"India can achieve the 14 per cent growth in manufacturing sector on a sustained basis, if we adopt automation to raise productivity and reduce costs," highlighted Mr Ajay Shankar, Member Secretary, National Manufacturing Competitiveness Council (NMCC), while addressing the CII's International Conference on Cost Effective Manufacturing as part of AUTOMACH 2013, organized by CII in association with ACMA, SIAM and AIA in the capital last week (February 15-17, 2013).

"India can also create 100 million gainful jobs by 2020, if we understand business cycles and innovate. Innovation drives excellence", he added.

While releasing the CII - Avalon Report on "Automation in Manufacturing: Improving Quality & Productivity while sustaining competitiveness", Mr Shankar emphasized that "Adopting automation and cost effectiveness is critical for Indian Manufacturing sector to survive, grow and compete globally. Today, cost effectiveness and the best use of energy is not just an option but a dire need because all markets and economies are open now. Competitiveness along with price and quality are critical for the sustained growth of manufacturing sector", he added.

Mr Shankar further highlighted the fact that the small and medium enterprises have to be oriented towards a low-cost culture. "Then only, we can hope to increase the share of manufacturing to the GDP to 25 per cent", he said. India, he mentioned, should adopt a middle path between the business models followed by Western and East Asian countries. The Western growth model, he said, was cyclical and there could be low and high growth zones. Whereas, the East Asian model of growth aims at high growth, though it may have its own pitfalls. By adopting cost effective methods, India can manage its resources optimally, focus on quality and price and look forward to capturing its legitimate share of global market.

Referring to a recent Perception Analysis of CEOs collated by Deloitte, Mr Ajay Shankar informed that "in terms of manufacturing capacity, India ranked fourth after the USA, Germany and China. India has the capacity to emerge as the second best destination for manufacturing in the world in terms of its resource base, rich pool of talented people and demographic advantage.

"What we need is a political consensus among the government, civil society and industry to strive towards a policy and regulatory regime that is pro-growth and an enabling environment that can attract more investments," he added.

Referring to the low wage - cost regime that India has, in comparison to other major economies, Mr Shankar said that this is an advantage which "we should leverage for proliferating business ventures and attracting more investments." Mr Deep Kapuria, Chairman, AutoMach 2013 shared that "India's target of raising the contribution of manufacturing sector to the GDP to 25% can only be achieved if we adopt automation, innovation, enable R & D linkages, enhance productivity, reduce costs, develop skilled labour and raise quality standards. Automation and job creation go hand in hand. Automation provides the much needed speed, reliability, safety, cost effectiveness and adequate use of energy and scarce resources".

Mr Jayant Davar, Deputy Chairman, CII Northern Region, in his theme address, focused on automation in the manufacturing sector to achieve cost effectiveness. "Along with this, we have to focus on quality, price competitiveness and a clean environment. Automation, other than reducing the drudgery, can reduce emission of pollutants and get India to the desired position manufacturing," he added.

The eminent speakers at the Conference provided innovative and technologically advanced solutions to the industry especially SMES to enhance their productivity leading to industrial growth and sustainability in the ever evolving competitive world. The best practices presentations were made by Maruti Suzuki I Ltd, Yaskawa India P Ltd, Gabriel India Ltd, Kuka Robotics India P Ltd, SAP India, Panasonic India P Ltd, Shriram Pistons & Rings Ltd, etc.