NITI Aayog identified four manufacturing sectors with high potential—solar photovoltaic production, textiles, telecommunications, and network equipment, and chemicals—that may help India realize its goal of becoming a major manufacturing powerhouse.
The NITI Aayog’s research, titled “Key Industries to Position India as a Global Manufacturing Hub,” aims to comprehend India’s manufacturing environment in terms of global patterns, sectoral growth potential, and global standards.
It also explores the elements that impact manufacturing competitiveness, such as policy support, infrastructure readiness, market potential, technology readiness, raw material availability, employment potential, and India’s present position in the value chain.
“The project aims to find industries where India has a high growth potential and where targeted initiatives can improve domestic capabilities, boost competitiveness and value addition, and speed up export-oriented manufacturing growth,” according to an official announcement.
This issue of the report concentrates on four manufacturing industries with great potential, and future reports will cover eight additional sectors.
Three main consumption categories, namely petrochemicals and organic compounds, specialty chemicals, and inorganic chemicals, are the primary drivers of the domestic chemical sector.
The largest segment, petrochemicals and organic chemicals, includes end-products, intermediates, building blocks, performance plastics, synthetic fibers, and polymers.
The NITI Aayog report stated that “India’s chemicals industry has a substantial opportunity to improve domestic value addition by expanding downstream manufacturing and improving feedstock usage. ” “The industry’s sustainable growth may be supported by promoting domestic manufacturing, investing in competitiveness, and strategic usage of FTAs, which can help lessen reliance on imports and improve downstream capabilities. ”
India’s textile and apparel business is one of the most significant manufacturing sectors, accounting for about 2% of the country’s GDP, 11% of manufacturing GVA, and 9% of goods exports.
By improving raw material availability, growing manufacturing through infrastructure support, and expanding market access through deeper trade integration, India’s textile sector has a lot of potential to increase its global competitiveness. The paper stated,
With more than 1. 2 billion users, about 85% telecom penetration, and nearly 75% internet usage, India is now the world’s second-biggest telecommunications market.
According to the research, by improving localization and bolstering domestic component production, India’s telecom and electronics industries have a lot of potential to raise their worldwide competitiveness.
Among the most important goals are encouraging technology transfer and joint ventures, growing integrated industrial clusters, broadening high-potential export sectors, and enhancing skill development, certification, and testing to promote productivity, innovation, and scale.
Additionally, by reducing its reliance on imports and bolstering its upstream capabilities, India’s solar manufacturing ecosystem has a high chance of increasing domestic value addition.
Industry-led skilling, the growth of integrated clean-tech clusters, enhanced R&D and performance-linked support, and technology collaborations and joint ventures are important priorities.
According to the report, enhancing trade collaborations and G2G frameworks might also increase export chances and guarantee access to global markets.