Context:
• NITI Aayog Vice Chairperson Suman Bery confirmed that a Cabinet note for the National Manufacturing Mission (NMM) is underway.
• The Mission seeks to raise the share of manufacturing in India’s GDP by strengthening supply chains, standards, skills, and state-level industrial ecosystems.
Key Highlights
- Cabinet Note in Progress for NMM
- NITI Aayog drafting a Cabinet note for launching the National Manufacturing Mission.
• Goal: significantly increase manufacturing’s contribution to GDP.
- Focus on Supply Chains, Standards & Skills
- Emphasis on:
– Supply chain development
– Strong quality standards
– Robust skill ecosystems
• Aim is to enable small enterprises to scale and become part of global value chains.
- Tailored State-Specific Strategies
- Manufacturing strategies to reflect each state’s unique endowments rather than a uniform approach.
Significance
- India’s Industrial Strengthening Over the Decade
In the last 10 years, India has strengthened:
– Infrastructure (highways, ports, logistics)
– Regulatory coherence
– Digital backbone (UPI stack, e-governance)
– Logistical networks (freight corridors, cold chains)
These foundational improvements support NMM’s long-term goals.
- Why the Mission Is Needed
- Despite progress, manufacturing growth remains below desired levels.
• India aims to become a global hub for:
– Electronics
– Automobiles & EVs
– Textiles & apparel
– Semiconductors
– Medical devices
• NMM will help address key bottlenecks in these sectors.
- Focus on Smaller Enterprises & Regional Ecosystems
- MSMEs often lack the capacity to integrate into global production networks.
• NMM will support:
– Technology adoption
– Market access
– Credit & infrastructure
– Cluster development
• Emphasises competitive state-level ecosystems based on local strengths (e.g., Tamil Nadu for automobiles, Gujarat for chemicals, Karnataka for electronics, etc.)
- Moving Beyond the “One-Size-Fits-All” Model
- Recognizes that states have diverse resource bases, workforce capabilities, and industrial histories.
• Mission will encourage state-specific industrial policies.
Mains-Oriented Analysis
GS-3: Economy | GS-2: Governance
- Manufacturing as an Engine of Growth
• Manufacturing contributes to job creation, exports, and technology development.
• India’s share of manufacturing in GDP stagnates around 15–17%, below targets like Make in India’s 25% goal. - Importance of State-Level Industrial Ecosystems
• Industrial success depends on state-level policies, land/labour reforms, and cluster competitiveness.
• Tailored strategies align with competitive federalism. - Strengthening Value Chains & MSMEs
• Global manufacturing increasingly depends on integrated global value chains (GVCs).
• NMM aims to push Indian MSMEs into these networks through:
– Standardisation
– Skills
– Technology
– Market access - Policy Coherence & Institutional Reform
• Mission strengthens alignment between:
– Centre
– States
– Private sector
– Global investors
• Supports long-term national goals like Viksit Bharat 2047. - Challenges Ahead
• Skilled workforce shortages
• Global competition in electronics/EVs/textiles
• High logistics costs
• Access to affordable credit
• Need for sustainable manufacturing practices