NITI Aayog identifies four key sectors to position India as global manufacturing hub

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NITI Aayog has released a report titled “Key Sectors to Position India as a Global Manufacturing Hub”, identifying chemicals, textiles, telecom and networking equipment, and solar photovoltaic (PV) manufacturing as four high-potential sectors that can drive India’s manufacturing growth and strengthen its position in global value chains (GVCs).

The report provides a data-driven assessment of India’s manufacturing landscape by examining factors such as market potential, infrastructure, policy support, raw-material availability, technology readiness, employment potential and India’s position in global value chains.

The study aims to identify sectors where targeted policy interventions can strengthen domestic capabilities, increase value addition, reduce import dependence and promote export-oriented manufacturing.

Chemicals

The chemicals sector has been identified as an important area for expanding domestic manufacturing and increasing value addition. The industry broadly comprises petrochemicals and organic chemicals, specialty chemicals and inorganic chemicals.

Textiles and Apparel

The textile and apparel sector remains one of India’s most important manufacturing industries. It contributes around 2% of GDP, 11% of manufacturing GVA and 9% of merchandise exports.

The sector provides livelihoods to more than 45 million people and is the country’s second-largest employment-generating sector after agriculture.

Telecom and Networking Equipment

India is currently the world’s second-largest telecommunications market, with more than 1.2 billion subscribers, around 85% telecom penetration and nearly 75% internet usage, according to the report.

The National Telecom Policy 2025 has set targets to double the sector’s contribution to GDP, double exports of telecom products and services, create one million new jobs and significantly increase investment and R&D expenditure by 2030.

The telecom and networking equipment sector therefore offers significant opportunities for expanding domestic manufacturing, technological capabilities and exports.

Solar Photovoltaic Manufacturing

The report identifies solar PV manufacturing as another major opportunity for India, particularly in the context of the country’s renewable-energy transition.

India had around 106 GW of installed solar capacity by March 2025 and needs to add approximately 174 GW to achieve its 2030 target of 280 GW.

India’s domestic PV market, valued at around ₹32,400 crore ($3.7 billion), is projected to grow at a 17–20% CAGR between FY2023 and FY2030.

Growth in the domestic PV market is expected to be supported by utility-scale solar projects, rooftop solar, open-access solar and demand associated with green hydrogen.

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