Insights on how India is achieving growth in the production and manufacturing of High-tech and High-demand products
By Kiran Rudrappa
Prime Minister Modi’s catchphrase, “Make in India, Make for the World,” not only sums up India’s efforts to position itself as a hub for exports and manufacturing but also its intention to develop into a sustainable centre of manufacturing that satisfies international standards and eventually leverages its position as the world’s largest economy. Recent findings from a FICCI survey reveal a promising trajectory, with 74% of 380 manufacturers contributing a substantial Rs. 4.8 trillion in sales, showcasing robust capacity utilization and increased investment.
Modern manufacturers have fascinating new opportunities to rethink their operations because of the ongoing infusion of breakthroughs and iterations in the ever-evolving realm of technology. Using a strategic integration of digital capacities with physical manufacturing infrastructure, India is well-positioned to produce smart goods that have the potential to reintegrate into the global industrial arena. With the help of this revolutionary strategy, manufacturers can start manufacturing innovative items in addition to streamlining current processes.
Most importantly, Prime Minister Modi’s “vocal for local” campaign has had an enormous impact on consumer decisions. The Confederation of All India Traders (CAIT) has reported a significant upsurge in the Indian retail markets during the Diwali festive season, which is indicative of the effectiveness of this appeal. Furthermore, preference for products made in the country has supported regional economies and helped to lower imports, demonstrating India’s progress towards manufacturing leadership in the world and self-sufficiency.
Here are a few insights from what is currently happening in the market-
Government Initiatives: The Indian government has implemented myriads of policies to boost manufacturing as part of the “Make in India” campaign. These reforms and policies aim to promote domestic production, simplify corporate procedures, encourage investments, and boost sustainable growth. For instance, India’s commitment to sustainable growth is demonstrated by the Mission on Advanced and High Impact Research (MAHIR) in the power industry, which aligns with the UN’s Sustainable Development Goals and net-zero emission targets.
Electronics Manufacturing: Production of consumer electronics, smartphones, and other electronic components has increased, indicating an apparent emphasis on this industry. For the manufacturing of electronics, the Production-Linked Incentive (PLI) system is essential. In addition to providing domestic manufacturers with a boost and producing national champions with global aspirations, this initiative has successfully attracted international champions. With several endeavours to market electronics manufacturing, India’s electronic manufacturing sector has seen a dramatic transformation in recent years.
Automotive Sector: One of the main forces behind India’s economic expansion and one that plays a significant role in global value chains is the automotive sector. Strong government support has fueled the sector’s expansion and allowed it to forge a distinct niche for itself among India’s manufacturing industries. The nation’s manufacturing of cars stands out among other automobile-producing nations because it is specifically designed to meet the needs of the lower- and middle-class segments of the population. Furthermore, manufacturers are already catching up on renovations, digitization, and automation in order to satisfy future customer expectations (particularly those for electrical vehicles) and maintain an advantage over competitors. The EV market is expected to grow from $5.6 billion in 2023 to $37.7 billion by 2028, accounting for a growth rate of 46%.
Pharmaceuticals Sector: India’s pharmaceutical sector is a major force in the world market. India is the world’s biggest supplier of generic pharmaceuticals and is renowned for its reasonably priced vaccinations and generic medications. According to IBEF, the Indian pharmaceutical sector has grown over the past nine years at a compound annual growth rate (CAGR) of 9.43%, placing it third in the world for pharmaceutical production by volume.
Renewable Energy: India has made investments in the development of technology related to renewable energy. The production of wind turbines, solar panels, and other environmentally friendly technologies has accelerated. According to an E&Y analysis, the 179 GW of installed renewable energy capacity currently in use has approximately USD 240 billion additional investment opportunities in facilities for the production of advanced cells, solar PV, and electrolyzes.
IT and Software: India is still a prominent participant in the IT and software sectors, offering services and solutions for software to customers throughout the world. The export of software has played a significant role in the economic expansion of India.
Research and Development: Innovations in a number of industries have resulted from a greater emphasis on research and development efforts. This covers developments in science and technology that support the creation of high-tech products. Market disruptors have been instrumental in expediting the realization of items in the market by establishing an ecosystem for high-tech products, production, and market access.
Shaping the Manufacturing Landscape!
India is creating a dynamic landscape with its strategic focus on industrial expansion, supported by initiatives like “Make in India” and driven by technological integration. Consumer preferences are being influenced by government policies, most notably the “vocal for local” campaign. Meanwhile, industries such as electronics, automotive, pharmaceuticals, renewable energy, IT, and R&D are showcasing India’s vast manufacturing capabilities. With this diverse strategy, India is positioned for long-term economic growth and worldwide leadership.
(The author is Kiran Rudrappa – CEO & Co-Founder – Posspole, and the views expressed in this article are his own)
