Keys to sustaining momentum in Indian manufacturing

This column explains the requisites to enhance the Indian manufacturing capacity

- Prasanth Sakhamuri

Manufacturing has long been a foundational part of the global economy and a leader in technological innovation. In a world dominated by a focus on the fourth Industrial Revolution, and what has been called Industry 4.0, manufacturers have increasingly adopted Robotics, Artificial Intelligence, Machine Learning, and Advanced Analytics.

Developing manufacturing capacity in India

After being announced in October 2020, the ‘Make in India’ program has started to see immediate success in the fields of electronics, defence sub-assemblies, and the manufacturing of intermediaries for pharmaceutical verticals. To sustain this initial success, these sectors have been prioritised as they are responsible for the largest number of imports into the country. The ‘Make in India’ initiative is the start of a whole new programme to develop significant manufacturing capability within the country. The holistic goal is to increase the contribution of the manufacturing sector from 16–17% of GDP to 30–35%.

Policies have been modified to ensure import tariff hikes, like in the case of the solar industry, and in some cases, under a defined PLI scheme, subsidies are being provided to induce manufacturers into the country and make them competitive. Growth of these sectors, with the support of the government, along with the appropriate policy and infrastructure, is required in large doses. Indian manufacturing competitiveness will further improve with trained manpower and with strong policies that will enhance the productivity of the existing workforce.