How can Indian companies strengthen their manufacturing potential?
Post-pandemic, the manufacturing sector is undergoing a digital transformation wave. Hence, there is a need for manufacturers to find new ways to overcome challenges in uplifting their day-to-day business operations. It has been facing multiple challenges, such as – managing inventory, improving manufacturing plants, increasing ROI, workforce management, setting up advanced technology solutions, etc. Thus, to boost manufacturing processes, the industry needs to develop flexible manufacturing systems. NASSCOM reports that with $5.5 to $6.5 billion spent on Industry 4.0 in FY21, the Indian manufacturing sector has begun to move towards digitalisation. NASSCOM has created the first-of-a-kind virtual platform, Smart Manufacturing Competency Center (SMCC) to enable manufacturing leaders experience end-to-end Industry 4.0 solutions.
How is the government boosting the manufacturing industry’s contribution to GDP?
Manufacturing has emerged as one of the high-growth sectors in India. The government, along with major industry players, has taken every possible step to transform the industry, making it as competitive as its global counterparts, with a focus to maximise the manufacturing sector’s contribution to India’s GDP up to 20% by 2025.
We, at NASSCOM, are focused on the development of Indian manufacturers to make them globally competitive. With support from the Ministry of Electronics, IT, and the Gujarat Government, we have set up a CoE in Gandhinagar to accelerate industry 4.0 adoption and build the largest collaborative ecosystem to co-create solutions.
How does NASSCOM envisage uplifting the Indian manufacturing sector?
Currently, there is a disparity in the level of technology adoption, especially by the SMEs within the Indian manufacturing sector. Lack of awareness, accessibility, and affordability contribute to such disparity.
To help the manufacturing industry keep up with the demands of the ever-changing global & Indian landscape, NASSCOM has launched multiple initiatives focusing on integrating innovative technologies like the Smart Manufacturing Forum, aiming to help 100 MSMEs achieve their digital dream with skill, capacity building, mentorship, and avenues to increase their market reach. UDYAM 4.0 – Nayi DISHA is another dedicated programme to guide MSMEs on where and how they can start.
How is NASSCOM encouraging MSMEs to contribute significantly to India’s manufacturing GDP?
According to the NASSCOM Industry 4.0 report, Indian MSMEs account for 33% of the manufacturing GVA as well as 45-50% of exports. This shows the importance of the manufacturing sector to India’s economic growth and global presence.
We, at NASSCOM, are encouraging MSMEs to move ahead in their digital transformation journey and adopt Industry 4.0 solutions that harness the value of data, computing power, analytics, insights, etc, to boost productivity. We believe that through the right tech capability upliftment, ecosystem development as well as financing and investment avenues, the Indian MSMEs will be able to achieve the goal of contributing $1 trillion through the adoption of Industry 4.0 by 2025.