Can every Indian state become an industrial leader without competing against one another?

For decades, India’s industrial development has largely been driven by competition among states to attract investments, industries, and manufacturing projects. While this approach has accelerated economic growth, it has also resulted in duplication of industries, fragmented value chains, and missed opportunities for inter-state collaboration.

What if India’s greatest competitive advantage lies not in every state trying to manufacture everything, but in every state becoming exceptionally good at what it does best?

This question forms the foundation of VP Research Company’s latest flagship publication:

State Cooperative Federalism Project: Industrial Specialisation and Inter-State Complementarity in India

Based on ten years of official Annual Survey of Industries (ASI) data (2013–14 to 2022–23), the report presents one of the most comprehensive evidence-based assessments of India’s manufacturing landscape across all 28 states. Using NIC-2008 three-digit industry classifications and globally recognised analytical frameworks inspired by the European Union’s Smart Specialisation Strategy (S3), OECD regional competitiveness diagnostics, and the World Bank’s competitive development methodologies, the study identifies the industries where each state possesses genuine comparative strengths and examines how these strengths can complement one another to strengthen India’s manufacturing and export competitiveness.

The report goes beyond identifying existing industrial strengths. It proposes practical industrial linkage models, highlights emerging opportunities for every state, identifies areas where states can collaborate rather than duplicate industrial investments, and presents a strategic framework for strengthening cooperative federalism through integrated value chains.

Building on this research, the report explores how India’s industrial strengths can be transformed into globally competitive enterprises capable of driving export-led growth and supporting the vision of Viksit Bharat 2047.

Whether you are a policymaker, industry leader, researcher, investor, academic, or student, this report offers valuable insights into the future of India’s industrial development, manufacturing competitiveness, and export strategy.

Inside the Report

• Industrial specialisation analysis for all 28 Indian states
• State-wise existing and emerging industrial strengths
• Practical industrial linkage models and value chains
• Comparative analysis using ten years of official ASI data
• Strategic recommendations for cooperative federalism
• Four proposed inter-state industrial corridors

India’s journey towards becoming a developed nation by 2047 will depend not only on producing more, but on producing smarter, specialising strategically, collaborating effectively, and building globally competitive Indian enterprises.

Download the complete report to explore how data-driven industrial policy can help shape the next phase of India’s economic transformation.