Piyush Goyal chairs meeting on giving big push to manufacturing sector
New Delhi, May 22
Commerce and Industry Minister Piyush Goyal held a brainstorming session with senior officials of various ministries and captains of Indian industry on drawing up an action plan to strengthen the country's manufacturing sector.
"Chaired a comprehensive and productive meeting with officials from key ministries and leading industry associations to strategize on boosting domestic manufacturing," the minister said in a post on X.
"Reaffirmed the Government's commitment to working closely with industry to expand manufacturing capacities, enhance quality standards and strengthen global competitiveness for building an Aatmanirbhar Bharat," Goyal added.
The meeting comes against the backdrop of the Centre's plan to expand India from a $3.7 trillion economy to a $30-35 trillion economy by 2047, in which manufacturing is expected to play a central role, with its share in GDP rising to at least 25 per cent from the current level of 16 to 17 per cent.
In this context, India's manufacturing strategy has increasingly focused on the development of integrated manufacturing hubs, spatial ecosystems that combine physical infrastructure, regulatory support, common facilities, and connectivity. These hubs are designed to support scale, reduce transaction costs, and anchor long-term manufacturing activity, strengthening India's position within domestic and global production networks.
To achieve this goal, the government's manufacturing policy has shifted to infrastructure-led, integrated hub development to enable scale, reliability, and long-term industrial competitiveness, according to an official statement issued on Tuesday.
India's infrastructure approach has undergone a structural transformation, with the focus moving from project-level execution to system-level planning. Such system-level planning directly enhances the effectiveness of manufacturing hubs by reducing bottlenecks, improving logistics efficiency, and supporting timely execution.
The Government's capital expenditure has expanded from Rs 2 lakh crore in FY2014-15 to ₹12.2 lakh crore in FY2026-27 in a big push to infrastructure creation.
Global investment trends increasingly recognise India as a preferred manufacturing destination. The country is currently ranked as the third most sought-after manufacturing location worldwide. At the same time, the composition of production is evolving, with medium- and high-technology activities accounting for 46.3 per cent of total manufacturing value added, indicating a gradual shift towards more sophisticated industrial structures, the statement said.
MSMEs, which comprise 7.47 crore enterprises, account for 35.4 per cent of manufacturing output and anchor manufacturing hubs nationwide. This labour-intensive sector plays a key role in generating jobs in the economy and spurring economic growth.
The Union Budget for 2026-27 has proposed three chemical parks, seven PM MITRA parks, MSME clusters, and a Rs 10,000-crore Biopharma SHAKTI initiative to accelerate the pace of development.
— IANS
Reader Comments
Very encouraging to see the government's capital expenditure jump from ₹2 lakh crore to ₹12.2 lakh crore. That's a 6x increase! But as someone who works in a tier-2 city, I wonder how quickly these PM MITRA parks and clusters will actually get operational. Land acquisition and clearances are always a pain. Let's hope there's less red tape this time.
Good move, but I have a small concern—MSMEs make up 35% of manufacturing output, yet they struggle with access to credit and technology. The budget talks about MSME clusters, but we need simpler loan processes and skill training. Otherwise, these hubs will only benefit big corporates. Also, where's the focus on green manufacturing? India can't afford to ignore sustainability.
As someone who works in global supply chains, the shift to integrated manufacturing hubs in India is a smart move. Companies are looking to diversify away from China, and India's ranking as a top-3 destination is no accident. The emphasis on medium- and high-tech manufacturing (46% of value add) is key. But execution is everything—India needs to prove it can deliver on timelines and reduce logistics costs.
Ek baat batao—17% to 25% manufacturing share in GDP is a big leap. But is anyone talking about power supply and water availability for these hubs? I've seen factories in my district struggle with erratic electricity. Infrastructure is not just roads and ports; it's also reliable utilities. Otherwise, all this planning will just be on paper. 🙏
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.