“Indian Manufacturing: Customer-Centricity for Global Competitiveness”
Much like a lot of Indian things, our manufacturing sector also offers fertile ground to both the pessimists and the optimists.
The Pessimist will look at the sector’s share of only about 3 percent in the global manufacturing output, alarmingly low when compared with other major economies – China (20 percent), Japan (10 percent), and of course, the US (18 percent). And this is when one does not consider the manufacturing output per capita, which will make our position look even bleaker.
In terms of performance, our labor productivity and capital productivity are both low, compared with China and South Korea, for example, whose respective productivity levels, measured in GVA output per full-time-equivalent worker, are four times higher. Sector-wise disparities are even greater – South Korea’s electronics manufacturing sector, for instance, is 18 times more productive than India’s. Even more, Indian manufacturers ostensibly operate well below their maximum capacity, with utilization ranging from 60 to 70 percent across sectors, according to the Reserve Bank of India.
The optimist, on the other hand, will look at the large domestic market, the skilled talent pool, and a government keens on supporting the manufacturing industry through ways of policy, capital, and ease of doing business.
India’s manufacturers – particularly those in the capital- and skill-intensive, mature value chains like the automotive, aerospace, pharmaceutical, capital goods, and machine tools sectors – are keen to become global champions, in parts due to aspiration and a sense of survival.
Iconic brands like Toyota, Apple, and Amazon are exemplars that a good way to move up the global value chain is to approach it with a non-negotiable focus on customer-centricity.
How can our manufacturers do it? As per the sector experts, there are several ways in manufacturers, particularly those in the automotive, pharmaceutical, capital goods, and machine tools sectors, can focus more on customer-centricity, and these include but are not limited to increasing productivity through automation, skill up-gradation, and investing more in research and development.
On 23rd March, Makers & Movers, our fortnightly thought-leadership series will hold a talk on the subject of “Indian Manufacturing: Customer-Centricity for Global Competitiveness” with panelists comprising leaders from different manufacturing verticals B2B machinery companies, and technology solution providers.
Date – 23rd March – Timing – 3.30. to 5 pm
Register Now – https://lnkd.in/gJGvZ-VX
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