Chemicals, textiles, telecom, solar PV sector key to India's global manufacturing push: NITI Aayog
New Delhi, August 13
India's chemicals, textiles, telecom and network equipment, and solar photovoltaic manufacturing sectors can push India to become a global manufacturing powerhouse, according to a NITI Aayog report titled "Key Sectors to Position India as a Global Manufacturing Hub."
According to the report, India's chemicals industry has significant potential to enhance domestic value addition by expanding downstream production and improving feedstock utilisation.
Furthermore, the report said promoting domestic manufacturing, investing in competitiveness and strategically leveraging free trade agreements (FTAs) can help India reduce import dependence, strengthen downstream capabilities and support sustainable industrial growth.
At the same time, India's textile and apparel industry (T&A), that caters to around 2 per cent of national GDP, 11 per cent of manufacturing GVA, and 9 per cent of merchandise exports. It noted, "In fiscal 2025, India exported textile products worth USD 37.7 billion and accounted for 4.1% of global textile and apparel exports, making it the sixth-largest textile exporter globally."
India's textile industry can significantly boost its global competitiveness by improving raw material availability, scaling up manufacturing through infrastructure support and expanding market access through deeper trade integration.
On the telecom and networking equipment sector, the report noted that India has over 1.2 billion subscribers, nearly 85 per cent telecom penetration and around 75 per cent internet usage. It said the National Telecom Policy 2025 (NTP-25) aims to double the sector's GDP contribution and telecom exports, create one million jobs, and significantly boost investment and R&D spending by 2030.
"India's telecom and electronics sector has significant potential to enhance its global competitiveness by deepening localisation and strengthening domestic component manufacturing," it said.
Apart from this, NITI Aayog noted, India's solar manufacturing ecosystem can bolster its domestic value addition by strengthening upstream capabilities and slashing import dependence. Noting, the country needs to add around 174 GW of solar capacity to hit 2030 target of 280 GW solar capacity, it said, "The domestic PV market, estimated at Rs 32,400 crore / $3.7 billion, is expected to grow at a 17-20% CAGR between fiscal 2023 and fiscal 2030, supported by utility-scale solar, rooftop solar, open-access projects and green hydrogen-linked demand."
— ANI
Reader Comments
As someone who works in global supply chains, India's potential in textiles is real. The 4.1% global share is good, but with better infrastructure and faster clearance at ports, we could easily push to 8-10%. The question is whether the bureaucracy will allow it to happen.
Solar manufacturing is the most exciting part here. With 174 GW needed by 2030, we are looking at massive scale. But let's be honest – we still depend heavily on Chinese cells and wafers. The PLI scheme has helped, but we need to be even more aggressive on the upstream side. Make in India means the whole chain, not just final assembly!
Telecom sector targets are ambitious – 1 million jobs and double GDP contribution by 2030. But ground reality is that our telecom manufacturing has been growing, thanks to companies like Dixon and VVDN. The real test will be whether we can move from SKD/CKD assembly to high-value component design. Need more R&D tax incentives.
Interesting take from NITI Aayog. The chemicals sector is often overlooked but it's actually huge – from specialty chemicals to pharma intermediates. If India can improve feedstock utilisation like the report says, we could become a serious alternative to China in the global chemical supply chain. Let's hope the government follows through with the right policies.
The textile sector numbers are encouraging but compare with Vietnam – they've overtaken us in many segments. The problem is power costs and logistics. A textile unit in Surat pays almost double the electricity tariff compared to one in Ho Chi Minh City. Unless the
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