Manufacturing is the efficient use of machines, tools, and labours to produce things for sale or use. This concept is mostly applicable to industrial production where raw materials are processed into finished goods on large scale. Indian Industry mainly focused on services instead of manufacturing. The base of manufacturing is determined by the various factors and productivity is the leader. The productivity of Indian Manufacturing industry is not more when we compare it with other international sectors. Greater Noida, Nasik, Mumbai, Aurangabad, Bangalore are the main hubs of manufacturing in India.
Benefits of Manufacturing in India:
Make in India Campaign: Because of this campaign, Indian Government is giving lots of attention and high priority to manufacturing industry including sufficient investment and development.
High Quality Production: Most of the Indian manufacturers use high-quality machines and tools to produce good quality products. Many Indian industries are well known for the care and trustworthy for their work and business deals. Unlike China, India does not carry the stigma of poor quality production.
Availability of labour and Cheap Labour Cost: As compare to China, labour cost is very cheap in India. India has a huge number of labours who are skilled as well as unskilled. The Skilled educated workers like researcher, engineers are able to contribute cost-effective development support to manufacturing operations.
Domestic Market: Due to attractive domestic market, India can easily enter into in-country manufacturing operations
Challenges of Manufacturing in India:
Power availability: The major challenge in Indian manufacturing is Low power availability. Due to unavailability of power 24 hours per day, there is decrease in productivity and efficiency, and lower output rates.
Labour Productivity: Labour productivity is lesser in India than many competing countries. This is because of lag in supply chain management, transportation, production planning, and maintenance.
Intellectual Property Protection and Enforcement: IP protection and enforcement is an expensive and high risk in India. Another challenge with IP rights in India is that India is currently going through some significant IP reforms, which make things more complex and, at least for now, uncertain.
Cost and Fragmentation of Transportation and Logistics: Transportation is very costly and slow in India. It can take long delivery time to get products to the coasts from some places in India. Furthermore, logistics are inferior. The positive point is that the Indian government notice this problem in infrastructure and is working to resolve it.
About the Author
Dhanesh Ghonge, is the Co-founder at D G Group of Companies, who has completed his graduation from engineering field. Dhanesh is a man with an extraordinary experience as well as deep knowledge. With these attributes, he is driving D G Group of Companies with superior excellence. He is an engineering graduate from NMIET College in Pune. His passion and curiosity for the trends in manufacturing sector has led him to start his own company.
Opportunities and Challenges in the Indian Manufacturing Industry
