India’s manufacturing sector must achieve a 15% annual growth rate to elevate its contribution to 25% of the GDP by 2047, according to NITI Aayog CEO BVR Subrahmanyam. Speaking at a Confederation of Indian Industry (CII) event, he emphasized that manufacturing currently accounts for 17% of India’s GDP, and scaling it up is crucial for India’s $30 trillion economic vision.
Key Growth Targets for ‘Viksit Bharat 2047’
- Manufacturing GDP Contribution: Increase from 17% to 25%.
- Annual GDP Growth Rate: Must rise from 6.5% to 7.5%.
- Urbanization Expansion: India’s urbanization rate must exceed 50%.
- Energy Sector Transformation: Focus on carbon-neutral energy sources.
- Global Value Chain Integration: Strengthen India’s role in global trade networks.
Challenges & Opportunities
Subrahmanyam highlighted that India is transitioning from a net importer to a net exporter of mobile phones, showcasing positive manufacturing trends. However, he raised concerns about regional imbalances, noting that five or six states account for 90% of domestic and foreign investments. He stressed the need for inclusive growth across all states.
Government’s Vision & Policy Support
Prime Minister Narendra Modi has urged states to develop individual vision documents aligned with the ‘Viksit Bharat’ initiative. By the end of 2025, all states and Union Territories are expected to have their roadmaps for 2047, ensuring a cohesive national strategy.
What’s Next?
With India’s industrial transformation gaining momentum, policymakers and industry leaders are expected to accelerate reforms, ensuring manufacturing-led economic growth.
