NEW DELHI, Oct 29: The next phase of reforms must focus on strategies to integrate small enterprises into the global supply chain, NITI Aayog Vice Chairman Suman Bery said on Wednesday.
Addressing the 3rd ISID annual conference here, he also emphasised that India cannot depend indefinitely on imported technologies or fragmented production structures.
Bery noted that the update of the calculations on social protection suggests that India has been doing much better than previous calculations.
“So, we are starting from a good place. But here we are to talk about one cylinder that isn’t firing as much as we would like, and that is manufacturing,” he said.
Referring to the National Manufacturing Mission announced in the Union Budget, he said it has been assigned to NITI, and the Cabinet paper is still under preparation.
“…we do see clusters and the creation of competitive industrial ecosystems at the state and regional levels as being key to India’s industrial success, will not be built in Delhi; it will be built in our states and districts. And therefore, we must move beyond a uniform approach and craft strategies that reflect each state’s distinct endowments…,” he said while providing a broader framework for the manufacturing sector.
He said NITI Aayog is partnering with states to identify their comparative advantage.
The proposed National Manufacturing Mission will lay emphasis on five focal areas, i.e. 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.
NITI Vice Chairman further said the deepening of domestic value chains in India is another priority.
India, he said, cannot depend indefinitely on imported technologies or fragmented production structures.
“And I would say the National Manufacturing Mission advances on Make in India as attempting a greater integration across various initiatives, he added.
Bery said the next phase of reform must focus on supply development standards and skill ecosystems that enable small enterprises to scale and integrate into global production networks.
He said the transition towards technology-led and climate-responsible growth is also a priority area, as the industries of tomorrow, such as green hydrogen, electric mobility, semiconductors, and advanced materials, will define the next industrial revolution.
Bery emphasised that industrial transformation must translate into productive employment, higher incomes, and a fairer distribution of opportunity.
Recalling his recent visit to China, Bery said his broad assessment is that “we can learn from China, but our path is likely to be different”.
Director of Institute for Studies in Industrial Development (ISID) and member of Reserve Bank’s Monetary Policy Committee (MPC) Nagesh Kumar spoke on various aspects of industrial transformation.
He said the manufacturing sector has the highest backward and forward linkages of all productive sectors, and it could be an engine which drives growth as well as job creation.
On the tariffs imposed by US President Donald Trump, Kumar said they affect India among all other countries, especially because the United States is a very important market for New Delhi’s exports, and stressed leveraging the domestic market and FTAs with different countries to drive growth.
ISID is organising the annual conference on ‘India’s Industrial Transformation: Towards a Manufacturing Strategy to Navigate Global Shifts’ with the financial support of the Indian Council of Social Science Research (ICSSR).
The three-day conference will focus on strategising India’s industrial policy in response to global economic shifts and policy uncertainties to realise the objective of Viksit Bharat @2047, drawing policy insights from India’s development path and other late industrialisers. (PTI)