People Productivity: Key to Indian Manufacturing Competitiveness

India’s potential to become a manufacturing superpower has been discussed time and again.

This potential is underpinned by the availability of an abundant workforce and labor cost competitiveness the country enjoys. Not surprisingly, the National Manufacturing Policy has set a target for India’s manufacturing sector to increase its share of GDP from 15 percent currently to 25 percent by 2022 (in line with global peers today). Achieving this target will help India become the fifth-largest manufacturing nation globally–up from ninth presently.

Despite the high potential, though, the Indian manufacturing sector has not been able to achieve the requisite growth. The industry’s share of GDP has remained relatively flat for over two decades now. 

CII To Start New Scheme To Boost MSME Share In GDP

Micro, small and medium enterprises (MSMEs) in India will now have an opportunity to improve their topline and bottomline.

The Confederation of India Industry (CII) is to implement a programme for the MSMEs to increase value addition by them through interventions aimed at increasing the sector’s contribution to the country’s gross domestic product (GDP).

The initiative is called “Global Top 100 Companies”. Only serious players with concrete plans to increase scale and efficiency will be on the CII’s radar. 

2012-13 Saw a Decline in Stalled Investment Projects in Manufacturing

CII had covered the state of investment projects in India on an aggregate basis, providing an analysis in terms of its classification on the basis of ownership, broad sectors and state-level.

Our analysis showed that the investment scenario in the country had suffered in the last five year or so as reflected by the significant rise in stalled/shelved projects coupled with decline in the new projects over the same time period. The trend across sectors and states was no different, with the crucial sectors such as electricity and services sector witnessing a rise in stalled projects over the period. In this issue, we dwell on the crucial manufacturing sector, whose recovery is critical for lifting the overall GDP growth in the economy. We have used CMIE’s CapEx database for extracting the relevant information. 

Industry Business Challenges

CII this year has started an unique industry initiative “Industry Business Challenges”, as part of its innovation journey.

In this initiative industry for the first time has agreed to post their business challenges in an open and shared platform, to invite innovative solutions.

Apart from individual innovators and academia, this is also an significant opportunity for MSMEs to look into these challenges and provide innovative solutions.

This initiative has the potential to open up new paradigms for MSMEs in the country, to scaling-up and build collaboration with large multinationals.

For queries contact: + 91 11 4577 2016 | i3@cii.in