Manufacturing Trends In India

The Indian manufacturing sector has been growing at an impressive rate, over the past two years. In this context, the initiatives of the Government of India such as “Make in India” and “Atmanirbhar Bharat” are boosting the sector in no uncertain terms. Here it won’t be inappropriate to briefly elaborate on the trends in the manufacturing industry that focus on the above-mentioned growth.

• There is a rapid increase in the number of employment opportunities in the manufacturing sector of the country. It is being projected that approximately 10 crore jobs are going to be available in the industry, by the end of this year.

• A recent survey carried out by FICCI (Federation of Indian Chamber of Commerce and Industry) highlighted a salient point. The manufacturing sector of India utilized almost 70% of its full capacity, in the first half of 2022. This denotes a significant improvement when compared with the corresponding scenario for the initial stages of the pandemic.

• Presently, the contribution of India’s manufacturing industry to the total GDP of the country is more than 14%. When the year 2018 is viewed, the manufacturing sector’s share in GDP was just around 7%. This again emphasizes the striking growth rate of the industry.

• During the first couple of months of 2022, industries like coal, cement, natural gas, and steel recorded a considerable rise in the total quantity produced.

• Many manufacturing companies in India are now shifting away from conventional methods of production and adopting processes powered by the latest technologies. There is a consistent rise in dependence on sophistications like machine learning, artificial intelligence, and data science, in the Indian manufacturing industry.

Several manufacturing units are incorporating data science technology into the machines. Consequently, there shall be a marked increase in the life of the machine. Its maintenance costs are going to be reduced by more than 10 percent, as well.

• The aforesaid technologies have made it simpler for new, small-scale units to commence operations in the market. Small businesses are now enabled to manufacture those products, which only large-scale industries were able to produce until the recent past.

• We have one more trend in the market that is worthy of special mention. Quite a few players from the avenue of technology have now entered the manufacturing sector. Some of these companies are coming up with software solutions to simplify production processes, while others are directly manufacturing new products.

• For any manufacturing plant, the presence of competent workers is as important as having access to technologies. The governments of many states have become aware of this crucial facet. They are striving to provide skilled manpower to the manufacturing sector, through various policies. As a result, factories are having no hassles in recruiting highly proficient laborers.

The combination of technology and capable employees is assisting the manufacturing industry to compensate for losses incurred in the early phase of the pandemic.

• Based on the way things are progressing now, many market experts are making encouraging predictions for the country’s manufacturing segment. Within the next three years, more than 60% of the manufacturing entities operating in India will adopt Industry 4.0 standards. This is going to elevate India as one of the leading economic zones of the world conducive to the growth of the manufacturing industries.