What's Happening?
The National Mission on Manufacturing (NMM) has set ambitious goals to increase the manufacturing sector's contribution to India's GDP from 12.9% to 25% by 2035. This initiative, announced in the Union
Budget 2025-26, aims to generate 143 million jobs and boost merchandise exports to USD 1.2 trillion by integrating into global value chains. The mission focuses on sector-specific interventions across prioritized industrial clusters, aiming to enhance competitiveness through improved infrastructure and workforce productivity. Economist Rumki Majumdar highlights the shift from low-value shipments to high-value sectors like electronics and pharmaceuticals, indicating a climb up the value chain.
Why It's Important?
The NMM's goals are crucial for India's economic growth, aiming to transform the manufacturing sector into a global competitor. By doubling its GDP contribution, the initiative seeks to create millions of jobs and enhance export capabilities, which could significantly impact India's economic landscape. The focus on strategic sectors like semiconductors and electric vehicles aligns with global trends towards technological advancement and sustainability. This shift could reduce dependency on imports and increase resilience against global trade disruptions, positioning India as a key player in the global market.
What's Next?
The NMM will require coordinated efforts across government levels and industrial sectors to achieve its targets. The focus will be on enhancing the ease of doing business, strengthening infrastructure, and improving workforce skills. The success of this mission will depend on effective implementation and the ability to adapt to global economic changes. Stakeholders, including policymakers and industry leaders, will need to collaborate to ensure the mission's objectives are met, potentially leading to significant policy reforms and investments in key sectors.
