According to NITI Aayog Vice Chairman Suman Bery, India's goals to enhance its presence in international trade will hinge entirely on boosting the quality and competitiveness of its domestic manufacturing sector.

"We can achieve success in exports only if we excel in producing high-quality goods," Bery stated during the launch of the recent quarterly Trade Watch report, which specifically highlighted electronics exports.

Bery stated that international trade is "essential to the evolution of the Indian economy," and praised the team responsible for the report, notably NITI Aayog Member R.S. Sahoo and Chief Executive Officer B.V.R. Subrahmanyam, for maintaining the quarterly analytical initiative. He expressed optimism that the release would garner broader focus for shaping policy discussions and involving stakeholders.

Bery noted that India's efforts to bolster manufacturing aren't recent, linking the policy goal to the Industrial Policy Resolution established in 1956. He observed that despite India maintaining its global manufacturing value-added share at around 13 percent, it has not substantially grown over time.

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He differentiated between manufacturing and the wider industrial sector, which encompasses mining and construction, stating that the present policy emphasis is firmly on manufacturing. Recent policy debates, highlighted in the Economic Survey and the Union Budget, have emphasized initiatives for a National Manufacturing Mission to enhance competitiveness.

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"The initial aspect is economic susceptibility." A strong reliance on manufacturing inputs in a world of trade weapons leads to vulnerability. Policymakers and investors need to thoughtfully balance strategic self-sufficiency with the advantages of global specialization. He referred to this as a choice between making or buying that demands thoughtful policy, Suman states.

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"The second reason is employment. Evidence from countries such as China and Vietnam suggests that the share of manufacturing in total employment has peaked at lower income levels over time, complicating the traditional pathway from agrarian to industrial economies. For India, which faces a large and youthful demographic profile, manufacturing remains central to raising labour productivity and absorbing workers into more productive sectors," adds Suman.