India's Manufacturing Transformation: Key to Development

New Delhi, May 30 (PTI) Transformation of India's manufacturing sector is essential for India to become a developed nation by 2047 and also take people out of agriculture, NITI Aayog CEO BVR Subrahmanyam said on Friday.

Addressing an event organised by industry body CII, he said NITI Aayog is looking at restructuring the entire skilling landscape in India.

"We need manufacturing transformation which will take people out of agriculture...manufacturing transformation is essential for India to become a developed nation," Subrahmanyam said.

According to Economic Survey 2023-24, the Indian agriculture sector provides livelihood to about 42.3 per cent of the population and has a share of 18.2 per cent in the country's GDP at current prices.

He pointed out that currently in India, 90 per cent of manufacturing activities are happening in 5-6 states.

"China has placed itself at the heart of the global supply chains...Should not India also be a heart of global supply chains," he said.

He claimed that share of manufacturing in India's GDP is 17 per cent.

Recently, Finance Minister Nirmala Sitharaman had said that India plans to increase the share of manufacturing sector from 12 per cent to 23 per cent over the next two decades.

Noting that uncertainty in the world today has thrown up huge opportunity for India, Subrahmanyam said," We need to focus on winning sectors."

He also said the National Manufacturing Mission will have an overarching body which will have the power to give directions, control and ensure things are done to kick manufacturing to a higher level in India.

“We are in the final stages of that, probably in a month's time, it will probably get announced,” Subrahmanyam said.

Sitharaman had in Budget 2025-26 speech said a National Manufacturing Mission will be put in place to cover small, medium and large industries for furthering Make in India.

“What we need is a body with teeth, a body which can get things done. So we are looking at how it is to be structured, how it gets that kind of a muscle that it actually gets things done spread across multiple departments,” he added.