Productivity, capacity, and skill sets are some of the things that stop India from replacing China in the world market as a global manufacturing hub, experts said at Business Today’s BT Mindrush 2023 event in Mumbai on Wednesday.
India has evolved over the years to become one of the fastest-growing economies in the world. Moreover, many developed countries and superpowers woke up to the importance of finding an alternative to China (which is a world leader in manufacturing) during Covid when supply chains saw a disruption like never before.
India gained from this but there is still a long way to go, experts suggest.
Pramod Sagar, MD and CEO of RHI Magnesita (India) said that 20 years ago, India was 100 years behind China. “But we have leapfrogged over the years. We may not be there yet but the next decade belongs to India. People want an alternative to China and that is why they are looking here. We can deliver that.”
If we can deliver, then what stops us?
“We need to look at our cost structure and productivity,” Sagar said. At this point, Praveer Sinha, CEO and MD of Tata Power pitches in and says that India has amazing talent but lacks the skill sets needed to run factories in India. “We need more facilities, labs, and mechanics. If people are shown a machine, they must open it, see all its parts, and have an in-depth understanding of it. That's how they will learn how to run Indian industries,” he said.
Sajjan Bhajanka, Chairman of Century Plywoods said that people may say that India has missed the bus in the last 30 years but he believes that there is an oyster of opportunities that lie in the future. “You see most of the countries have reached a saturation point wherein growth has come to a standstill,” he said and added that in several sectors such as plywood, India can ramp up its efforts and become a top player in the global market.
Sinha said he is optimistic because the country demonstrated incredible resilience during the pandemic. “It shows that India can do anything. Moreover, it is important to note that all the right things are happening in India despite the situation in Ukraine and Russia.”
He concluded by saying that this is India’s decade and possibly, century also.
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