'Make in India’ has encouraged global automotive companies to expand their footprints in the country and localise manufacturing. Suresh KV says National Investment and Manufacturing Zones are also being established to create an ecosystem for industries in India. The National Manufacturing Policy, which was introduced in 2011 aims to increase the share of manufacturing industry in India’s GDP to 25 per cent and create 100 million jobs by 2021.

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Suresh KV is Country Head of ZF India.Before joining ZF KV has held various positions in his career of over 25 years. His last stint before joining ZF was with Hansen Drives Ltd, where he worked as General Manager, Operations Centre (2007-2010). KV joined ZF as an Executive Director of ZF Wind Power Coimbatore Ltd in 2010 and became Country Head for ZF India in 2015. He has done a post graduate diploma in management from Mumbai’s SP Jain Institute of Management & Research.

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India is one of the fastest growing economies in the world. The Gross Domestic Product (GDP) was $2,597.49 billion in 2017 and the manufacturing sector contributes almost 18 per cent to the total. The Indian manufacturing industry provides employment to almost 24 per cent of the country’s population. According to a report by Indian Brand Equity Foundation (IBEF), the Indian manufacturing sector has the potential to reach $1 trillion by 2025. With the country catching up fast on technology aspect and with the advent of Industry 4.0 there has been a huge shift in the manufacturing processes. Indian manufacturers started making optimum use of the latest technologies like additive manufacturing, robotics and automation to increase the productivity of their outputs whilst significantly cutting costs.

 

The policy regulations introduced by the government of India is also one of the biggest reason for the growth of the manufacturing sector. ‘Make in India’ initiative has had a considerable impact on the industry. It has encouraged global automotive companies to expand their footprints in the country and localise manufacturing. Through the subsidies, Indian companies are also encouraged to increase their production scale. National Investment and Manufacturing Zones are also being developed to create an ecosystem for industries in India. The National Manufacturing Policy, which was introduced in 2011, aims to increase the share of manufacturing industry in India’s GDP to 25 per cent and create 100 million jobs by 2021.

 

Advantages offered by India

Over the years, the ease of doing business has improved significantly. With changes like deregulation of FIPB (Foreign Investment Promotional Boards) and allowance of 100 per cent FDI (Foreign Direct Investment), it has become easier and convenient for foreign players to invest in India. Many states in India like Gujarat, Tamil Nadu and Telangana offer significant policy changes which makes it simpler to procure land, get permits and set up their facilities quicker.

 

In India, labour/workforce is readily available and the nation is a talent pool of engineering competency. Further, through the ‘Skill India’ initiative, people are given proper training in different subsets of manufacturing which is increasing their employability. Through this initiative, it has become possible to harness the best of talent in the country to work for the manufacturing sector. By optimally using the strengths of India’s demography, the country can achieve its full manufacturing potential.

 

The implementation of GST has also been a boon to the manufacturing sector. The removal of excise duty has significantly reduced the tax burden. GST has provided companies with a single point registration and reduced bottleneck checks. In the long run, GST will improve the volume sales as well as profit by reducing the costs of manufacturing and distribution.

 

Digital revolution

The digital revolution too is transforming industrial technology and heralding unimagined possibilities in terms of technological advances. With digitisation coming into play, advanced technology and solutions from all over the globe are available for use. The amalgam of information technology and manufacturing gave birth to Industry 4.0. Industry 4.0 is a buzzword in our industry today because it has brought in various advanced technological solutions for manufacturing. It has brought together robots, data and connected devices for creating a productive environment. It has also streamlined operations and offered new business opportunities. In this competitive market, it is crucial for companies to keep up with the pace of technological advancements and hence Industry 4.0 is very relevant for all companies. It is estimated that 65 per cent of manufacturing companies in India will have high levels of digitalisation by 2020.

 

The implementation of industry 4.0 has helped Indian companies to be at par with global standards. 

Integrating automation and robotics in manufacturing facilities has helped companies in increasing the production output considerably whilst reducing the production cost. It has also helped manufacturing companies in utilising their shop floor space optimally. Automation is also precise and repeatable. It ensures that the product is manufactured with the same conditions and process every time thus resulting in minimal line rejections. Industrial Internet of Things (IIoT) is a core constituent of industrial transformation efforts across the globe. IIoT today is helping organisations to significantly reduce the downtime. In future, IIoT will help companies in identifying new business opportunities whilst simultaneously mapping customer demand trends. IIoT will further help in maximising asset utilisation and enhance product innovation process.

 

Another aspect, which is important for the sector is R&D (Research & Development). Innovation through R&D can be a game changer for companies. Furthermore, the digital era has opened up many aspects of manufacturing R&D for exploration. With artificial intelligence coming into play, manufacturers can work out different permutations and combinations to improve their products and then produce the one that suits them best. With VR (Virtual Reality), it has become possible to understand the products inside out before it is even manufactured. These technologies have allowed companies in analysing their designs before finalising the product and also helped in saving costs of making quality prototypes.

 

The rapid development of India’s infrastructure is also a growth driver for the manufacturing industry. The quality of the infrastructure in a region will be a key factor for investment in that region. With projects like Sagarmala and Bharatmala, the Indian infrastructure is steadily getting a facelift. Faster and easier movement of raw materials will aid in increasing production and maximising output. It will also fasten the distribution process to end customer and reduce the factory to outlet time.

 

Manufacturing sector also contributes significantly to the export market. According to a report by Indian Brand Equity Foundation (IBEF), India’s merchandise exports grew 9.78 per cent year-on-year to $302.84 billion in 2017-18. Merchandise exports recorded a 12.54 per cent YoY growth to reach $164.04 billion during April-September 2018. Owing to advancements in technologies and ease of doing business, Indian companies are today able to comply with global quality standard whilst maintaining cost competiveness. While the manufacturing industry is on a path of advancements, it is also of utmost importance to develop sustainable model of manufacturing practices for the future. With the green mindset becoming increasingly important, it has become imperative for companies to reduce their carbon footprints. Companies can achieve this by optimum utilisation of resources like conserving water through rainwater harvesting, recycling and reusing of materials, and through eco-friendly waste management practices.

 

In conclusion, the Indian manufacturing industry has seen a lot of development over the decades, but it does not stop here. With further technological disruptions like Industry 5.0, newer policy frameworks and increased investments from foreign investors will act like a catalyst in carving out a brighter future for manufacturers in India.