Revitalizing its manufacturing sector and prioritizing manufacturing-led exports will accelerate India’s employment-intensive economic growth. This focus will diversify India’s export basket and incorporate high-tech products in its export basket that meet global standards. Unlike the conventional transition from primary sectors to manufacturing and then to services, India leapfrogged to services, hampering its manufacturing competitiveness and limiting its presence in global value chains. Even in the present, relatively more fragmented global markets, India must strive to increase its share in global trade. India’s share in global services trade is comparable to China’s (4.5-5%), but in manufactured exports, India lags significantly behind. In 1990, both countries had a 0.7% share of global trade. While China has grown its share to 14%, India’s remains under 2%.
India has the potential to become a major export-led manufacturing base. Some major MNCs like Samsung and Apple have already established large export-oriented capacities in recent years. Revamping export-led manufacturing is crucial for India to enhance competitiveness, open new markets, reduce trade deficits, create high-value jobs, and drive economic growth. By fostering innovation, improving infrastructure, and adopting advanced technologies, India can elevate the quality of its exports and compete internationally, establishing itself as a key global manufacturing hub and ensuring long-term economic resilience.
India stands at a critical juncture in its economic transformation. As the country accelerates toward the goal of becoming a Viksit Bharat by 2047, the quality of economic institutions, regulatory efficiency, and sectoral competitiveness will be decisive. As India seeks to attract global capital, deepen its integration into global value chains, and build world-class infrastructure, sector-specific reforms in ease of doing business will be a key determinant of long-term economic competitiveness. A uniform approach will not suffice. Each sector demands targeted reforms, supported by robust data infrastructure, performance monitoring systems, and inter-agency coordination mechanisms to ensure sustained impact and accountability.
At Pahlé India Foundation, we believe that unlocking growth and investment across key sectors is essential to realising this vision. The Ease of Doing Business (EoDB) vertical deeply addresses the business regulatory landscape, including compliance costs, and limited sector-specific research in India.
This vertical aims to fill that gap by promoting competitive reform across states, decriminalizing minor business offences, and implementing industry-specific reform strategies. We collaborate with governments and stakeholders to benchmark global best practices, assess regulatory frameworks, and conduct in-depth research to improve policy design. The focus is on enhancing MSME growth, improving governance efficiency, and branding India as a competitive global manufacturing hub.