Reforms improved India’s competitiveness, strengthened resilience: CII’s R Mukundan

MUMBAI: A combination of reforms spanning taxation, infrastructure, manufacturing, insolvency and digital public infrastructure has improved India’s competitiveness, lowered logistics and transaction costs and strengthened the economy’s resilience, said CII president R Mukundan.

The impact of these reforms has accumulated over the years, with GST creating a common national market and improving compliance, while the digital public infrastructure built around the Jan Dhan, Aadhaar and Mobile (JAM) trinity brought millions of Indians into the formal financial and economic system, he told ET.

Also read: Insolvency appeals are time-bound, no leeway beyond 45 days: NCLAT


The JAM architecture also created the rails for UPI, which now processes nearly Rs 30 lakh crore a month, he said.

“This resilience that India has demonstrated has been built over years of enabling reforms, supply chain diversification and policy interventions. This is why India’s real GDP grew 7.8% in Q1 FY27, despite a challenging global environment, supply chain disruptions and a crisis in West Asia,” Mukundan said.

The government’s infrastructure push has fundamentally changed the economics of doing business in India, Mukundan said. Highways, dedicated freight corridors, port modernisation and rail electrification have collectively lowered logistics costs and improved supply-chain reliability.

“The Insolvency & Bankruptcy Code (IBC), RERA, labour codes and the numerous sectoral reforms all have helped unlock the growth potential of the Indian economy and enhanced its resilience” he said. “The position India is in today is a result of the combination of multiple reforms, policy interventions and industry initiatives taken over the years.”

The transformation is also visible in manufacturing, with electronics production rising to Rs 13.1 lakh crore in 2025-26 from Rs 1.9 lakh crore in 2014-15. India is now the world’s second-largest mobile phone manufacturer, he added.

Pharmaceuticals, toys and defence have also emerged as examples of growing manufacturing capabilities. India accounts for 20% of global generic drug volumes, while pharmaceutical exports crossed $30.5 billion last year. Toys exports have grown 152%, with Indian toys reaching 153 countries.

Indigenous defence production increased from Rs 46,000 crore in 2014-15 to Rs 1.78 lakh crore in 2025-26, while defence exports grew more than 5,500% over 12 years, Mukundan said.

The next phase of growth, however, will require the baton to pass from public to private investment, he said. Private investment is rising, capacity utilisation is moving towards 80% and employment plans are expanding.

Domestic consumption remains robust, with 61% of businesses in CII’s latest survey expecting demand to rise in the second quarter of 2026-27.

“The task now is to deepen long-term financing, remove regulatory friction that discourages firms from scaling and ensure that growth generates more productive, better-paying jobs,” Mukundan said.

Going forward, he identified semiconductors, renewable energy, data centres and shipbuilding as sectors that could see the next wave of investment and manufacturing growth.

For India to achieve its manufacturing and export ambitions, Mukundan said the country would need greater domestic value-chain depth, moving beyond assembly to components, capital goods and design. He also highlighted trade agreement utilisation, higher private-sector R&D and a stable, predictable policy and tax environment as key requirements.