New Delhi, India: NITI Aayog has released a new report identifying chemicals, textiles, telecom and networking equipment, and solar photovoltaic manufacturing as four high-potential sectors that could strengthen India’s position as a global manufacturing hub.
The report, titled “Key Sectors to Position India as a Global Manufacturing Hub,” uses a structured and data-driven framework to assess sectors that can contribute to India’s manufacturing growth. The study examines market potential, infrastructure readiness, policy support, raw material availability, technology readiness, employment potential and India’s position in global value chains.
The assessment was carried out in four phases, beginning with the shortlisting of sectors based on domestic and global market size and growth prospects. This was followed by a comprehensive assessment of their market potential and competitiveness, international benchmarking and the development of sector-specific recommendations and an implementation roadmap.
Chemicals
The report identifies significant opportunities for India’s chemicals industry to increase domestic value addition, particularly by expanding downstream production and improving feedstock utilisation. Greater domestic manufacturing, competitiveness-focused investment and strategic use of free trade agreements could help reduce import dependence and strengthen downstream capabilities.
Textiles
India’s textile and apparel sector contributes approximately 2% of national GDP, 11% of manufacturing GVA and 9% of merchandise exports. The industry provides livelihoods to more than 45 million people and remains a major source of MSME-led industrial activity.
In fiscal 2025, India exported textile products worth US$37.7 billion, accounting for 4.1% of global textile and apparel exports and making India the world’s sixth-largest textile exporter. The report highlights raw material availability, infrastructure, trade integration, skilling, technology adoption, technical textiles, man-made fibre products and sustainable textiles as key areas for future growth.
Telecom and Networking Equipment
India is currently the world’s second-largest telecommunications market, with more than 1.2 billion subscribers, approximately 85% telecom penetration and nearly 75% internet usage.
The report highlights localisation and domestic component manufacturing as important priorities for strengthening India’s position in telecom and networking equipment. It also recommends greater use of joint ventures and technology transfer, integrated industrial clusters, expansion of high-potential export segments, and stronger testing, certification and skill development capabilities.
The report also notes that the National Telecom Policy 2025 targets doubling the sector’s contribution to GDP, doubling exports of telecom products and services, creating one million new jobs and increasing investment and R&D expenditure by 2030.
Solar Photovoltaic Manufacturing
India had installed 106 GW of solar capacity by March 2025 and needs to add approximately 174 GW to reach its 2030 target of 280 GW.
The domestic photovoltaic market was estimated at ₹32,400 crore (US$3.7 billion) and is expected to grow at a CAGR of 17% to 20% between fiscal 2023 and fiscal 2030. Utility-scale solar, rooftop projects, open-access installations and green hydrogen-linked demand are identified as key growth drivers.
The report recommends technology partnerships, joint ventures, increased R&D, performance-linked support, integrated clean-tech clusters and industry-led skilling to deepen domestic value addition and reduce import dependence.
NITI Aayog said the report is intended to serve as a guide for strengthening the manufacturing ecosystem in the selected sectors. It calls for coordinated action between industry and government, with sector-specific interventions designed to address existing challenges, improve competitiveness and support India’s long-term manufacturing ambitions.
The current edition covers four sectors, while eight additional sectors are expected to be covered in subsequent reports.
Source: This article is based on an official press release issued by the Press Information Bureau (PIB), NITI Aayog, Government of India
Press Release: Press Information Bureau
