measured at the prices of different goods and services prevailing in 2004-05, and deflation applied separately with input prices as well as output prices to account for differential input price trends, the GDP share of manufacturing has increased during the post-reform period from about 17 per cent in 1993-94 to about 32 per cent in 2018-19. The paper notes that the concept of real share in GDP relates to the volume effect and represents the change in the share of the volume of manufacturing activity out of the volume of all economic activities in the Indian economy. Some explanation is provided for the apparent stagnancy of the share of manufacturing in India's GDP at current prices. [ABSTRACT FROM AUTHOR]