India’s policy think tank NITI Aayog pushes for the development of industrial clusters and adoption of advanced technologies to elevate the country’s position in global manufacturing, with an ambitious vision for 2035 and 2047.
NITI Aayog is pushing India to lean more heavily on industrial clusters and integrated manufacturing parks as it tries to lift the country’s global standing in factory production. The policy think tank argues that pooled infrastructure, shared utilities and faster clearances could help manufacturers grow at scale, cut costs and improve competitiveness.
The proposal is also tied to a labour-market argument. India has a median age of about 28, and NITI Aayog says manufacturing can create formal jobs across a wide range of skill levels while lifting productivity through better technology and production methods. In a separate roadmap released later, the agency went further, setting out a longer-term ambition to make India a leader in advanced manufacturing by 2035 by bringing in frontier technologies such as artificial intelligence, robotics and digital twins.
In its latest sector study, NITI Aayog identifies 12 industries where India could aim for global leadership by 2047, including electronics, telecom equipment, solar photovoltaics, pharmaceuticals, chemicals, automobiles, defence and drones, steel, capital goods, textiles, food processing, and leather and footwear. The first volume looks in detail at chemicals, textiles, telecom and network equipment, and solar photovoltaics, while also urging more domestic value addition, joint ventures, technology transfer and labour productivity gains.
The report also calls for a more targeted approach to imports and exports. It recommends viability gap funding, selective incentives and broader trade access, while warning that export markets should not be overly concentrated. In solar manufacturing, for example, it says India has relied heavily on the US market and should move deeper into polysilicon and wafer production while widening its customer base. In chemicals, it singles out products such as phenol, methanol and acetic acid. For textiles, it wants stronger skilling, apprenticeships, industry-academia links and better support for migrant workers, alongside a shift towards man-made fibres if India is to reach a $100 billion export target by 2029-30.
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