NITI Aayog suggested that India improve cluster-based manufacturing and establish integrated industrial parks featuring shared utilities, infrastructure, and simplified approvals to attain scale and decrease costs, while launching the initial volume of a study intended to position the nation as a global manufacturing hub.

The prominent think tank recognized manufacturing as the most effective means for India to utilize its young workforce, which has a median age of around 28, in meaningful employment.

“The manufacturing sector can provide jobs for a diverse range of skill levels, create secure and formal employment, and boost productivity by utilizing better processes and technologies,” the Aayog declared.

The study titled ‘Key Sectors to Position India as a Global Manufacturing Hub’ highlighted 12 sectors in which India can strive for international leadership by 2047 — electronics, telecom devices, solar panels, pharmaceuticals, chemicals, automotive, defense and drones, steel, capital equipment, textiles, food manufacturing, and leather and footwear. This initial volume examines four topics in depth: chemicals, textiles, telecommunications, and solar photovoltaic systems.

The report’s main recommendations include reducing dependence on imports through targeted incentives and viability gap financing, boosting domestic value addition, promoting joint ventures and technology transfers, improving labor productivity, and broadening export markets while securing equitable free trade agreements.

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“India can conserve foreign currency, mitigate the impact of global price changes, and ensure a steady supply of essential chemicals by reducing its reliance on imports,” as per reports.

"We're not looking to rival China's scale." "NITI Aayog Vice-Chairman Ashok Lahiri remarked at the report's launch that economies of scale and scope are highly important to us."

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Lahiri argued that most investment must come from the private sector, stating that the government's responsibility is to remove all barriers, and emphasized that investment will only take place when profit exists.

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"It's not only about increasing the share of manufacturing in gross domestic product. It aims to improve productivity, increase, and expand India’s footprint in international markets,” Ashok states.