Purpose – The study aims to investigate the relationship between financial development and the growth dynamics of the manufacturing industry, offering empirical evidence from India. Design/methodology/approach – This study employs the time series autoregressive distributed lag (ARDL) model to empirically examine the effectiveness of financial development on the growth performance of India’s manufacturing industry in both the long run and short run. Findings – Financial development includes specific variables such as commercial banks’ credit, foreign direct investment inflows, market capitalization, real exchange rate and foreign trade openness have a significant positive effect, while money supply has a significant negative effect on the growth performance of the manufacturing industry in the long run. In the short run, money supply has a significant positive impact, whereas commercial banks’ credit has a significant negative effect on the growth performance of the manufacturing industry. Thus, an advancement in financial development will enhance the manufacturing industry’s growth performance in India over the short run as well as the long run. Research limitations/implications – The outcomes of this study are of significant importance to the Government of India (GoI) for fiscal consolidation and to the Reserve Bank of India (RBI) for effective monetary policy transmission, particularly in their efforts to promote financial inclusion and financial development in relation to the growth of the manufacturing industry amidst challenging market conditions. Originality/value – As a developing economy, India faces the challenge of advancing its financial infrastructure to boost national output and employment, particularly through the manufacturing industry. However, there has been a dearth of research focused on this crucial intersection. So, the study aims to provide a renewed perspective on the interconnection, offering valuable insights.