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Industry II

Vision and Mission

The Industry-II Vertical deals with the following domains:

  • Steel sector
  • Textiles, handloom, and handicraft sector 
  • Capital goods and engineering sector
  • Automotive industry
  • Circular economy
  • Blue economy

Initiatives in the above domains are taken independently as well as in coordination with the relevant stakeholders. NITI-led initiatives include organisation of seminars, preparation of position papers, policy analysis and engagement with think-tanks. The Vertical directly coordinates these initiatives with the Ministry of Steel, Department of Heavy Industry and Ministry of Textiles. Matters concerning the promotion of circular economy and blue economy are coordinated through the nodal Verticals of NITI Aayog.


The National Steel Policy, 2017, envisages the creation of a technologically advanced and globally competitive steel industry that promotes economic growth. The National Capital Goods Policy, 2016, was formulated with the vision to increase the share of capital goods’ contribution from the current 12% to 20% in the total manufacturing activity by 2025. The automotive industry is going through adjustments of increasing regulations and transitioning to electric mobility. The textile industry is facing multiple challenges: competitiveness, scale and size, need to align to a changing mix of fibre in global value chains, and promoting new business segments, for example, technical textiles. The emerging scenario for Indian manufacturing in all these segments is full of business, technological and societal challenges. Increasing digitization and the deployment of Industry 4.0 technologies are expected to change not only the competitiveness landscape but also the way goods and services are produced and consumed. 


Against the background of these sectoral visions and challenges, the broader vision of the Vertical is to:

  • Proactively locate drivers having the potential for disruptive change in their respective manufacturing domains and to look for possible policy and programme responses to enable Indian manufacturing to appropriately respond to the emerging global and domestic environment.
  • Lay a framework for early adoption of circular economy principles and processes in economic activities.
  • Enable cooperation, collaboration and integration of initiatives and programmes in the blue economy domain.

Core Functions

The core functions of the Vertical include:


Policy Formulation

The Vertical was actively involved in the consultative process during the development of the National Capital Goods Policy, 2016, and the National Steel Policy, 2017. In the recent past, the Vertical has been closely engaged in development of the ‘Draft Recycling Policy’ and ‘Draft Maritime Policy’. Initiatives for circular economy and blue economy are at different stages of development by the relevant Ministries/Departments.


Project and Schemes’ Appraisal

The Vertical provides key inputs for weeding out, rationalising or continuing schemes, as well as considering the objectives and intended outcomes of Government intervention.


Research Studies

The Vertical initiates studies in the manufacturing sector to examine/evaluate a range of issues. The insights provided by these studies are utilised in the formulation of programmes and policies, or in decision making.  


Coordination with Ministries

The Ministries/Departments regularly engage with the Vertical on mandated matters that are brought for the consideration of the Cabinet, Cabinet Committee on Economic Affairs (CCEA), EFC and SFC. In addition, Adviser (Industry) participates, as a member, in project approval committees constituted for administrative Ministries.    


Coordination with States

The Vertical engages with the assigned States, namely Madhya Pradesh, Chhattisgarh, and Kerala, on the issues referred by them. The lead role is taken by the respective Members of the NITI Aayog. The issues raised by the Chief Ministers in the Governing Council meeting are taken up with the respective Ministries through the Governance Vertical of NITI Aayog.


NITI Aayog was involved as a stakeholder in the process of developing the Aatmanirbhar Madhya Pradesh Roadmap, on the request of the Chief Minister of Madhya Pradesh. Adviser (Industry II) was the nodal link officer for this special initiative.


Interaction with Think Tanks and Industry Associations

The Industry Vertical frequently engages in industry-led discussion forums. It also provides support for the participation of Member (Industry), NITI Aayog, on public forums and for developing position on issues raised by industry bodies.


Who’s Who

Mr Sudhir Kumar, Adviser,

Ms Sunita Goel, Economic Officer,



  • CII
  • Society of Indian Automobile Manufacturers 
  • Material Recycling Association of India 
  • Automotive Component Manufacturers Association 
  • Textile Industry Associations
  • Export Promotion Councils

Line Ministries

  • Department of Heavy Industry
  • Ministry of Steel
  • Ministry of Textiles



  • Ease of Doing Business: Enterprise Survey on Business Regulatory Environment in India, 2017
  • A policy paper on Capital Market Predation in the Internet Commerce Sector, IIM, Bengaluru, March 2019
  • Promoting Bicycles in India, 2019,
  • Evaluation Report on Technology Upgradation Fund Scheme, 2019


Current and Upcoming Projects

  • Development of Mega Textile Parks: Assessment and PPP Structuring Options, E&Y
  • Enabling Ecosystem for Enhancement of Competitiveness in the Indian Capital Goods Sector: Focus on Machine Tools’ Sector and Electricals Manufacturing Sector
  • Transitioning from Linear to Circular Economy: An Impetus for India’s Aatmanirbhar Bharat Abhiyaan (a synthesis report based on action plans by stakeholder ministries) 
  • Action Plan for Promotion of Blue Economy (a synthesis report based on action plans by stakeholder ministries)
  • Challenges in Promoting Producers’ Companies in Handloom and Handicraft Sector with Focus on Aspirational Districts