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Informist, Thursday, Aug. 13, 2026

 

NEW DELHI – India needs to focus on a strategy combining innovation, scale, competitiveness, and integration into global value chains to become a global manufacturing hub by 2047, according to NITI Aayog. Currently, the manufacturing sector accounts for 17.5% of the country's gross value added.

 

"India has the potential to become a globally competitive manufacturing powerhouse, provided it combines ambition with sustained reforms, targeted investments, and disciplined execution," the report said. The sector holds potential as it can absorb labour at scale across diverse skill levels, create stable and formal jobs, and lift productivity through better processes and technologies, the government think tank said in a report.

 

The report analysed that chemicals, textiles, telecom and network equipment, and solar PV manufacturing represent four distinct yet complementary pathways through which India can accelerate industrial growth. These sub-sectors can also help generate employment, enhance technological capabilities, strengthen self-reliance, and expand presence in international markets.

 

In terms of challenges, import dependence on critical inputs, fragmented supply chains, infrastructure and logistics gaps, limited domestic value addition, technology constraints, and skill shortages continue to constrain competitiveness. "Addressing these bottlenecks will require a coordinated approach involving the Union and state governments, industry, academia, financial institutions, and the broader innovation ecosystem," the report said.

 

While studying these four sectors, the NITI Aayog report found a common theme – "India possesses significant inherent advantages, including a large domestic market, a favourable demographic profile, an improving policy environment, growing infrastructure investments, and increasing global interest in supply-chain diversification," the report said. However, these strengths alone will not be sufficient to secure global leadership, it added.  End

 

Reported by Shweta

Edited by Avishek Dutta

 

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