Manufacturing Competitiveness Yields Growth, Jobs and Resilience

India needs a bold policy framework focused on tech adoption, capital access, industrial infrastructure and digital readiness

- CHANDRAJIT BANERJEE

India stands at a pivotal moment in its economic trajectory. With the global manufacturing landscape undergoing a strategic realignment, India is uniquely positioned to emerge as a key player in global supply chains. This transformation can anchor long-term economic growth, generate large-scale employment and strengthen industrial resilience—critical pillars for achieving the vision of Viksit Bharat. Manufacturing success is also a strategic and national security imperative, as a string of recent domestic and global events have demonstrated.

India's strong fundamentals—a growing middle class, rising consumption, a rich resource base and a youthful workforce—create a solid foundation. Yet, despite this promise, manufacturing contributes only about 17% to gross value added (GVA) and employs just over 11% of the country's workforce. These figures underscore the urgency of scaling and strengthening India's manufacturing base.

To harness the sector's potential, we need to adopt a comprehensive strategy focused on competitiveness, innovation and sustainability. I would suggest a five-pillar strategy to strengthen India's manufacturing competitiveness.

My first suggestion is to empower the National Manufacturing Mission: This government initiative can be a game-changer. To unlock its full potential, the Mission should be operationalized as a cross-ministerial, action-oriented platform with clear objectives: to increase the share of manufacturing in GDP to 25%, expand merchandise exports to $1 trillion by 2030 and create jobs at scale. A three-tier governance model—providing strategic oversight, implementation support and outcome monitoring—can ensure its effectiveness.