- target high manufacturing GVA: from current 17.5% needs to inc
- harness demographic dividend: median age 28yr
- benchmark against global industrial leaders eg. Vietnam, Germany
- 4 Key sectors:
- expand chemical sector, aim for 5-6% share in global chemical consumption
- increase textile export: $100B in export by FY30
- double telecom exports & domestic value addition under National Telecom Policy 2025: move from basic assembly to core components
- Solar PV Upstream Integration: current 106GW; 2030 target: 280GW
- transition manufacturing away from low margin peripheral assembly towards high value added components, advanced tooling
Challenges with Indian Manufacturing
- raw material, feedstock import deficit - import dependence eg. Solar wafer, telecom IC
- inverted duty structure, tariff distortion
- MSME fragmentation, sub optimal scale, limited capital access to small units
- high logistic cost: 8% of GDP
- port inefficiences: high turnaround time
- low labour productivity
- low R&D intensity
NITI Aayog recommendation
- strengthen domestic feedstock & upstream capabilities
- rationalize duty structure, customs
- modernize clusters via plug & play hubs
- upgrade port logistics & multimodal connectivity
- foster R&D, tech transfer, strategic FTA