Niti Aayog CEO BVR Subrahmanyam
Credit: PTI Photo
New Delhi: The central government is likely to come out with the National Manufacturing Mission next month that would provide a roadmap to boost the share of manufacturing in India’s gross domestic product (GDP) to 25 per cent by 2047 from around 17 per cent now, NITI Aayog CEO BVR Subrahmanyam said on Friday.
Speaking at an event organised by the Confederation of Indian Industry (CII), Subrahmanyam said an average annual growth of 15% would be needed to increase the share of manufacturing to 25% in the next over two decades.
To achieve this target, according to the NITI Aayog CEO, the work needs to be done in a mission mode. “We need a body with teeth, which can get things done. So, we are looking at how it is to be structured, the kind of muscle it needs to get things done spread across departments,” he said.
In the Union Budget presented in February Finance Minister Nirmala Sitharaman announced the government’s intention to set up a national manufacturing mission.
According to the Finance Minister, the mission would lay emphasis on five focal areas – ease and cost of doing business, future ready workforce for in-demand jobs, a vibrant and dynamic MSME sector, availability of technology, and quality products.
“The Mission will serve as an overarching body—one that not only guides and aligns efforts across ministries, but also ensures that our policies, incentives, and actions speak to a single, unified vision for India’s manufacturing future,” said Subrahmanyam.
According to the NITI Aayog CEO, the mission is in the final stage and would be formally announced next month.
He emphasised on the need for making India a significant player in the global value chain in line with China. “Look at China, systematically over the past 30 years it has placed itself at the heart of global value chains. Some or the other parts come from China, and there is a critical dependence on China. Shouldn't we be at the heart of the global value chain,” he asked.
Subrahmanyam said to achieve the developed India vision the size of the country’s economy should grow to $30 trillion by 2047 from the current around $4 trillion. The size of India’s manufacturing sector should reach $7.5 trillion when the country celebrates its 100 years of independence.
“To become a developed nation, India must undergo four major transformations — a shift from rural to urban living, a clean and large-scale energy transition, a complete overhaul of our education system to empower individuals, and a manufacturing revolution that creates quality jobs and drives economic growth,” he said.