With the festive season to be ushered in shortly, there is much anticipation about what lies ahead for Indian industry and India’s economy. As of now, there are green shots of hope, with economic activity showing signs of picking up in the July-September quarter. As one of the parameters that the economy is slowly getting its mojo back, manufacturing activity has gathered steam and as a result so have goods and service tax collections.
Even consumers are coming out of hiding. As the festive season nears, people are purchasing and it is expected to boost sales of discretionary consumer goods further. Also, Indian manufacturers are taking position to enjoy a seasonal boost leveraging increased demand, increased selling price and introduction of new products.
The Manufacturing industry in India
The manufacturing sector in India is predicted to increase six-fold by 2025 due to rising demand driven by consumer spending and the country’s transition into a low-cost manufacturing hub. Another upside of India’s manufacturing being on the upward trajectory is that there is a ton of pent-up demand for goods and services being generated post-pandemic across the country. Last few years, a pandemic caused a devastating impact on consumer expenditure because of the uncertainty of the economy. However, in this festive season, India can take advantage of this global demand by being a leading exporter of goods and services.
Role of Make in India
India enthusiastically needs to grow its shrunken manufacturing sector to increase its share in GDP and create jobs. India has the capability, inclination towards innovation and the skill sets, to develop state-of-the-art manufacturing facilities in order to deliver the best quality products at competitive prices. The new “Make in India” policy aims at making India self-reliant (Atmanirbhar Bharat) and less dependent on Imports.
The government through this agenda “Make in India” is inviting and enlightening foreign players to partner with India, manufacture with Indian companies and export from India with emphasis on Foreign Direct Investment (FDI) to “First Develop India” the FDI’s recently coined definition. The policy also aims to focus on indigenization, creating more jobs, increasing purchasing power, hence helping the economy to grow.
Automation in Manufacturing
The most significant influence on production is exercised by additive manufacturing, autonomous robots, digital manufacturing, the industrial internet, and agile product development. In the coming years, smart factories, operations may start to be handled with high reliability and little human intervention.
Meanwhile, the trend towards automation is progressing all the time. With the advent of COVID-19 pandemic creating employment concerns amid a changing workforce, the role of automation in manufacturing has taken on new meaning.
Also, manufacturers are increasingly using automation to drive precision, consistency, and greater operational efficiency. From more efficient practices to better building techniques, manufacturing in today’s world has made substantial headway towards safety and sustainability. These modern technological trends enhance the safety and productivity of any manufacturing workforce, but the question has to be asked—how will automation affect displaced workers?
Presently, humans and robotics are working side-by-side to deliver better solutions. However, only time will tell how factory workers adapt to increased automation in the new landscape of manufacturing technologies.
Conclusion
The manufacturing growth witnessed in the past decade has largely been fuelled by the rise in domestic consumption. Also, manufacturing creates strong positive backward and forward linkages in the economy, and creates what’s known as a “multiplier effect”. Growth in manufacturing output necessitates more inputs from sectors such as mining, utilities and services, and creates more jobs and investments in sectors such as logistics, construction and retail.
