National Manufacturing Mission to be rolled out in June; states to play key role, says NITI Aayog CEO

NITI Aayog CEO BVR Subrahmanyam

India’s proposed National Manufacturing Mission will be launched within a month and will function as an empowered decision-making body to drive manufacturing growth through coordinated policy action, targeted incentives, and infrastructure support, NITI Aayog CEO BVR Subrahmanyam said on May 30.

A National Manufacturing Mission to support small, medium and large industries and further the “Make in India” agenda was first announced by Finance Minister Nirmala Sitharaman in the Union Budget 2025–26 presented in Parliament on February 1.

“It will be an over-arching body to give directions to ensure things are done,” Subrahmanyam said at the Confederation of Indian Industry’s (CII) Annual Business Summit in New Delhi. “I don’t think advisory bodies work. We are looking at structuring the National Manufacturing Mission so that it gets some muscle. It will not be an advisory body,” he emphasised.

Regions in Focus

The mission aims to bring both central and state governments onto a common platform to accelerate sector-specific manufacturing growth, particularly in underdeveloped regions. “States will have a strong involvement in the National Manufacturing Mission,” he said.

Addressing regional disparity and boosting gender inclusion will be among the mission’s core goals. “Getting women in manufacturing, ensuring regional balances is the objective of the National Manufacturing Mission,” he noted.

Subrahmanyam highlighted that 5–6 states currently dominate India’s manufacturing output, and this imbalance must be addressed to create a more equitable industrial ecosystem. “Regional imbalances exist,” he said, calling for a geographically diversified manufacturing strategy.

Outcome-Driven Strategy

The mission will take a goal-oriented approach by identifying high-potential sectors and industrial clusters where India can build global competitiveness. “We need clear targets to be monitored in manufacturing in winning sectors, clusters,” he stated, adding that the mission is expected to deliver results by 2030.

The broader vision is to increase manufacturing’s share in India’s GDP to 25 percent by 2047 at $7.5 trillion — up from the current 15–17 percent — as part of the roadmap to becoming a $30 trillion economy.

Bottlenecks

Subrahmanyam acknowledged that utilities, water supply, electricity, and connectivity—often the responsibility of states—remain crucial enablers of industrial growth. “A lot of things have to be done at the state level,” he said.

He also flagged human capital as a persistent constraint, particularly for small and medium enterprises. “Getting skilled manpower is a pain point for medium and small firms. It’s a strong bottleneck,” he observed, calling for a renewed focus on sector-specific skilling and industrial training. “There is a need for specialised skillsets for industrial infrastructure.”