New Delhi, Jan. 29 -- Strengthening manufacturing capacity is essential for achieving long-term currency stability, as export-led industrial growth underpins stronger external balances and exchange-rate credibility, said the Chief Economic Adviser (CEA) V Anantha Nageswaran on Thursday.

CEA noted that currency strength ultimately depends on a country's industrial and manufacturing capacity.

Across successful industrialisers, periods of strong manufacturing-led export growth have historically preceded improvements in current account balances, reserve accumulation, and exchange-rate credibility.

Services exports, while important, play a secondary and complementary role and cannot fully substitute for a strong manufacturing base, the CEA ...