NITI Aayog has identified textiles, chemicals, solar and other strategic sectors as critical to India’s ambition of becoming a global manufacturing hub. In its report, ‘Key Sectors to Position India as a Global Manufacturing Hub’, the policy think tank outlined targeted measures to strengthen domestic manufacturing capabilities, increase value addition and reduce import dependence.
Solar Manufacturing Can Strengthen Domestic Value Addition
According to the report, India’s solar manufacturing ecosystem has significant potential to increase domestic value addition by strengthening upstream capabilities and reducing reliance on imported components. NITI Aayog has identified several priorities to accelerate the sector’s growth. These include promoting technology partnerships and joint ventures, increasing research and development investments, providing performance-linked support, developing integrated clean-tech manufacturing clusters, expanding industry-led skill development and strengthening trade partnerships and government-to-government frameworks. Furthermore, stronger international partnerships can help Indian manufacturers expand exports and gain access to global markets.
India Needs More Solar Capacity by 2030
India had installed around 106 GW of solar power capacity by March 2025. However, the country needs to add approximately 174 GW more to reach its 2030 target of 280 GW of solar capacity. Therefore, strengthening the domestic solar manufacturing ecosystem will be important not only for meeting India’s renewable energy targets but also for creating a competitive manufacturing base. The report is intended to guide selected sectors in strengthening their manufacturing ecosystems over time. NITI Aayog has also highlighted the need for closer collaboration between industry and government, with sector-specific interventions designed to address existing challenges.
Chemicals Industry Offers Major Growth Potential
Meanwhile, the Indian chemicals industry presents significant opportunities for increasing domestic value addition and strengthening manufacturing capabilities. According to the report, the domestic chemicals industry is broadly driven by three major consumption segments: petrochemicals and organic chemicals, specialty chemicals, and inorganic chemicals. Petrochemicals and organic chemicals represent the largest segment. They include polymers, synthetic fibres, performance plastics, building blocks, intermediates and finished products.
Expanding Downstream Chemical Manufacturing
India’s chemicals sector can further increase domestic value addition by expanding downstream production and improving feedstock utilisation. In addition, promoting domestic manufacturing and increasing investments in competitiveness can help Indian chemical companies strengthen their position in global markets. The strategic use of free trade agreements (FTAs) can also help reduce import dependence while creating new export opportunities. Consequently, a combination of stronger domestic capabilities, targeted investments, technology development and international trade partnerships can support the sustainable growth of India’s chemicals industry.
Government-Industry Collaboration Key to Growth
As reported by tribuneindia.com, NITI Aayog’s recommendations highlight the importance of coordinated action between government and industry. By addressing sector-specific challenges and strengthening domestic value chains, India can improve manufacturing competitiveness, increase value addition and move closer to its goal of becoming a global manufacturing hub.
