This comes amid steep competition for manufacturing jobs with China as well as East Asian economies.
“I propose to introduce a Scheme to revive 200 legacy industrial clusters to improve their cost competitiveness and efficiency through infrastructure and technology upgradation,” Sitharaman said.
A NITI Aayog report last year pointed out that manufacturing has contributed 15-17% to India’s GDP, a figure significantly lower than that of East Asian economies like China and South Korea, where manufacturing accounted for over 25-30% during their peak development phases.
“For India to achieve the vision of Viksit Bharat by 2047, elevating the share of manufacturing to 25% of GDP is crucial not only for sustaining high economic growth but also for creating quality employment at scale,” the report said.
While the details of the schemes are awaited, a number of schemes for clusters are already in place. This includes Common Facilities for Medical Devices Clusters, which aims to strengthen existing infrastructure by providing financial assistance to medical device clusters for creating Common Infrastructure Facilities, boosting domestic manufacturing capacity and improving cluster quality.
The NITI Aayog report said that in design and engineering-intensive clusters like auto components, MSMEs are challenged with building in-house design capabilities.
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“As global competition accelerates, we must act with the highest sense of urgency and purpose. Advanced Manufacturing Leadership must become a national priority under the India National Manufacturing Mission, ensuring that technology adoption moves from fragmented experimentation to coordinated transformation — across sectors, clusters, and enterprises. This will demand seamless collaboration between government, industry, and the states, underpinned by long-term commitment and shared ambition,” the NITI Aayog said.
The decade ahead offers an unprecedented window to reimagine India’s role in the global manufacturing order. The journey to 2035 is not merely about transforming our factories — it is about transforming lives, building resilience, and positioning India as an undisputed leader in advanced, high-value manufacturing on the world stage, the report said.
Ravi Dutta Mishra is a Principal Correspondent with The Indian Express, specializing in economic policy and financial regulations. With over five years of experience in business journalism, he provides critical coverage of the frameworks that govern India's commercial landscape.
Expertise & Focus Areas: Mishra’s reporting concentrates on the intersection of government policy and market operations. His core beats include:
Trade & Commerce: Analysis of India's import-export trends, trade agreements, and commercial policies.
Banking & Finance: Covering regulatory changes and policy decisions affecting the banking sector.
Professional Experience: Prior to joining The Indian Express, Mishra built a robust portfolio working with some of India's leading financial news organizations. His background includes tenures at:
Mint
CNBC-TV18
This diverse experience across both print and broadcast media has equipped him with a holistic understanding of financial storytelling and news cycles.
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