NITI Aayog VC Suman Bery Says Cabinet Note on National Manufacturing Mission Is Underway

On Wednesday, Suman Bery, Vice Chairperson of NITI Aayog, highlighted that the next phase of reforms in India must prioritize supply chain development, standards, and skill ecosystems to enable small enterprises to scale effectively and integrate into global production networks. He emphasized that these reforms are crucial for India to strengthen its manufacturing sector and boost its share in the nation’s gross domestic product (GDP). Bery noted that the Cabinet note for the National Manufacturing Mission (NMM)—aimed at promoting manufacturing in India—is currently under preparation.

Bery pointed out that over the past decade, India has significantly strengthened its industrial economy. The country has invested heavily in infrastructure, improved regulatory coherence, and bolstered its digital and logistical backbones that link producers to markets. Despite these advancements, manufacturing, according to Bery, remains “one cylinder that isn’t firing” as efficiently as policymakers would like, indicating the sector’s underperformance compared to other parts of the economy.

At the Institute for Studies in Industrial Development (ISID) Conference on India’s Industrial Transformation, Bery elaborated on the structure of the National Manufacturing Mission. He highlighted the importance of industrial clusters and competitive ecosystems at both state and regional levels, which he termed key drivers of India’s industrial success. These clusters will be built in states and districts, requiring tailored strategies that reflect the unique endowments of each region rather than a uniform national approach.

Drawing parallels with the United States, Bery explained that industrial clusters are not necessarily confined within state boundaries. He suggested that India should explore mechanisms to link clusters across state lines. Initiatives such as State Industrial Development Reviews and the National Manufacturing Mission are expected to provide governance structures for these clusters. NITI Aayog is actively partnering with states to identify their comparative advantages, ensuring the effective design of clusters and industrial ecosystems.

Bery stressed that India cannot indefinitely rely on imported technologies or fragmented production structures. Strengthening and deepening domestic value chains is therefore a priority. The National Manufacturing Mission builds upon the Make in India initiative by attempting greater integration across various industrial and economic initiatives. Bery also highlighted emerging industries like green hydrogen, electric mobility, semiconductors, and advanced materials, emphasizing that these sectors will define the next industrial revolution. India’s challenge, he said, is to lead in these areas rather than merely follow global trends.

Finance Minister Nirmala Sitharaman, in her earlier budget speech, announced that the central government would establish the NMM to support small, medium, and large industries, with a particular focus on clean-tech manufacturing. The mission’s mandate focuses on five key areas: ease and cost of doing business, upskilling for in-demand jobs, MSME support, technology availability, and production of quality products.

The launch of the National Manufacturing Mission aligns with India’s strategic goal of increasing the share of manufacturing in GDP from the current 17% to 25%. The Economic Survey 2024-25 noted that while manufacturing is steadily recovering post-pandemic, growth still remains slightly below the pre-pandemic trajectory. The mission, through cluster development, skill enhancement, technological integration, and promotion of emerging sectors, aims to accelerate manufacturing growth, make Indian industries globally competitive, and ensure sustainable economic development across states and regions.