That manufacturing is a key pillar for a Viksit Bharat in 2047 is a given. Most economists, barring a few, are in agreement on the criticality of manufacturing for a nation to become developed. Job creation should be targetted as the biggest outcome of the transformation of India into a manufacturing powerhouse, as we need to convert the power of our young demography into a massive dividend. Therefore, for India to reach a GDP of $30 trillion from $3.6 trillion today, manufacturing will need to contribute a minimum of 20 per cent, preferably 25 per cent, of GDP by 2047. Up from a stagnant 1317 per cent in the last four decades. That would make its contribution from $0.5 trillion today to $6-7.5 trillion in 2047.

The previous government had taken several steps to provide a fillip to manufacturing, including creating champions in 14 sectors through the PLI schemes. Corporate taxes for new manufacturing units had been reduced considerably. Taking it further, the BJP in its recent manifesto has pledged to transform India into a global manufacturing hub and boost employment in crucial sectors such as electronics, defence, mobile, pharma, textiles and automotive.

While the Centre, possibly through the Budget in mid-July, will continue the thrust towards the transformation, the action on the ground takes place in the States. The implementation of central policy has to be suitably adapted by the States and then executed. In the States. At their districts. That is where the real challenge lies and must be addressed.

The appointment of a ‘sherpa-like’ person of high credibility at the Centre and individually in key manufacturing States could be a pivotal step in orchestrating this transformation of India as a manufacturing powerhouse, by creating for businesses a pathway through the complexities of India’s myriad — as each State has its own — manufacturing ecosystems.

Josh Linkner, a best selling author, delineates five powerful lessons borrowed from the original sherpas, who we all know as a part of the Tibetan ethnic group with their rich culture, climbing skills and ability to endure high altitudes with little oxygen. These lessons are: leading others to the top; detailed planning; expecting and preparing for setbacks; walking with the team; and being a great listener.

Therefore, selection of the right person(s) as sherpas, at the Centre and the States, will be critical. They must command respect at the Centre and within their respective States, by having delivered in manufacturing and/or industrial policy in the past.

India’s federal structure: Requires alignment not only of policies, but also on seamless implementation between the Centre and the States, i.e., a coordinated approach to leveraging opportunities and overcoming challenges at various levels. While the Centre’s sherpa would be intimately involved in formulating policies at the Centre, the State sherpas would tailor these policies to the needs and requirements of their respective States and convert them into a plan for implementation. Both the Centre and States would, therefore, have the ownership to see these policies through to implementation.

Policy formulation: Facilitation thereof would be a key role of the Central sherpa in close collaboration with the State sherpas. We have to go beyond the PLI scheme applicable to the champion sectors already mentioned. While mobile phones have done well, the other sectors have until now underperformed. It would be important to understand the causes thereof and smoothen the bumps. The sherpas must work with industry chambers, especially those representing MSMEs, to facilitate policy formulation, adaption and implementation.

Having said that, what is required is deeper reforms, specifically in land and labour. Land (acquisition and requisitioning of property) and labour fall under the Concurrent List and are politically sensitive. Land itself falls under the State list. Amongst the biggest contributions of the sherpas would be to facilitate reforms in land and labour, even if in stages.

Infrastructure and logistics : Businesses prefer plug-and-play industrial parks as industrial parks come with requisite infrastructure and pre-approved clearances. This allows businesses to start production in the shortest possible time frame, as also focus their energy and resources on innovation. The Mahindra World City at Chennai and Jaipur under the public-private-partnership are good examples. The State sherpas could do well to facilitate creation of many, many more industrial parks, preferably under the PPP mode, while ensuring that the connectivity to-and-from these parks to the State and National Highways is world class.

Similarly, the PM’s Gati Shakti programme for multi-modal connectivity which expects to reduce average logistics cost to 8-9 per cent by 2030 from 13 per cent today, and further to a globally competitive 6-7 per cent in due course, must be expedited to completion within the targeted time-frame or earlier.

Ease of and cost of doing business: One of the greatest contributions that the sherpas can make is to help dismantle our cumbersome regulatory framework, particularly at the States. Simplicity, together with self-regulation must be the objective. Manufacturing companies — both domestic and foreign — will be attracted to States with the highest ease and lowest cost of doing business as it makes them more competitive.

R&D and innovation: This forms the foundation for the success of the transformation to a manufacturing powerhouse. The sherpa at the Centre would do well to work with the Department of Science and Technology, the Principal Scientific Advisor, industry chambers and directors of the institutes of higher learning, to understand and facilitate the implementation of the National Research Foundation Bill, 2023 and the ₹1-lakh crore corpus to promote technological innovation in sunrise sectors as announced in the interim budget in February 2024.

These juxtaposed with solutions to bridging the valley of death — that is, from Technology Readiness Levels 3 to 7, when most ideas do not make it from the experimental proof-of-concept to prototype demonstration in an operational environment.

Taken together, these will go a long way in enhancing the national investment in R&D from our 0.7 per cent to the developed world’s 2.5 per cent.

Trade and export: A manufacturing powerhouse by definition means a global player. The central sherpa would do well to work with the Commerce and Industry Ministry, the Ministry of External Affairs and the chambers of industry to identify key export markets — by product — and facilitate prioritising of and negotiation of Free Trade Agreements. Through autonomous organisations like the Quality Council of India, the sherpas could ensure that Indian manufacturers, especially MSMEs, meet global quality standards and certifications.

The appointment of the sherpas at the Centre and States can go a long way in addressing the multi-faceted challenges facing the manufacturing sector in its quest to become globally competitive. We have the leadership, the desire, the will, the ambition and the talent to transform India into a global manufacturing powerhouse. We need better seamless coordination amongst all stakeholders.

The writer is Independent Director, and former MD and CEO, Ashok Leyland and JCB India. Views are personal