<p>India’s manufacturing has historically lagged regional competitors like China despite starting from similar economic baselines in the 1980s. For many years, attempts to revitalise manufacturing in India yielded limited successes, with its share of GDP stagnating between 15% and 16%. ‘Make in India’, launched in 2014, along with several other business-friendly policies, has helped it rise to 17%. India’s ambitious target of 25% GDP growth from manufacturing is a distant goal, even as the country maintains a strong and steadily growing economy.</p>.<p>Global trade is in deep water as the era of multilateralism is fading fast, leaving only bilateral and free-trade-agreement (FTA) routes open. With the Trump administration’s imposition of hefty tariffs, India’s exports to the US are expected to receive a jolt. Strengthening India’s manufacturing base is not just a driver of domestic growth towards a Viksit Bharat by 2047, but also a buffer against external shocks and a pillar of long-term economic security.</p>.<p>India needs to reboot its manufacturing sector if it is to achieve its 2047 target. Its economy must grow from the current $3 trillion to $18 to $20 trillion; it needs to increase per capita income from $3,000 to $12,000 and create jobs for 600 million Indians. At the same time, India must ensure that growth is sustainable in line with the stated objective of achieving net zero by 2070. The manufacturing sector must create a multiplier effect on the growth of the services sector and absorb excess agricultural labour.</p>.<p>Within the manufacturing sector, India exhibits varying levels of global competitiveness across 10-11 value chains. While India is better off in global competitiveness in skills-intensive sectors, such as automotive and capital goods, it has a long way to go to catch up in raw-materials-intensive sectors, including pharmaceuticals, chemicals, metals and mining, apparel and textiles, furniture, leather, and rubber. It has a negligible presence in technology-intensive sectors, such as semiconductors, aerospace and defence, and renewable energy.</p>.<p>India’s robust manufacturing base can capitalise on shifting global trade flows resulting from emerging geopolitics. Nearly 30% of the Indian population is young, making it one of the youngest large economies in the world. This demographic dividend window of opportunity will remain open until 2040. This must be juxtaposed with the fact that large parts of the developed world are ageing. India is a global leader in software services. The time is ripe to integrate the IT and manufacturing sectors, taking the lead in creating the next level of smart, sustainable manufacturing that serves both domestic and global markets.</p>.<p>However, problems exist. Youth in India lack the required know-how, which in turn affects their employability. This calls for a heightened education and training ecosystem. The knowledge and skill gap among engineers joining manufacturing companies is wide. The current curriculum in engineering colleges requires substantial revision to align with industry needs. The gap is widening as automation increases in large manufacturing companies across the country. Students often lack a clear understanding of Industry 4.0 technologies and the importance of sustainability, which is crucial for the growth of the manufacturing sector. If we think of the education system as an enterprise, it will <br>mean an enterprise that produces 35% completely irreparable goods.</p>.<p><strong>Home-grown excellence</strong></p>.<p>India needs to create its workforce development framework by drawing insights from Germany’s industry-integrated education, Japan’s process-driven skill development, South Korea’s government-industry-academia collaboration, and China’s large-scale upskilling initiatives. A strong emphasis on hands-on training, advanced manufacturing technologies, and industry participation in education will be essential.</p>.<p>Educational institutions must enhance the quality and employability of their students, enabling them to become world-class engineering professionals capable of working globally. Once we achieve parity between what the global academic best are doing and what the industry needs, we can build our models of excellence. We need to make manufacturing exciting, aspirational, and rewarding. The Making culture is not so prevalent in India. At school levels, Atal Tinkering Labs-like initiatives are <br>key to generating interest among students in making and STEM careers.</p>.<p>Awareness campaigns on the manufacturing sector and the global career opportunities it offers are imperative. It is no longer sweat and grime on a shop floor. The apt name for this sector, I believe, is Manufacturing, Engineering, and Technology (MET) – a new-age sector where the digital and physical domains merge. Digital manufacturing, including automation, robotics, and AI, is the way forward. We need to create what we call conscious technologists – professionals who are skilled in cutting-edge manufacturing technologies but also mindful of sustainability, efficiency, and the ethical use of technology.</p>.<p><em>(The writer is a former IAS officer)</em></p>
<p>India’s manufacturing has historically lagged regional competitors like China despite starting from similar economic baselines in the 1980s. For many years, attempts to revitalise manufacturing in India yielded limited successes, with its share of GDP stagnating between 15% and 16%. ‘Make in India’, launched in 2014, along with several other business-friendly policies, has helped it rise to 17%. India’s ambitious target of 25% GDP growth from manufacturing is a distant goal, even as the country maintains a strong and steadily growing economy.</p>.<p>Global trade is in deep water as the era of multilateralism is fading fast, leaving only bilateral and free-trade-agreement (FTA) routes open. With the Trump administration’s imposition of hefty tariffs, India’s exports to the US are expected to receive a jolt. Strengthening India’s manufacturing base is not just a driver of domestic growth towards a Viksit Bharat by 2047, but also a buffer against external shocks and a pillar of long-term economic security.</p>.<p>India needs to reboot its manufacturing sector if it is to achieve its 2047 target. Its economy must grow from the current $3 trillion to $18 to $20 trillion; it needs to increase per capita income from $3,000 to $12,000 and create jobs for 600 million Indians. At the same time, India must ensure that growth is sustainable in line with the stated objective of achieving net zero by 2070. The manufacturing sector must create a multiplier effect on the growth of the services sector and absorb excess agricultural labour.</p>.<p>Within the manufacturing sector, India exhibits varying levels of global competitiveness across 10-11 value chains. While India is better off in global competitiveness in skills-intensive sectors, such as automotive and capital goods, it has a long way to go to catch up in raw-materials-intensive sectors, including pharmaceuticals, chemicals, metals and mining, apparel and textiles, furniture, leather, and rubber. It has a negligible presence in technology-intensive sectors, such as semiconductors, aerospace and defence, and renewable energy.</p>.<p>India’s robust manufacturing base can capitalise on shifting global trade flows resulting from emerging geopolitics. Nearly 30% of the Indian population is young, making it one of the youngest large economies in the world. This demographic dividend window of opportunity will remain open until 2040. This must be juxtaposed with the fact that large parts of the developed world are ageing. India is a global leader in software services. The time is ripe to integrate the IT and manufacturing sectors, taking the lead in creating the next level of smart, sustainable manufacturing that serves both domestic and global markets.</p>.<p>However, problems exist. Youth in India lack the required know-how, which in turn affects their employability. This calls for a heightened education and training ecosystem. The knowledge and skill gap among engineers joining manufacturing companies is wide. The current curriculum in engineering colleges requires substantial revision to align with industry needs. The gap is widening as automation increases in large manufacturing companies across the country. Students often lack a clear understanding of Industry 4.0 technologies and the importance of sustainability, which is crucial for the growth of the manufacturing sector. If we think of the education system as an enterprise, it will <br>mean an enterprise that produces 35% completely irreparable goods.</p>.<p><strong>Home-grown excellence</strong></p>.<p>India needs to create its workforce development framework by drawing insights from Germany’s industry-integrated education, Japan’s process-driven skill development, South Korea’s government-industry-academia collaboration, and China’s large-scale upskilling initiatives. A strong emphasis on hands-on training, advanced manufacturing technologies, and industry participation in education will be essential.</p>.<p>Educational institutions must enhance the quality and employability of their students, enabling them to become world-class engineering professionals capable of working globally. Once we achieve parity between what the global academic best are doing and what the industry needs, we can build our models of excellence. We need to make manufacturing exciting, aspirational, and rewarding. The Making culture is not so prevalent in India. At school levels, Atal Tinkering Labs-like initiatives are <br>key to generating interest among students in making and STEM careers.</p>.<p>Awareness campaigns on the manufacturing sector and the global career opportunities it offers are imperative. It is no longer sweat and grime on a shop floor. The apt name for this sector, I believe, is Manufacturing, Engineering, and Technology (MET) – a new-age sector where the digital and physical domains merge. Digital manufacturing, including automation, robotics, and AI, is the way forward. We need to create what we call conscious technologists – professionals who are skilled in cutting-edge manufacturing technologies but also mindful of sustainability, efficiency, and the ethical use of technology.</p>.<p><em>(The writer is a former IAS officer)</em></p>
