India Targets 25% GDP Share from Manufacturing with 12-Sector Strategy

NITI Aayog’s latest report (August 13, 2026) identifies 12 priority sectors—including automobiles, electronics, steel, defence, chemicals, solar PV, textiles, and pharmaceuticals—as the backbone of India’s push to become a global manufacturing hub by 2047. The roadmap emphasizes local value addition, job creation, and integration into global supply chains.

Key Highlights of the Report

• Released by: Ashok Kumar Lahiri, Vice Chairperson of NITI Aayog
• Title: “Key Sectors to Position India as a Global Manufacturing Hub”
• Objective: Strengthen India’s manufacturing ecosystem to support the Viksit Bharat @2047 vision
• Methodology: From an initial pool of 62 sectors, 12 were shortlisted based on attractiveness, strategic importance, viability, and value-chain potential

The 12 Priority Sectors

Sector	Strategic Focus
Automobiles	EV adoption, supply-chain resilience
Electronics	Local component manufacturing, exports
Steel	Infrastructure-linked demand, global competitiveness
Capital Goods	Machinery, industrial equipment
Defence & Drones	Self-reliance, advanced tech
Chemicals	Feedstock availability, downstream value
Solar PV	Clean-tech clusters, import substitution
Textiles	Raw material scaling, global exports
Pharma & Medical Devices	Biopharma ecosystem, innovation
Telecom Equipment	Local value chains, global integration
Leather & Footwear	MSME-driven exports
Food Processing	Agri-linkages, packaged exports

Strategic Themes

• Global Supply Chain Diversification: India aims to capture opportunities as firms reduce dependence on single-country sourcing
• Employment Generation: Textiles alone employ 45 million people, second only to agriculture
• Technology & Innovation: Telecom and electronics sectors prioritized for joint ventures, R&D, and skill development
• Clean Energy Push: Solar PV manufacturing positioned to reduce import dependence and strengthen upstream capabilities

Challenges Identified

• Import dependence on critical inputs (telecom, chemicals, solar)
• Fragmented supply chains and logistics gaps
• Limited domestic value addition in high-tech sectors
• Skill shortages constraining productivity

Outlook

• Manufacturing currently contributes 17.5% of India’s GDP; the goal is to raise this to 25% by 2047
• India’s share in global manufacturing output is 3.2%, compared to China’s 32%
• The report calls for long-term, consistent reforms to replicate success stories like South Korea and Vietnam