Indian Manufacturing Industry: Is it going to Create an Easy RoadMap?

Indian Manufacturing Industry

The World Economic Forum (WEF) report has been generated in collaboration with A T Kearney and the need of the hour to accelerate transformation in the public-private collaboration for new and innovative approaches call. According to the WEF India ranked at 30th position in a global manufacturing index achieved over other BRICS companions, Brazil, Russia and South Africa, but below China who holds the 25th spot.

The Global Manufacturing Index released on Sunday, on the basis of developing the best structure of production, Japan ranks at 1st position in its “Readiness for the future of production report”, other remaining countries in the top 10 are South Korea, Germany, Switzerland, China, Czech Republic, the US, Sweden, Austria and Ireland. BRICS nations Russia gained 35th position, Brazil 41st and South Africa at 45th.

WEF ranks India 30th on global manufacturing index read the full article here.

According to the report, the top 100 countries categorised into four groups – Leading (strong current base, high level of readiness for future); High Potential (limited current base, high potential for future); Legacy (strong current base, at risk for future); or Nascent (limited current base, low level of readiness for future). The report outlines the modern industrial developmental strategies and promotes collaborative action. India, Hungary, Mexico, Philippines, Russia, Thailand and Turkey grouped in the ‘Legacy’. While China among in ‘leading countries’ group and Brazil and South Africa assorted in ‘nascent’ group.

Key Challenges for Manufacturing Industry in India:

India the 5th largest manufacturer in the world with total manufacturing of 2016 over USD 420 billion value. “Country’s manufacturing sector has grown by over 7 per cent per year on average in the past three decades and accounts for 16-20 per cent of India’s GDP” – said WEF.

Achieving the 5th position in the world manufacturer still, there are lots of skills, technology, regulatory of laws in which the country lag behind. The country requires a lot of development to maintain the position and perform better than any other leading countries. Let’s know what the important criteria are where India needs to perform better to reach out from the legacy group to leading one.

  • Skills: The labour of India is considered as fourth class labour by society, the tend needs to change according to the advancement of technology. Where the world is solving the issues related the technology, we were stuck in solving the issue of the tendency of labour and yet fighting for the rights of labour. Labour also requires change according to the advancement of technology.

Where we are lacking is the high level of technology skilled labour, this is because in a country like India we do not provide proper training to our labour, related to the technology, according to time to time. In other countries where 3D training is in demand nowadays, there we are not providing basic proper training to the workers.

The government should arrange and create laws for labours benefit and as well for the betterment of the country are:

  • basic training programmes
  • training according to technology, timely basis
  • High level of training programmes after the basic one
  • Labour shouldn’t be treated as fourth class labour
  • proper rules and arrangements for training


  • A culture without discrimination over gender: In India, it is more important to evaluate a person with his work and ability to work rather than over gender. Women participation in the labour force is relatively low in comparison to other countries and somewhere there’s no participation at all by women. Women are judged according to the capability of their physical strength rather than her working ability according to work. The other major concern in the industry is the safety of women, one of the major reasons behind the women who are not interested in the field. The Indian social norms that set aside women from working.

How the government should create and spread awareness in women:

  • a better working culture for women in any field in which she is interested
  • a better peer culture of working
  • safety norms well prepared and implementation
  • working choice according to working ability
  • proper training and awareness programmes for them


  • Trade Tariffs: Trade tariffs in the Indian manufacturing industry have always been muddled somehow. The Make in India initiative is not a big success in the country yet. The main reason behind that has been the government, which has not made up its mind to adopt the manufacturing policy. The foremost aim of the manufacturing policy is to create many jobs and to become a global manufacturing powerhouse.

The government should set his goal first regarding the need of the manufacturers in the industry like small and medium scale, where labour applied more and create new jobs in the industry; the tariff might help to serve the purpose. Equally, should focus on the high-quality export goods to the world to become a smart manufacturing hub.

The government should focus on:

  • to improve the working competitiveness in the factories
  • better reforms in tariffs of import and export of manufacturing
  • fixing problems regarding land acquisition, infrastructure, and labour, etc
  • providing rapid advances in technologies, like artificial intelligence, automation, machine learning, robotics, digitization and other skills use. 

“Home to the second-largest population in the world and one of the fastest growing economies, the demand for Indian manufactured products is rising. India has room for improvement across the drivers of production, except for demand environment where is ranks in the top 5,” said WEF.


  • Regulatory Efficiencies: In other countries, they are very strict in case of emission, sustainable resources and regulatory of laws. But in India, there is no such rules-abiding the systematic work in the manufacturing industry. The government has to make systematic and strict laws to work properly with the regularity. The government should manage the carbon footprints by setting it to a limit mark, and none of the industry is likely to disrupt the mark in any way and strict penalty in case if done.

In a country like India, where solar energy, wind energy and various other natural resources are easily available, so the government should limit the use of diesel and petrol to help the environment. Many countries already started taking major steps toward sustainability and green growth by ensuring their development is environmentally and economically sustainable. They improved the environment and with it also improved profit-making and competitiveness. India should also focus on sustainability.

We published Manufacturing Industry B2B Analytics research last year to read the B2B Analytics research on Discrete Manufacturing Industry: B2B Analytics & its Scope in Industry.

Overall, India attains a good position in comparison to its neighbouring countries, such as Sri Lanka, Pakistan and Bangladesh and the countries placed below India includes Turkey, Canada, Indonesia, New Zealand, Australia, Hong Kong, Mauritius and the UAE. The countries placed better than India are Singapore, Thailand, the UK, Italy, France, Malaysia, Mexico, Romania, Israel, the Netherlands, Denmark, the Philippines and Spain.

For customized market research reports for any kind of startups and business in any industry, you can contact Craft Driven Market Research team here directly.

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