Manubhai Shah was a Member of Second and Third
Lok Sabha from 1957 to 1967 representing Madhya Saurashtra Parliamentary Constituency of erstwhile Bombay State and
Jamnagar Parliamentary Constituency of Gujarat. He was also a Member of
Rajya Sabha during 1956-57 and from 1970 to 1976. During his tenure, he held various portfolios as Union Minister including Industries, International Trade and Commerce. Shah was instrumental in the setting up of nearly 400 industrial estates in the country.
Gunnar Myrdal, who went on to win the 1974 Nobel Prize in Economics, quoted Shah as saying "The policy has always been pragmatic ... [as] the prime consideration has always been rapid growth rather than doctrinaire division of spheres. There is so much to be done that whoever can do it always gets encouragement". Myrdal alaos quoted Shah as saying "Long run growth of income will proceed fastest if instead of trying to do everything at the same time, we concentrate initially on basic and heavy industry". Shah differed with his ministerial colleagues if he felt it necessary. On one occasion when he was Foreign Minister he had a disagreement with the Commerce Minister on Industrial Licensing Policy, but there was also respect for one another and the matter was resolved with Prime Minister Nehru. Another time, when Shah opposed the move on devaluation of the rupee, there were differences with the Finance Minister that caused Shah to temporarily resign his portfolio as Industry Minister. The Maruti small car project was his brainchild. His most notable pioneering initiative was the setting up of the Small Industries Development Organisations and the Small Industries Service Institutes (SISI) which he was determined to create in every State and District of the country (which are now also known as Micro, Small and Medium Enterprises & Development Institutes (MSME-DI)). The first prototypes of these he had already set up as a Minister in the Saurashtra government, such as in Bhavnagar and Rajkot, where facilities were provided for starting up small units, procuring loans, providing technical and product advice, skills training, exhibiting and selling of produce through creation of emporiums, bringing together interested potential small entrepreneurs and organising seminars, and even setting up of industrial townships, such as the Bhavnagar Small Industries Association and the Rajkot Bhaktinagar Udyognagar which became forerunners to the SISIs and the Industrial Estates Shah helped set up across the country when he became Union Minister for Industries. As such these ideas of economic and industrial development were already conceived by Shah when he was in Ferozepur jail. Among the institutions that Shah was instrumental in creating are the Gujarat Industrial Development Corporation,
M P Shah Medical College Jamnagar, Akhil Bharat Gujarati Samaj,
Triveni Kala Sangam,
Sardar Patel Vidyalaya School. ==Expanding the trade sector==