India’s manufacturing sector could be a dark horse catalyzing the country’s ascent to a $5 trillion economy according to expert-insights at CII’s Visionary Leader for Manufacturing (VLFM) Convention and Convocation. Manufacturing is India’s third largest contributor after Services and Agriculture. Currently, the sector contributes nearly 18 percent to the economy and employs over 28 million heads.
● India’s Manufacturing poised to leap-frog to next level
● India’s manufacturing sector to catch-up on missed potential
Experts at the CII’s VLFM elaborated on positive factors such as favourable government policies, rise in investment potential in several sub-sectors, export potential, interest from MSMEs as well as availability of visionary leaders and skilled workforce as reasons for their enthusiasm.
Addressing the 14th VLFM 2023 convention, Jamshyd N Godrej, Chairman, VLFM Governing board & CMD at Godrej & Boyce Mfg Co Ltd explained that the time was ripe for expansion of India’s manufacturing sector. He said, “Manufacturing is crucial for India’s economy. We are a scientific & engineering power-house, we have to spread it across the industry. The focus from policy makers has improved the value chain. Manufacturing has witnessed renewed interest in the form of private capital activity as well as FDI inflows. Moreover, a huge difference can be observed in reduction in poverty rates which in turn makes available a larger pool of skilled people. This definitely augurs well as an opportunity for expansion of industries and enterprises.”
Elaborating on the potential for MSMEs and exporters, he added, “Although previously we were unable to increase the share of manufacturing to the economy, today we have the capability to do just that. The export opportunities today provide a lever for enterprises to achieve scale. Compared to some South East Asian economies, we may have missed on meeting the true potential with our manufacturing. However, there is considerable demand and capability right now to help us catch up. Moreover, there is a competitive advantage to manufacture in India for the world.”
Explaining further, he said, “Additionally the start-up culture and the coming together of innovation and sustainability in the industry has made our manufacturing sector a force to reckon with. Besides, India’s strong aspirational and young demographic, and a vibrant start-up culture too would benefit our manufacturing sector.”
B, Thiagarajan, Managing Director, Blue Star Limited, said, “The CII has been spearheading manufacturing as a cause for ages. With the services sector contributing more, there was a need to kickstart manufacturing. Of late, investments in the manufacturing sector are taking shape, and the sector is contributing immensely to value generation and nation building activities. Some of the technology led initiatives in the manufacturing sector such as digital transformation are enhancing diversity inclusion and thereby serve as a case study for other sectors.
Emphasizing the silver lining for India’s manufacturing sector from exports, Sumit Bhatnagar, Group President, Anand Group outlined opportunities in the manufacturing sector. He said, “The government initiatives such as PLI’s (Production Linked Incentives) would emerge as big game changers for the manufacturing sector. ”
Bhatnagar further added, “The value of India’s exports is considerable and largely from the manufacturing of commodities. But, the value add-on in terms of new products is not too significant. The VLFM program empowers leaders to think radically differently and utilize their creative-hat to solve complex business problems. Visionary leaders in the manufacturing sector could leverage export opportunities and help the sector grow radically in line with India’s economic aspirations.”
