We can learn from China, but our path is likely to be different: Niti Aayog’s Suman Bery

Niti Aayog vice chairperson Suman Bery (Courtesy: niti.gov.in)

India can draw lessons from China’s industrial rise but will need to chart its own distinct path of development, Niti Aayog vice chairperson Suman Bery said at the third ISID Conference on India’s Industrial Transformation held in New Delhi on October 29.

"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," Bery said. He added that India’s approach to industrialisation must centre on inclusion and adaptability rather than replication of external models.

"India's challenge is to lead, not to follow," he said, highlighting that the industries of the future — green hydrogen, electric mobility, semiconductors, and advanced materials — will define the next industrial revolution.

Industrial reform from the ground up

Bery underscored that the next phase of India’s industrial strategy must be state- and district-led, calling for the creation of regional industrial clusters rather than a top-down approach driven from New Delhi. "Industrial clusters should be built in states and districts, not from Delhi," he said.

He noted that while India has achieved progress in large-scale reforms, the next leap will depend on the integration of small and medium enterprises into global and domestic value chains through standards, logistics, and skill alignment.

Manufacturing must drive jobs and income

ISID director and Monetary Policy Committee member Nagesh Kumar emphasised that industrial transformation must translate into productive employment and rising incomes.

"The manufacturing sector has the highest backward and forward linkages of all productive sectors, so it can be an engine that drives both growth and job creation," Kumar said.

He cautioned that geopolitical uncertainty poses challenges, especially for India's labour-intensive exports. "Even though the US share in India's total exports is around 18–20 percent, its share in labour-intensive exports is much higher at 30 percent," he said, calling for greater diversification of trade partners.

Leveraging markets and trade

Kumar stressed that India must leverage its large domestic market while also deepening integration with global supply chains through free trade agreements (FTAs). He cited India's FTAs with South Korea and Japan as examples that could be more effectively utilised to boost trade and investment linkages.

Bery, meanwhile, underlined that industrial policy must balance innovation, sustainability, and inclusion, positioning India to lead the next wave of global industrial change rather than follow existing models.