Champion Manufacturing Industries 2025
India is one of the fastest growing emerging economy. Manufacturing is key and at the heart of economic security as it provides a significant multiplier to economy in terms of output and employment creation. As per National Manufacturing Policy 2011, GoI ‘Every job created in manufacturing has a multiplier effect of 2-3X additional jobs in related activities.
Manufacturing is thus rightfully at the center-place of Hon’ble Prime Minister’s Vision for Make in India i.e. to increase contribution of manufacturing to GDP to 25%. The manufacturing sector will have to grow at at-least 12.7% year on year to power India’s economic growth story sustainably and to actualize the vision of Make in India.
Achieving this high growth trajectory will entail an integral blend of policy interventions and firm-level actions targeted at maximizing local value add, creating scale, capturing global market share and fulfilling India’s job creation needs. Make in India has brought about a significant shift towards local value addition, sustainable innovation and ease of doing business. It also aims at increasing federal and state alignment for coherent policy making and positions India centre-stage as a global manufacturing hub. In line with the above evolution, CII believes that it is time for the next phase of Make in India or Make in India 2.0 that will strategically identify specific Champion Industries which will drive growth in manufacturing. With this background CII Manufacturing Council has been working on an initiative to identify Champion Manufacturing industries that have the potential to drive double digit growth in manufacturing and contribute to significant job creation and in which India could be number 1 or 2 in the next 10 years.
CII identified a list of manufacturing sectors that contribute to the majority of manufacturing GDP which include Aerospace and Defense, Auto and Auto Components, Cement, Chemicals, Engineering, ESDM, Pharmaceuticals, Steel and Textiles. Within these 9 broad sectors CII identified 156 industries that comprise the universe of all major sub-sectors. For each of these 156 industries CII did an analysis on the Commercial and Strategic Attractiveness of the industry. Commercial attractiveness included factors such as Market Attractiveness, Competitive Landscape, Supply Chain Ecosystem, Ease of doing business, Favourable Infrastructure and Human resource capital and while Strategic Attractiveness included factors such as Industry Ecosystem Development, Economic Impact, Investment Favourability, Environment Sustainability.
Basis this criteria, a comparative analysis was done to identify 28 Champion Industries that were leading. These are Aircraft Components, Auto Electricals & Electronics, Automotive batteries, HCV, Passenger Cars, Two and Three wheelers, Cement, Agro Intermediates, Agro Chemicals, Basic Polymers and Elastomers, Construction Chemicals, Other Performance Chemicals, Valves and Pumps, Construction Machinery, Machine Tools, Pressure Vessels, Solar PV, Lighting (Conv. + LED), Mobile phones, PCB and PCB A, Bulk drugs, Pharma APIs, Generic Pharmaceuticals, Flats, Forgings and Castings, Longs, Apparels and Made-ups.
For each of the industries sectoral committees from within CII identified key interventions that would help give a fillip to the industry. Wide industry consultations were done at each step to ensure accurate articulation of recommendations. Common themes were identified from sectors and across sectors to identify sector level and overall manufacturing level recommendations respectively. The recommendations at the overall and sector level have the potential to create significant positive impact on other industries in the overall manufacturing sector. Championing Manufacturing in India will entail targeted interventions aimed at unleashing the basic building blocks of manufacturing such as cost, technology, manpower and policy regime and establishing the drivers for championing manufacturing such as building scale and market share, platform innovation, brand and sustenance.
Using the above framework CII has identified key policy interventions at the overall manufacturing level, sector level and industry level. If pursued these interventions will trigger significant Industry actions translating to the creation of Champion Industries, significant growth in output (from the current average sales growth of 8-10% to 15-20%), employment generation (from the current levels of 0-5% to 5-10%) and increase in India’s share of global manufacturing exports (from 1.6% currently to 3-4%).
CII’s Recipe of Excellence, which is an online tool developed by analysing performance of 32,000 companies and that benchmarks competitiveness across 6 functions – marketing, operations, supply chain, human resources and leadership, research development and technology and environment sustainability and governance to help identify a company’s weakest link, will in tandem help companies become more competitive and enable them to transition from good to great.
CII has shared the study and its findings with senior Government officials including Mr P K Sinha, Cabinet Secretary; Mr Amitabh Kant, CEO, NITI Aayog; the PM-appointed Group of Secretaries on Commerce & Industry (multiple occasions), Mr Ramesh Abhishek, Secretary, DIPP; Mr Ashok Lavasa, Finance Secretary; Ms Rita Teaotia, Commerce Secretary; Dr Aruna Sharma, Secretary, Ministry of Steel; Ms Aruna Sundararajan, Secretary, MEITY; Mr Girish Shankar, Secretary, Department of Heavy Industry, Ms. Rashmi Verma, Secretary, Ministry of Textiles; Mr Anuj Kumar Bishnoi, Secretary, Department of Chemicals & Petrochemicals; Mr. K. K Jalan, Secretary, Ministry of MSME and Ms. M Sathiyavathy, Secretary, Ministry of Labour & Employment. All officials have been very supportive of the initiative.
Mr Abhishek at the inaugural session of the conference on Make in India, Karnataka in February 2017 announced that the CII study would form the basis for Make in India 2.0.