India's manufacturing sector gained significant momentum in 2025, driven by policy incentives and evolving global supply chains, with the IIP showing a notable increase. This growth contrasts with China's economic slowdown, marked by weak demand, trade tensions, and a prolonged period below the 50 PMI mark. India has surpassed Japan to become the fourth-largest economy and is projected to overtake Germany, with industrial activity spreading across regions like Pune and Chennai.