India’s economic aspirations for 2047 depend on the country’s ability to scale its manufacturing engine, deepen financial-sector capacity, and accelerate investment into sunrise sectors, said Department of Financial Services (DFS) Secretary M Nagaraju at the launch of SBI’s Chakra – Centre of Excellence for Sunrise Sectors in Mumbai on Saturday.
Closing the Gap
“Manufacturing is central to India’s transformation. Bridging this gap is essential for job creation, global value chain integration and enhanced self‑reliance,” said Nagaraju, stating that India cannot achieve its long-term aspirations without a decisive manufacturing push.
As the country strives to evolve from a USD 3.7 trillion economy into a USD 30 trillion powerhouse, the ability to expand industrial capacity and generate large-scale employment will determine the pace and inclusiveness of its growth. With the sector contributing just 12–13% of GDP—far below several advanced Asian peers—he stressed that closing this gap is essential not only for job creation but also for deeper global value chain integration and greater strategic resilience. Manufacturing, he stated, is the foundation on which productivity-led, multi-decade growth must be built.
Nagaraju stated that banks are not just channels of capital but strategic actors shaping investment outcomes. “Banks determine which sectors expand, which technologies mature and which enterprises can withstand long gestation cycles,” he said. With gross NPAs at 0.52%, its lowest ever, strong capital buffers, and improved governance, Indian banks are now better positioned to finance long-term, complex projects than at any point in the past decade.
Strategic Lending
Public capital expenditure, rising from Rs 2.6 lakh crore in FY18 to over Rs 11 lakh crore in FY26, has laid the foundation for private investment. Simultaneously, the production-linked incentive (PLI) schemes and the identification of 14 sunrise sectors reflect a deliberate push to build technological depth and domestic manufacturing capability. These include renewable energy, green hydrogen, electric mobility, semiconductors, advanced batteries, data centres, and smart urban infrastructure.
He said the eight sunrise sectors initially covered under Chakra represent a cumulative announced capital expenditure of Rs 131 lakh crore between FY27 and FY31, translating into a project finance opportunity of nearly Rs 32 lakh crore. With India’s green transition alone expected to attract USD 4.1 trillion in investments by 2050, the need for specialised, disciplined financing has never been greater. “Policies may evolve, and structures may adapt, but institutions endure. The true measure of our work lies in whether we leave behind systems that are stronger, smarter and more resilient,” Nagaraju added.