In 2024, the landscape of the Indian manufacturing sector is undergoing a transformative evolution, largely driven by technological advancements. As the sector continues to embrace innovation, the integration of cutting-edge technologies is reshaping traditional processes and driving unprecedented growth. From automation and artificial intelligence to IoT-enabled smart factories, Indian manufacturers are harnessing the power of technology to enhance productivity, efficiency, and competitiveness on a global scale. In this article, we delve into the key technological trends shaping the future of the Indian manufacturing sector and explore the implications of this digital revolution.
Image source: Indian economy
Table of Contents
Indian Economy
India's economy is expected to experience robust GDP growth despite global macroeconomic challenges like the pandemic and conflicts. According to the 27th Annual Global CEO Survey, 86% of Indian CEOs believe the economy will improve within their territory. India has risen to the fifth investment destination for global CEOs, and business leaders are taking steps to remain resilient.
Image Source: https://www.pwc.in/publications/ceo-survey/27th-annual-global-ceo-survey-india-perspective.html
In 2020, the US led with 30%, followed by China (29%), Germany (13%), India, and the UK (9%). By 2023, the US increased its lead to 40%, while China dropped to second place. The US consistently maintains its lead despite fluctuations in other countries' positions.
India's Percentage Change Over Time
Let's compare India's percentage change to that of other countries based on the graph:
India's percentage in 2020 is 9%, and in 2023, the percentage increases to 11%.
In 2020, India ranks fourth among the countries listed. By 2023, India maintains its position but experiences a positive growth in percentage.
Comparison of India's Industrial Production to Other Emerging Economies
India's industrial production has been a significant driver of economic growth. In 2023, India contributed 16% to global growth, making it a key engine for the world economy.
India's fiscal year 2022-2023 saw a 7.2% growth rate, the second-highest among G20 countries, largely due to its stability and structural reforms. India's industrial production increased by 3.8% in December 2023, with the manufacturing sector advancing by 3.9%, marking a significant improvement compared to other developing economies.
India's 2023 G20 presidency showcased its economic strength, diplomatic finesse, rule-based international order, collaboration, and democratic values, making it a stabilising force in global geopolitics and demonstrating its ability to build consensus and address global challenges. India's strategy focuses on inclusive, sustainable growth, digital development, and climate action, aiming to become the world's third-largest economy within five years.
In summary, India's industrial production growth, economic resilience, and active global participation position it as a significant player among emerging economies.
Key Industries Within the Indian Manufacturing Sector
The Indian manufacturing sector is a vital contributor to the country's economic growth. Let's explore some of the key industries within this dynamic sector:
Textiles and Apparel: India's textiles and apparel manufacturing industry, spanning from traditional handwoven fabrics to modern garments, is globally recognised for its quality, diversity, and intricate designs.
Pharmaceuticals: India, a major player in the pharmaceutical industry, produces a significant share of generic drugs globally, known for its cost-effective production and research capabilities.
Chemicals and Petrochemicals: India's chemical industry, encompassing basic, specialty, and petrochemicals, is vital in sectors like agriculture, healthcare, and manufacturing.
Automobiles and Auto Components: India is a major automobile manufacturing hub, producing cars, motorcycles, commercial vehicles, and auto components, with several global manufacturers establishing production facilities in the country.
Electronics and IT Hardware: India's electronics industry is rapidly expanding, producing mobile phones, consumer electronics, and IT hardware, with initiatives like "Make in India" promoting manufacturing within the country.
Consumer Durables: Indian manufacturers manufacture appliances such as refrigerators, washing machines, air conditioners, and televisions, catering to both domestic and international markets.
Steel and Metallurgy: India's steel industry is robust, producing both carbon and alloy steel, which is utilised in construction, infrastructure, and manufacturing.
Cement and Construction Materials: India, being one of the largest cement producers globally, plays a crucial role in infrastructure development.
Food Processing and Beverages: Food processing in India encompasses dairy products, packaged foods, and beverages, largely supported by the country's diverse agricultural base.
Machine Tools and Engineering Goods: The engineering sector is responsible for producing machinery, tools, and equipment, serving various industries such as agriculture, construction, and manufacturing.
The Indian manufacturing sector continues to evolve, driven by innovation, technology, and global competitiveness.
Contribution of the Indian Manufacturing Sector to GDP Growth
The Indian manufacturing sector plays a significant role in the country's economic growth. As of now:
It accounts for approximately 17.4% of India's Gross Domestic Product (GDP). The sector employs around 27.3 million workers. However, India aspires to achieve more. The Prime Minister's vision of "Make in India, Make for the World" aims to increase the share of manufacturing in GDP to 25% by 2025. To achieve this, several initiatives and reforms have been put in place:
Performance-linked Incentives (PLI) Scheme: The PLI scheme has significantly impacted 14 strategic sectors, resulting in a 76% increase in FDI and an anticipated 60 lakh job creation over the next five years.
Industrial Reforms and Policies: Economic reforms like GST, IBC, asset monetisation, labour law, and the National Infrastructure Pipeline are addressing structural deficits and driving growth.
India's Industrial Base: India is a global leader in steel, cement, coal production, railway, road, and automobile industries, with the fourth-largest railway network and second-largest road network.
Value Chains and Opportunities: India can leverage its strengths in raw materials, manufacturing skills, and entrepreneurship to establish eleven manufacturing value chains that can thrive in international markets, leveraging opportunities like export growth and domestic demand.
Focused Approach to Industrial Policy: India's manufacturing value chains are set to grow through reforms aimed at enhancing productivity, securing know-how, and providing capital access, potentially doubling their GDP contribution to $500 billion within seven years.
The Indian manufacturing sector holds immense promise, and strategic efforts can unlock its full potential for economic growth and job creation.
Image source: Labour productivity in manufacturing- Indian context
Small and Medium Enterprises
Let's explore the growth and trends related to small and medium enterprises (SMEs) in India:
SMEs significantly contribute to India's economy, contributing to GDP, employment, and industrial development. They are the backbone of entrepreneurship, innovation, and inclusive growth.
SME classification is based on investment in plant and machinery, with micro-enterprises investing up to ₹1 crore ($119,500), small enterprises between ₹1 and ₹10 crore ($119,500-1,195,000), and medium enterprises between ₹10 and ₹50 crore ($119,500-5,975,000).
Image source: Indian MSME scenario
India registered over 7.87 million MSMEs in March 2022, with micro-enterprises accounting for 95.11%. The North-Eastern region experienced significant growth, with women-led enterprises gaining prominence. SMEs are expanding across sectors, producing diverse products and services for domestic and global markets.
Challenges include access to finance, skilled workforce, technology adoption, and regulatory compliance, while opportunities include digital platforms, sustainable practices, and exploring export markets.
The Indian government has implemented initiatives like Make in India, Atmanirbhar Bharat, and Production-Linked Incentives (PLI) to boost SME growth, focusing on business ease, innovation, and competitiveness.
SMEs are predicted to drive economic growth and job creation, requiring a focus on technology, upskilling, and sustainable practices for their success.
Influence of Technology Adoption in Indian Manufacturing
Technology adoption has significantly impacted the Indian manufacturing sector, driving growth, efficiency, and global competitiveness. Let's explore how technology adoption has influenced Indian manufacturing:
Industry 4.0 Adoption: Industry 4.0 is the integration of digital technologies into manufacturing processes, with India focusing on mature digitalisation by 2025. Key areas include IoT, AI/ML, IT-OT integration, robotics, and human-machine interfaces. Investments in Industry 4.0 are expected to reach over $200 billion by 2025, aiming to create globally connected smart factories and help India achieve its national growth target of $1.1 trillion by FY26.
Image source: Industry 4.0
Digitalisation and Efficiency: Digital technologies enhance manufacturing efficiency by streamlining processes, reducing waste, and enhancing productivity. Automation, predictive maintenance, and real-time data analytics optimise production lines, while supply chain management improves visibility and coordination.
E-commerce and Internet Access: The growth of e-commerce in India has been accelerated by improved internet access, enhancing financial inclusion, and allowing businesses to reach a wider customer base.
Green and Clean Technologies: The Indian manufacturing sector is embracing green and clean technologies, aiming for cost-efficient implementation by OEMs and brands to enhance sustainability, reduce environmental impact, and align with global trends.
Digital Payments and Financial Inclusion: India is a global leader in digital payments, with the Unified Payments Interface (UPI) being a key component of its financial technology innovations.
Tech Landscape and Revenue Growth: India's technology industry revenue is projected to reach $254 billion, driven by factors such as digital transformation, cloud adoption, and IT infrastructure.
In summary, technology adoption has transformed Indian manufacturing, making it more efficient, globally competitive, and aligned with sustainable practices. The journey toward Industry 4.0 continues, promising exciting advancements for the sector.
Preparing the Workforce for Automation
Upskilling and reskilling the current workforce is essential to fully utilise the potential of automation in the Indian manufacturing sector. Let's explore how we can prepare the workforce for this transformation:
Skills Gap and Automation: The Indian workforce is set to undergo a significant reskilling and upskilling process due to the adoption of automation and AI, which is expected to generate 4.7 million new tech jobs.
Image source: Skills Gap and Automation
Manufacturing Disruption: Automation is expected to cause significant disruption in the manufacturing sector, with 23% of the workforce primed for skill augmentation, impacting sectors like agriculture, wholesale trade, transportation, and construction.
Digital Literacy and Infrastructure: Digital literacy is crucial for workers to adapt to technology-aided roles, and robust cloud adoption can enable remote work and collaboration. Technologies like Building Information Modelling and generative design enhance efficiency and productivity.
Reskilling Opportunities: BIM facilitates real-time collaboration in architecture, construction, and engineering teams, utilising machine learning and AI for efficient project management, with workers transitioning with proper training and support.
Deep Sea Fishery Workers Example: India's deep sea fishery workers possess transferable skills, with 64% of the required skills for help desk support agents using the ServiceNow platform, providing opportunities for career growth in regions with high fisheries concentrations.
In summary, a concerted effort to upskill and reskill the workforce, along with embracing technology, will ensure that the Indian manufacturing sector thrives in an automated environment.
Automation by Small and Medium-Sized Enterprises (SMEs)
Let's explore the impact of automation on small and medium-sized enterprises (SMEs) in the Indian manufacturing sector:
Automation Revolution for SMEs: SMEs are crucial for India's economy, generating jobs, fostering innovation, and driving growth. Historically, they have utilised manual methods, but the advent of AI and automation is revolutionising their operations.
AI's Role in Reshaping MSMEs: Automation is not just about machines taking over mundane tasks; it's a strategic game-changer. AI-powered tools like chatbots, predictive analytics, and automated CRM systems enhance operational efficiency and create personalised customer experiences, replacing manual labour in tasks like data entry, inventory management, and customer support.
Strategic Vision with AI Insights: AI-driven insights enable MSMEs to make informed decisions, forecast market trends, and compete globally. This data deciphering and actionable strategies level the playing field, enabling them to compete with global giants.
Challenges and Opportunities: AI-driven automation offers opportunities for MSMEs to enhance decision-making, improve efficiency, and drive growth, but challenges include limited resources, lack of expertise, and technology access.
Industrial Automation in India: India's SMEs are experiencing low industrial automation levels compared to other countries, necessitating industries like electronics, textiles, pharmaceuticals, automobiles, and food to adopt automation.
In summary, automation is reshaping the Indian SME landscape, empowering these enterprises to thrive in a dynamic business environment.
Role of AI in Small Business Automation
Let's explore the impact of Artificial Intelligence (AI) on small and medium-sized enterprises (SMEs) in the Indian manufacturing sector:
Competitive Advantage: AI can significantly boost Indian SMEs' competitiveness by improving products, services, and customer engagement, thereby enhancing overall business performance thereby enabling them to compete against larger corporations and international counterparts.
Quick Win Applications of AI: SMEs can utilise AI tools for customer service, sales, and marketing insights. These tools can analyse customer interactions, provide personalised strategies, and analyse sales data. AI-driven data analytics can enhance product offerings, pricing strategies, and market positioning. Additionally, AI can automate processes, reduce errors, and optimise supply chains, enhancing productivity and efficiency in SMEs.
Image source: Applications of AI
Drivers and Barriers to Adoption: SMEs adopt AI for competitive advantage, overcoming metic pressure and perceived usefulness. However, barriers include management support, complexity and compatibility, and compatibility issues with customer IT systems, particularly in B2B sectors. AI enhances productivity, profitability, and customer service but requires financial and non-financial resources.
Future Outlook: SMEs can start with AI applications in customer service and sales, gradually expanding to more sophisticated insights. This approach ensures resilience, transparency, and sustainability, preparing them for future growth and ensuring relevance in a competitive market.
In summary, AI adoption empowers Indian SMEs, enabling them to thrive in a dynamic business environment. By strategically integrating AI, SMEs can unlock growth opportunities and stay ahead in the digital era.
Factors that Influence Industrial Production in India
The factors influencing industrial production in India are multifaceted and play a crucial role in shaping the country's economic landscape. Let's delve into some of these key factors:
E-commerce Boom: The rapid growth of e-commerce platforms has significantly impacted industrial production, driving increased online shopping and demand across sectors, facilitating efficient distribution channels and connecting manufacturers with consumers.
Growing Middle-Class Population: India's growing middle class has led to a surge in consumer goods demand, prompting industries to boost production to meet these demands.
Improved Infrastructure: Government initiatives to enhance logistics infrastructure, such as highways, ports, and railways, have significantly boosted industrial production by enhancing transportation efficiency and facilitating smoother goods movement.
Technological Advancements: The integration of advanced technologies, automation, and digitisation has significantly improved production efficiency, boosting industries' productivity and competitiveness.
Government Initiatives: Policies like "Make in India" and manufacturing incentives have boosted industrial growth, while tax reforms, business ease, and investment-friendly policies have attracted both domestic and foreign investors.
Urbanisation: Urban areas, characterised by high population density, improved infrastructure, and market access, are driving industrialisation and serving as manufacturing, service, and skilled labour hubs.
Image source: Urbanization
Increased Consumer Awareness: Consumers are becoming more informed about product quality, safety, and environmental impact, prompting industries to adapt and comply with regulations.
India's industrial production is influenced by market dynamics, government policies, technological advancements, and consumer behaviour, with a robust capital goods industry laying the groundwork for sustainable and productive industrialisation.
Challenges Faced by SMEs During Automation Implementation
Implementing automation in small and medium-sized enterprises (SMEs) within the Indian manufacturing sector comes with its share of challenges. Let's explore these challenges:
SMEs face financial constraints and expertise gaps in automation due to a lack of capital, which often requires significant upfront investments in hardware, software, and training. They may struggle to design, implement, and maintain automated systems. To overcome these challenges, SMEs must access suitable automation tools and platforms tailored to their specific needs.
Image source: Automation in SMEs
The automation journey in SMEs requires clear roadmaps and guidance to ensure progress. Organisational resistance to change can hinder automation, as employees may fear job displacement or struggle with adapting to new processes. Balancing standardisation with flexibility is crucial for SMEs to maintain competitiveness and avoid job displacement.
SMEs must ensure automation doesn't compromise efficiency and quality while maintaining product quality. End-to-end automation in the supply chain requires collaboration between SMEs, suppliers, logistics partners, and distributors. Upskilling employees is crucial for implementing and managing automated systems. Customisation challenges arise when handling customised orders and small batch sizes, necessitating efficient handling by automation systems.
Governments, financial institutions, and industry associations are essential in supporting SMEs in their strategic automation journey despite the significant benefits of automation.
Examples of AI Implementation in Small Businesses
Let's explore some real-world examples of how Artificial Intelligence (AI) is being implemented in small businesses within the Indian context:
Sales Process Automation: AI-powered chatbots and virtual assistants are revolutionising customer interactions by automating responses and handling inquiries, thereby enhancing engagement and response times.
Video Analytics for Retail: Bata, a footwear retail company, has implemented an AI-based video analytics solution to improve in-store sales, operational efficiency, and customer satisfaction by tracking foot traffic and customer behaviour.
Predictive Analytics for Inventory Management: AI algorithms can help SMEs predict demand, optimise inventory, and analyse historical data, thereby reducing excess stock and enhancing supply chain efficiency.
Personalised Marketing Campaigns: AI can assist SMEs in developing targeted marketing strategies, suggesting personalised products, and enhancing customer loyalty by analysing customer preferences, behaviour, and demographics.
Image source: Marketing
Quality Control and Defect Detection: AI-driven image recognition and machine vision systems can assist SMEs in identifying manufacturing defects, thereby enhancing product quality, minimising waste, and ensuring consistency.
Fraud Detection and Cybersecurity: AI algorithms detect financial transaction anomalies, protect SMEs from fraudulent activities, and implement AI-based security measures to safeguard sensitive data and prevent cyber threats.
Supply Chain Optimization: AI improves supply chain logistics, route planning, and inventory management, benefiting SMEs by reducing transportation costs, enhancing delivery times, and enhancing overall efficiency.
Human Resources and Talent Acquisition: AI is revolutionising recruitment by analysing resumes, screening candidates, and matching them to job profiles, saving time and resources for SMEs.
Energy Efficiency and Sustainability: AI technology aids SMEs in monitoring energy consumption, identifying waste, and suggesting energy-saving measures, thereby reducing operational costs and promoting environmental sustainability.
Customer Sentiment Analysis: AI uses customer reviews, social media posts, and feedback to provide SMEs with valuable insights into customer satisfaction, enabling them to identify areas for improvement and adjust their services accordingly.
AI adoption in India's small businesses, spanning sales, marketing, operations, and cybersecurity, can boost productivity, competitiveness, and customer experiences by strategically leveraging technology.
Employee Concerns During Automation Implementation in SMEs
The implementation of automation in small and medium-sized enterprises (SMEs) within the Indian manufacturing sector can be both transformational and challenging.
Automation can lead to job losses, causing employees to worry about job security and potential resistance to machine replacement. Upskilling and adapting to new technologies is crucial, and change management aims to address employee resistance and ensure they can effectively adapt to new processes, tools, and workflows. Automation can enhance productivity but may cause employees to feel overwhelmed. Clear communication about expectations and workload distribution is crucial. Automation can alter work environments, raise ergonomic, repetitive strain, and health concerns, and raise data privacy concerns.
Image source: Employee health
Employees seek transparency and understanding about automation plans to alleviate fears and uncertainties. They are actively seeking career advancement and believe automation should foster growth rather than stagnation. However, concerns about human interaction and teamwork arise. It's crucial to align automated tasks with employees' sense of purpose.
In summary, addressing these concerns through effective communication, training, and a supportive work environment is crucial for successful automation implementation in SMEs.
Implementing AI in SMEs and Common Pitfalls to Avoid
Implementing Artificial Intelligence (AI) in small and medium-sized enterprises (SMEs) within the Indian manufacturing sector is a transformative step.
AI can improve SMEs' operational efficiency by automating repetitive tasks, preventing equipment breakdowns, and reducing downtime. AI-driven image recognition and machine vision systems aid in quality control, ensuring product consistency and reducing waste. AI also improves supply chain logistics, route planning, and inventory management, reducing transportation costs and improving delivery times and overall efficiency.
AI algorithms predict demand patterns, optimise inventory levels, and minimise shortages in SMEs. They also enhance customer engagement and loyalty by analysing customer data and creating personalised marketing campaigns. AI also improves energy efficiency and sustainability by monitoring consumption, identifying waste, and suggesting energy-saving measures, reducing operational costs and contributing to environmental sustainability.
AI is revolutionising recruitment processes by analysing resumes and matching candidates, saving time and resources for SMEs in the human resources and talent acquisition sector. AI algorithms also aid in fraud detection and cybersecurity, safeguarding sensitive data. SMEs can enhance AI adoption through joint ventures and partnerships with tech companies and startups and invest in upskilling programs to bridge the skills gap.
AI adoption in Indian SMEs is crucial for their growth and competitiveness in the global market, allowing them to thrive in a dynamic business environment.
Common Pitfalls to Avoid
When implementing Artificial Intelligence (AI) in small and medium-sized enterprises (SMEs) within the Indian manufacturing sector, it's essential to be aware of potential pitfalls. Let's explore common challenges and how to avoid them:
Lack of Clear Strategy and Vision: Implementing AI without a clear strategy can lead to scattered efforts and suboptimal results. To avoid this, understand business goals and create a clear roadmap for AI adoption.
Underestimating Data Preparation: Investing in data cleaning, normalisation, and feature engineering is crucial for accurate AI models, as neglecting these aspects can hinder their effectiveness.
Image source: Data Preparation
Overlooking Change Management: To counteract potential resistance to AI, it's crucial to involve employees early, offer training, and ensure transparent communication of AI benefits.
Vendor Lock-In and Scalability Issues: Relying on a single AI vendor can limit flexibility and scalability. Instead, opt for open-source or modular solutions and plan for scalability as your AI needs to grow.
Ignoring Ethical Considerations: AI decisions can have ethical implications, including bias, privacy, and fairness. To address this, it's crucial to establish ethical guidelines, audit AI models, and ensure transparency.
Overlooking Regulatory Compliance: AI implementations must adhere to legal and industry regulations, which can be mitigated by staying informed about data protection laws, security standards, and compliance requirements.
Not Monitoring Model Performance: The issue of failing to monitor AI models can lead to performance degradation over time, suggesting the need for continuous monitoring, model accuracy tracking, and retraining.
High Expectations and Unrealistic ROI: The main issue is that expecting immediate AI benefits can lead to disappointment, so it's crucial to set realistic expectations, objectively measure ROI, and prioritise long-term benefits.
Underinvesting in Talent and Skills: The issue of a lack of skilled AI professionals can hinder successful implementation, suggesting the need for investment in training and upskilling of existing employees.
Not Leveraging Existing Data and Expertise: The solution is to utilise existing expertise, collaborate with experts, and utilise historical data to avoid ignoring domain knowledge and wasteful practices.
Successful implementation of AI in SMEs requires a thoughtful approach, employee engagement, and a commitment to ethical and transparent practices.
Challenges Associated with Adopting AI for SMEs
The adoption of Artificial Intelligence (AI) in small and medium-sized enterprises (SMEs) within the Indian manufacturing sector faces several challenges. Let's delve into these impediments and explore potential solutions:
Data Security and Privacy Issues: AI solutions in India face challenges due to the processing of confidential data, including sensitive and personal information. To address this, initiatives like the Personal Data Protection Bill and the National Cyber Security Strategy are being implemented, emphasising the importance of robust data security and privacy frameworks.
Limited AI Expertise and Investment Constraints: AI requires skilled professionals, but a limited talent pool hinders effective implementation. NASSCOM's FutureSkills Prime initiative aims to bridge skill gaps and address high implementation costs through strategic investments.
Infrastructure Gaps in AI and Cloud Computing: India needs specialised computing and storage facilities to support AI, as AI thrives on data, and cloud computing provides the necessary infrastructure. Focusing on these resources will accelerate AI adoption.
Image source: Infrastructure Gaps in AI and Cloud Computing
Lack of Value Creation and Skill Mismatch: SMEs face challenges in generating value from AI implementations, which can be addressed by addressing skill gaps through upskilling and reskilling programs.
Capacity Issues and Access to Technologies: The challenge lies in the limited professional capacity to manage AI projects, which can be addressed by fostering collaboration, knowledge sharing, and access to AI technologies.
India is addressing challenges in the manufacturing sector by promoting AI expertise, improving infrastructure, and ensuring data security for SMEs to harness its transformative power.
Examples of Successful High-Value Manufacturing in India
India has witnessed successful high-value manufacturing across various sectors. Here are some notable examples:
Tata Motors Ltd: Established in 1945, Tata Motors is a prominent automobile manufacturer that produces a diverse range of vehicles, including passenger cars, commercial vehicles, and electric vehicles.
Tata Steel Limited: Tata Steel, founded in 1907 by Jamsetji Tata, is a global steel company specialising in producing high-quality steel products for automotive, construction, and infrastructure industries.
Hindalco Industries Ltd: Hindalco is a leading player in the aluminium industry, specialising in producing aluminium and copper products for sectors such as aerospace, automotive, and packaging.
Mahindra & Mahindra Ltd: Mahindra & Mahindra is a prominent manufacturer of tractors, utility vehicles, and commercial vehicles, with a significant presence in the agricultural and automotive sectors.
Maruti Suzuki India Ltd: Maruti Suzuki, India's largest car manufacturer, dominates the Indian automotive market by producing a diverse range of passenger cars.
Larsen & Toubro Ltd (L&T): L&T is a global engineering conglomerate that specialises in heavy engineering, construction, and infrastructure projects.
Reliance Industries Ltd (RIL): Reliance Industries, led by Mukesh Ambani, is a prominent Indian conglomerate specialising in petrochemicals, refining, and telecommunications.
Adani Group: Adani Group, a global conglomerate specialising in energy, infrastructure, and logistics, has successfully expanded its operations both domestically and internationally.
Kama Ayurveda: Kama Ayurveda is an Indian brand known for its traditional formulations and sustainable practices in its natural and Ayurvedic skincare products.
The Maeva Store: Maeva Store is a startup that focuses on selling eco-friendly and wellness-oriented products, specifically soy wax and essential oil candles.
India's pharmaceutical, textile, and electronics manufacturing sectors have achieved significant success, leveraging its skilled workforce, raw materials, and entrepreneurial spirit for high-value manufacturing opportunities.
Role of Government Policies and Initiatives in the Indian Manufacturing Sector
The Indian government has implemented several policies and initiatives to boost the manufacturing sector. These measures aim to enhance competitiveness, attract investments, and promote sustainable growth. Here are some key government actions:
Make in India Initiative: The 2014 initiative aims to make India a global manufacturing hub by simplifying procedures, improving business ease, and providing incentives to both domestic and foreign companies.
Goods and Services Tax (GST): The 2017 GST implementation unified manufacturers' tax structure by replacing multiple indirect taxes with a single tax system, thereby reducing compliance burdens.
Production-Linked Incentive (PLI) Schemes: PLI schemes, introduced across various sectors, offer financial incentives to manufacturers, thereby boosting production, job creation, and exports.
Image source: PLI schemes
Atmanirbhar Bharat Abhiyan (Self-Reliant India Campaign): During the COVID-19 pandemic, an initiative was initiated to boost domestic manufacturing, focusing on local production, supply chain resilience, and reducing import dependence.
National Infrastructure Pipeline (NIP): During the COVID-19 pandemic, an initiative was initiated to boost domestic manufacturing, focusing on local production, supply chain resilience, and reducing import dependence.
Skill India: Skill development programs are essential for enhancing workforce employability, as skilled workers are vital for the competitive manufacturing sector.
Ease of Doing Business Reforms: The government has implemented reforms to streamline business processes, reduce bureaucracy, and improve the investment climate, including the National Single Window System (NSWS).
Research and Development (R&D) Incentives: The government encourages R&D investments through tax incentives and grants, which in turn boosts innovation and technological advancements in manufacturing.
National Manufacturing Policy (NMP): The National Manufacturing Policy (NMP) aims to enhance manufacturing's GDP share through sustainable growth, employment generation, and sector-specific policies.
Investment Promotion Agencies: Invest India is an organisation that facilitates and supports investments in the manufacturing sector by providing information, facilitating approvals, and assisting investors.
Government policies and initiatives significantly influence the Indian manufacturing sector, aiming to accelerate growth, create jobs, and improve competitiveness by creating an enabling environment.
In summary, government policies and initiatives play a crucial role in shaping the manufacturing landscape, fostering innovation, and driving economic growth in both Slovenia and India.
Indian Government Support for Small and Medium Enterprises in the Manufacturing Sector
The Indian government has introduced several initiatives to support small and medium enterprises (SMEs) in the manufacturing sector. These measures aim to enhance competitiveness, encourage innovation, and promote sustainable growth. Here are some key initiatives:
The Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE) provides first-generation entrepreneurs with collateral-free loans with up to 75% guarantee cover, providing over ₹1 lakh crore ($119.85 billion) in FY 2022-23, compared to ₹56,172 crores ($6.71 billion) in FY 2021-22.
GeM, launched in 2016, is a digital public procurement platform encouraging government ministries, departments, and CPSEs to procure goods and services digitally. It mandates 25% of annual procurement from micro and small enterprises, including 4% from SC/STs and 3% from women entrepreneurs.
Image source: Registered MSMEs in India (FY22)
The 2016 ZED Certification Scheme aims to boost Indian MSMEs' competitiveness in the manufacturing sector by promoting awareness, assessment, and quality improvement in manufacturing practices.
The government is prioritising skill development and training for SMEs through Entrepreneurship and Skill Development Programmes (ESDP), aiming to enhance their employability.
The scheme offers financial support to MSMEs pursuing ZED certification, a quality standard requiring continuous improvement and adherence to quality standards.
In summary, these government initiatives aim to empower SMEs, promote sustainable practices, and drive economic growth in the manufacturing sector.
In summary, government policies and initiatives play a crucial role in shaping the manufacturing landscape, fostering innovation, and driving economic growth in both Slovenia and India.
Conclusion
The integration of virtual worlds and Generative AI in manufacturing processes is set to revolutionise the industry, unlocking new insights and potential for organisations. The grounding forces for this approach include empowering developers, defending reality, and prioritising technical wellness, thereby fostering innovation and efficiency in software development.
India's technology landscape is characterised by innovation, reshaping industries and norms, with trends pulsating from Mumbai's tech corridors to Bengaluru's tech corridors. India's $5 trillion economy by 2026-27 requires a shift in manufacturing, with sectors like automotive, FMCG, chemicals, and semiconductors requiring strategic attention for progress.
In summary, the Indian manufacturing sector is poised for transformative growth fueled by technology adoption, sustainability, and innovation. Many experts point out that India has missed the manufacturing era… yet if we move with the times, there are many hidden and pre-emptive opportunities that can be unearthed.
