Cabinet note on National Manufacturing Mission underway: NITI Aayog VC Suman Bery

Suman Bery said that, as in the US, clusters are not necessarily restricted to states, and that India has to look at mechanisms for bridging clusters that cross state boundaries. (File photo)

The next phase of reform must focus on supply chain development, standards, and skill ecosystems that enable small enterprises to scale and integrate into global production networks, Suman Bery, Vice Chairperson, NITI Aayog, said on Wednesday, adding that the Cabinet note for the National Manufacturing Mission (NMM), which aims to boost the share of manufacturing in India’s gross domestic product, is underway.

Bery said that over the past decade, India has rebuilt the foundations of its industrial economy, invested in infrastructure, improved regulatory coherence, and strengthened digital and logistical backbones that connect producers to markets, but added that “one cylinder that isn’t firing” as much as policymakers would like is manufacturing.

Speaking at the Institute for Studies in Industrial Development (ISID) Conference on India’s Industrial Transformation, Bery said that the cabinet paper for the NMM, which has been assigned to NITI Aayog and aims to boost manufacturing, is under preparation.

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“We observe clusters and the creation of competitive industrial ecosystems at the state and regional levels as key to India’s industrial success. It will be built in our states and districts, and therefore we must move beyond a uniform approach and craft strategies that reflect each state’s distinct endowments,” Bery said.

He said that, as in the US, clusters are not necessarily restricted to states, and that India has to look at mechanisms for bridging clusters that cross state boundaries. “I think that’s the kind of role that may require a different form of governance through initiatives such as the State Industrial Development Reviews and the National Manufacturing Mission, and NITI is partnering with states to identify their comparative advantage,” he said.

Bery said India cannot depend indefinitely on imported technologies or fragmented production structures, and that deepening domestic value chains is a key priority. He added that the National Manufacturing Mission builds on ‘Make in India’ by attempting greater integration across various initiatives.

“The industries of tomorrow, such as green hydrogen, electric mobility, semiconductors, and advanced materials, will define the next industrial revolution, and India’s challenge is to lead, not to follow,” he said.

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Finance Minister Nirmala Sitharaman, in her Budget speech earlier this year, announced that the central government will set up an NMM for small, medium and large industries with a focus on clean tech manufacturing. The mission’s mandate would include five focus areas – ease and cost of doing business, upskilling for in-demand jobs, MSMEs, availability of technology, and quality products.

The Mission’s announcement came as India aims to increase the share of manufacturing in its gross domestic product (GDP) to 25 per cent from the current 17 per cent. The Economic Survey 2024-25 also said that while “steadily recovering”, manufacturing growth in India “remains slightly below its pre-pandemic trajectory”.

Ravi Dutta Mishra

Ravi Dutta Mishra is a Principal Correspondent with The Indian Express, covering policy issues related to trade, commerce, and banking. He has over five years of experience and has previously worked with Mint, CNBC-TV18, and other news outlets. ... Read More