2 min readNew DelhiFeb 1, 2026 08:27 PM IST
To boost the manufacturing ecosystem amid global supply chain shifts, Finance Minister Nirmala Sitharaman on Sunday announced schemes to revive 200 legacy industrial clusters.
This comes amid steep competition for manufacturing jobs with China as well as East Asian economies.
“I propose to introduce a Scheme to revive 200 legacy industrial clusters to improve their cost competitiveness and efficiency through infrastructure and technology upgradation,” Sitharaman said.
A NITI Aayog report last year pointed out that manufacturing has contributed 15-17% to India’s GDP, a figure significantly lower than that of East Asian economies like China and South Korea, where manufacturing accounted for over 25-30% during their peak development phases.
“For India to achieve the vision of Viksit Bharat by 2047, elevating the share of manufacturing to 25% of GDP is crucial not only for sustaining high economic growth but also for creating quality employment at scale,” the report said.
While the details of the schemes are awaited, a number of schemes for clusters are already in place. This includes Common Facilities for Medical Devices Clusters, which aims to strengthen existing infrastructure by providing financial assistance to medical device clusters for creating Common Infrastructure Facilities, boosting domestic manufacturing capacity and improving cluster quality.
The NITI Aayog report said that in design and engineering-intensive clusters like auto components, MSMEs are challenged with building in-house design capabilities.
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“As global competition accelerates, we must act with the highest sense of urgency and purpose. Advanced Manufacturing Leadership must become a national priority under the India National Manufacturing Mission, ensuring that technology adoption moves from fragmented experimentation to coordinated transformation — across sectors, clusters, and enterprises. This will demand seamless collaboration between government, industry, and the states, underpinned by long-term commitment and shared ambition,” the NITI Aayog said.
The decade ahead offers an unprecedented window to reimagine India’s role in the global manufacturing order. The journey to 2035 is not merely about transforming our factories — it is about transforming lives, building resilience, and positioning India as an undisputed leader in advanced, high-value manufacturing on the world stage, the report said.
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