A fundamental change to boost manufacturing

• Global manufacturing and trade are moving towards innovation-driven, medium-high- and high-tech products.

• The shift is driven by advanced R&D, technological sophistication, high skills, and a complex supply chain network.

• The US’s high tariffs are likely to redefine the manufacturing sector.

• India has been making consistent efforts since the economic reforms in 1991, using flagship programmes like the National Manufacturing Competitiveness Programme (NMCP) in 2005 and Make in India in 2014.

• In 2023, per capita value added in manufacturing in India was $0.32 K, and productivity stood at $8.9 K, significantly higher than the world average.

• India’s total value added stands at $461 billion, while China is $4,658 billion, and the U.S. is $2,497 billion.

• India needs to raise per capita value addition to expand and focus on enhancing productivity to be competitive.

New Approach to Technical Education

• India needs to institute changes to advance innovation.

• The entrance examination should encourage interest in fundamental knowledge, creativity, and problem-solving skills.

• The focus should be on the application of science and technology in solving industry problems.

• The development of advanced laboratories and workshops, including tool rooms for different manufacturing processes and product design and development, is required.

Building Core Engineering

• Core engineering skills are crucial in civil, mechanical, automobile, production, electrical, electronics, chemical, metallurgy, textiles, and biotechnology.

• The country needs robust engineering units to build equipment and machinery first, followed by technical and management capabilities to develop a variety of products, infrastructure, and transportation systems at a much higher speed for different terrains.

Ecosystem for Innovation

• The success of startups in the country is due to the existing ecosystem, mainly in the service sector.

• An industrial ecosystem needs to be created for manufacturing, which will need more capital and entail a multi-pronged systemic approach.

• To transform manufacturing, the strategy should include developing advanced research labs and building industrial infrastructure.