NITI Aayog Maps Four Sectors to Power India’s Manufacturing Growth

India’s telecommunications market has more than 1.2 billion subscribers, providing manufacturers with a large domestic base from which to expand production and develop export capabilities.

India could strengthen its position as a global manufacturing hub by concentrating on industries where domestic demand, export opportunities and opportunities for greater local production come together, according to a new NITI Aayog report examining chemicals, textiles, telecom equipment and solar photovoltaic manufacturing.

The report, Key Sectors to Position India as a Global Manufacturing Hub, compares India's capabilities with global manufacturing trends and considers factors such as infrastructure, technology, raw materials, employment, policy support and the country's position within international value chains. Eight more sectors are expected to be covered in future reports.

Chemicals and Textiles Offer Room for Greater Value Addition

India's chemicals industry has opportunities to expand downstream production and make better use of available feedstocks, particularly across petrochemicals, organic chemicals, specialty chemicals and inorganic products.

NITI Aayog identifies stronger domestic manufacturing, competitive investment and strategic use of free trade agreements as ways to reduce import dependence and build deeper capabilities across the chemicals value chain.

Textiles remain particularly important because the industry contributes about 2% of national GDP, 11% of manufacturing gross value added and 9% of merchandise exports, while supporting more than 45 million livelihoods.

India exported $37.7 billion of textile products in fiscal 2025 and held 4.1% of global textile and apparel exports. Future growth could come from technical textiles, man-made fibre products, sustainable materials and premium Indian weaves, supported by better skills, technology and market access.

Telecom Manufacturing Could Build on Huge Domestic Market

India's telecommunications market has more than 1.2 billion subscribers, providing manufacturers with a large domestic base from which to expand production and develop export capabilities.

Priorities identified in the report include deeper localisation of components, technology transfers and joint ventures, integrated industrial clusters and stronger testing and certification infrastructure.

Expanding domestic component manufacturing could help India capture more value from its telecom market rather than depending heavily on imported parts, while investment in skills and research could strengthen its ability to compete in higher-value segments.

Solar Manufacturing Faces Major Expansion Opportunity

India had installed 106 GW of solar capacity by March 2025 and needs roughly another 174 GW to reach its 280 GW target by 2030, creating substantial demand for photovoltaic equipment.

The domestic PV market, estimated at Rs 32,400 crore, is projected to grow at an annual rate of 17% to 20% between fiscal 2023 and 2030, supported by utility projects, rooftop installations, open-access solar and demand connected with green hydrogen.

NITI Aayog calls for stronger upstream manufacturing, technology partnerships, research investment, clean-tech industrial clusters and industry-led skills development to reduce dependence on imports and capture more value domestically.

The report presents these sectors as starting points rather than isolated opportunities, with coordinated action between government and industry seen as essential for building manufacturing scale, raising exports and making Indian companies more competitive in global markets.