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Why sustainability is imperative for Indian manufacturing sector
Articles- Jan 09,24
India is expected to export goods worth $1 trillion by 2030. With the ever-increasing accolades and stories of success, it becomes imperative for India, its governance, and the organisation's leadership to grow sustainably, writes Sarita Das.
Numbers do tell a story. A story that outlines the presence of the Indian manufacturing sector and its continuous journey to becoming the global manufacturing hub. With industry pandits expecting India to export goods worth $1 trillion by 2030, it is not surprising that manufacturing contributes to 17 per cent of India’s GDP and employs over 27.3 million workers. It is safe to say that these numbers will continue to go up north.
But with the ever-increasing accolades and stories of success, it becomes imperative for a nation, its governance, and the organisation's leadership to grow sustainably. A way that is as disruptive as it is ethical, as scalable as it is carbon neutral. The fact that an enterprise's objectives stay in line with those of the greater good. A notion that can and is transpired into reality through the adoption of sustainability in the Indian manufacturing sector.
When we speak of sustainability, one never implies letting go of the framework that is at play at the heart of an organisation; it simply means being conscious of every process that is directly or indirectly starting a chain reaction of heavy GHG emissions. The very GHG emissions, whose rising numbers are an extreme cause of concern not just for the current inhabitants but also for the future generation who deserve to thrive in a clean and green environment like the one our forefathers and those before them did. A process that underlines the value of the resources the planet has given us and the role of technology in ensuring that we give back more than what we have utilised.
With the ticker of concerns like global warming, rising sea levels, and losing biodiversity appearing in the news hour, the importance of a rising manufacturing presence (India) couldn't have been more accustomed to the present industries' challenges. India, being an up-and-coming poster boy of all good things by its balancing act of technology and efficiency in the process (referring to ISRO's tremendous success in 2023), is being looked upon to set the marker for how to follow a lead by infusing ethical practices that prioritise the environment and those dependent on it. And here's how we as a nation are going about it.
What’s being done?
A bigger goal is achieved through collaborative efforts. In the context of sustainability, it is the governance and organisation running their business in the country. To start with the role of authority, the initiative taken by the current administration focuses on the utilisation of renewable energy. Policy initiatives like the Energy Conservation Act mandate energy efficiency standards for industries across the board; with the National Solar Mission, the government has shifted focus to enterprises with solar energy driving a chunk of their operation; similarly, on the financial front, the govt. provides an easier flow of credit for companies investing in sustainable technologies.
Furthermore, all these initiatives are done irrespective of the scale of the organisation's operations, driving sustainability notions ahead.
While this is the one end of the story, much of the heavy lifting is dependent on how a company makes way for sustainability tactics in its daily operations. Here are a few methods driving the titular change.
- Renewable energy adoption: Backing government policies, industries, irrespective of scale are turning to renewable energy. This counters the carbon emissions metrics and dials down fossil fuel dependency. Setting in motion a future where zero carbon footprint will be a reality.
- Resource efficiency: Upgraded tech platforms like AI and machine learning have prioritised optimisation and efficiency of the resources at work. This includes optimising natural resources like water and its subsequent wastage handling. The 3Rs concept, Reduce, Reuse, and Recycle, has seen its adoption catalyzed by technology's inception.
- Lean manufacturing: With a focus on manufacturing principles like reducing waste, optimising production processes, and minimising inventory, lean manufacturing improves resource efficiency and reduces environmental impact.
- Sustainable supply chains: A backbone to any organisation, a Google search will tell you that the value chain accounts for about 80 per cent of greenhouse gas emissions. To ensure that the said percentage down trades to the vicinity of negligible, companies are now collaborating with their suppliers to ensure ethical sourcing practices and promote sustainability throughout their supply chains. This covers sourcing from environmentally responsible suppliers, minimising transportation emissions, and promoting ethical practices and transparency in sourcing practices.
- Green buildings: A company focuses on how its end users perceive it. After all, a good word of mouth drives a business in the right direction. Keeping the constructive conversation around a brand going, organisations are now adopting green building practices, reducing their facilities' energy utilization and environmental impact. This ranges in the form of designing energy-efficient buildings, utilizing natural daylight and ventilation, and implementing green construction materials.
- Employee onboarding: Every stakeholder must believe in the cause that drives a better tomorrow. With employees being the direct contributors to a company's sustainability initiatives, an organisation should hold training sessions and awareness campaigns to facilitate greener practices amongst its employees. Be it by using collective transportation facilities or participating in green projects.
While the foundation and the resources are in place to make the Indian manufacturing sector more sustainable, its path to future success does find some hurdles in the present. Technology, though confronting the said challenges, is still a work in progress because of its novelty, leaving some room for the desired impact.
The challenges
The ascendancy to the objective is well underway, but here are a few roadblocks for the decision-makers to address.
- Technology adoption irrespective of their scale: Technology's implementation requires a foundation, whether upskilling the employees or upgrading the IT infrastructure. But most importantly, it requires the financial capability to get it to fruition. Because of their relatively low economic prowess, medium- and small-scale enterprises sometimes lack the technological advancement to make their business adept at embracing sustainable operations.
- Upskilling workforce: Taking off from the point mentioned above, software promoting sustainable operations requires workforce training sessions for their potential to be utilized to the fullest. Lack of it will simply mean a bad investment.
- Collaboration: One critical backdrop of traditional methods was the lack of transparency between the multiple stakeholders within an institution. While tech platforms, with their intuitiveness, have bridged the gap, the stakeholders still need to make collaboration amongst other factions of enterprise a priority. Delayed collaboration will drive delayed vital decisions.
- Data handling: If not for the data, then every process will be devoid of its purpose. Handling crucial information through a proper vetting process and accessibility framework gives an organisation critical insight regarding its sustainable operations. With the manufacturing industry involving processes from procurement to the development of the final good, it goes without saying that data is indeed a priority.
Long-term benefit of sustainability
With a timely resolution to the problem statement above, one can safely assume that the path of sustainability in the Indian manufacturing sector will tick off great heights. Companies, too, have now come to understand the long-term benefit of sustainability, not only on the front of revenue generation but also the positive impact it lends to a brand value and the constructive outlook from a user point of view, making association with a brand more in solidarity rather than a one-time instance. Not to forget, all virtues lead to the ultimate objective of making Indian manufacturing sustainable.
About the author:
Sarita Das is the Co-Founder and Director of 3SC Solutions. Hailing from a business family, Sarita Das always had an entrepreneurial streak in her. Before starting 3SC Consulting with her husband Lalit Das, she worked as a human resource professional for several MNCs such as Visteon, Bayer, Nunhems, Zimmer Biomet, and Elekta. With strong conviction and a zeal to succeed, she and her team built a business that has a footprint in India as well as Europe, with a workforce of 250+ professionals.
Sarita Das
3SC Solutions
sustainability
Lean manufacturing
renewable energy
Indian manufacturing sector
machine learning
AI
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