The Evolution of the Manufacturing Industry

0

Manufacturing is the backbone of an economy and the driving force behind national security. As a result, any developing nation must have a robust manufacturing industry. After independence in 1947, India, like several developing nations, selected a course of planned self-reliant development, with industry as the primary source of economic growth. The Indian economy’s development path has been charted out in the form of five-year plans since independence. Manufacturing received 8.6 percent of the overall budget (nearly 8000 crores) in the first five-year plan. Manufacturing in India developed from an industrial base in the 1950s and 1960s to a licensing system between 1965 and 1980. Following the liberalization of the economy in the 1990s, the industry opened up to international competition. India’s manufacturing sector provided 14.43 percent of GDP in 2021. The country takes great pride in being the world’s sixth-largest manufacturer.

The Covid-19 epidemic has influenced the manufacturing industry, as it has on other businesses. Supply chains were severely disrupted as a result of the ensuing lock downs. Manufacturing, like other industries, battled back with innovation to address the pandemic’s challenges. Companies, big or small, in the sector used Big Data and Analytics to foresee the future, survive, and grow during tough times. Simultaneously, they turned to the IoT and AI to help them overcome today’s supply chain and personnel difficulties. The use of these technologies is only going to increase. AI, in particular, has immense potential. Although AI is not widely used in India’s production ecosystem (manufacturing sector) today, it is widely used among freshly established manufacturing startups. In the manufacturing industry, the variety of the Indian workforce serves as a spur for innovation. According to a World Bank report, India is one of the world’s top biotechnology players, producing automotive parts, pharmaceuticals, and assembly in the manufacturing business. Although India is still a developing country, it rose three places to 57th place in the 2018 Global Innovation Index (GII) and 48th place in 2020. The sector expects to work its magic on the Indian economy, given present technology and the potential for innovation with the widespread use of Blockchain along with AI and Computational Empathy.

Technology will become a crucial pillar for Indian enterprises to innovate, adapt, and develop in the coming years. To reinvent India as a global manufacturing hub and further the Make in India mission, the collaboration between India’s technological startup and manufacturing enterprises would be imperative. The Indian manufacturing industry has been hit particularly hard by the Covid-19 lockdowns. Its speedy recovery is pivotal, given that it accounts for 14.43 percent of the country’s GDP. The IT industry must raise strategic investment to recover from the pandemic’s effects and become a key driver of India’s $5 trillion economic goals by 2025, as the government pushes to be Vocal for Local. In recent years, the global supply chain issues and international trade conflicts, which have targeted China, helped India position itself as a global manufacturing hub. The political intent to make India a global manufacturing hub is evident. The government’s priority for the sector is demonstrated through the concepts of Make in India 2.0, Atmanirbhar Bharat, and Vocal for Local. As Apple and other leading technology companies have started manufacturing in India, the narrative has begun to pay off in India’s favor.

It is now high time for India to embrace the opportunity that history has presented and expedite its manufacturing engine into high gear.

LEAVE A REPLY

Please enter your comment!
Please enter your name here