India’s ambition to boost the share of manufacturing in its gross domestic product was the focus of a recent interview with Rahul Bajoria, chief economist at Bank of America, as reported by The Diplomat. Bajoria said the country’s policy framework, including initiatives such as “Make in India,” signals a clear intent to attract greater industrial investment and to reposition the economy away from services‑led growth.

According to Bajoria, the scale of the target is significant, requiring a sustained rise in capital inflows, improvements in logistics, and a more skilled labour force. He noted that while recent reforms have begun to address some bottlenecks, further steps are needed to streamline land acquisition, reduce regulatory complexity, and enhance the reliability of power and transport infrastructure.

The economist also pointed to the competitive landscape, observing that India must contend with established manufacturing hubs in East Asia and emerging rivals in Southeast Asia. He suggested that a focus on higher‑value segments, such as advanced electronics, pharmaceuticals, and renewable‑energy equipment, could help differentiate India’s industrial output.

Bajoria cautioned that the pace of growth will depend on the consistency of policy implementation and the ability to sustain investor confidence. He referenced recent data indicating a modest increase in manufacturing’s contribution to GDP, but emphasized that translating this into a long‑term structural shift will require coordinated action across federal and state governments.

The interview concluded with a reminder that demographic advantages—namely a young and expanding workforce—could become a decisive factor if paired with effective vocational training and upskilling programs. Bajoria underscored that aligning education outcomes with industry needs is essential for the sector’s scalability.

Overall, The Diplomat’s coverage reflects a view that India’s manufacturing aspirations are plausible but contingent on addressing deep‑seated structural issues and maintaining a stable policy environment.

Reporting attribution: based on reporting by The Diplomat — original source: https://thediplomat.com/2026/09/rahul-bajoria-bank-of-america-chief-economist-on-indias-manufacturing-ambitions/.