India Likely to Emerge as Fifth Largest Manufacturing Nation, BCG Reports

India to emerge as 5th largest manufacturing nation

As per Boston Consultancy Group (BCG) report, India is likely to emerge as the fifth largest manufacturing nation of the world if it is able to better the share of manufacturing in the Gross Domestic Products (GDP) to 25 per cent.

Currently India is the ninth largest manufacturing nation, and the scope of improvement in this is highly likely for the country, as per the latest BCG report. According to the National Manufacturing Policy the manufacturing sector of India has all the potentialities to increase its share value of GDP to 25 per cent from the existing 15 per cent by the year of 2022, which will certainly help India to earn the tag of fifth largest manufacturing nation.

BCG-CII has recently prepared and published a brand new economic report, and titled it as “People productivity-Key to Indian manufacturing competitiveness”. In the report it discussed many key things about future potentialities of this sector with detailed explanations.

Indian manufacturing sector has always high ability, but sadly it has not been able to transfer that ability into the reality in terms of achieving the expected growth. As a matter of fact its percentage share of GDP has always remained under achieved for the past two decades or so. The main reason to this ultra poor performance of this sector is one and only poor productivity of the country, BCG added in its report.

India’s manufacturing sector should strengthen this issue, as it surely needs to work hard towards the enhancement of people productivity to boost up its overall growth. It is a proven fact that even a slight increase in the ‘people productivity' can be beneficial for any organization around the world.

The report also said that the manufacturing sector needs some quality talent to change the scenario, so it is important to attract that sort of talents to the sector in a good numbers. The BCG report has studied surveys of some placement committees across the top level local educational institutes. The survey suggested that the students did not prefer to work for manufacturing companies due to some inevitable reasons like shortage of glamour quotient, poor salary-package and job offerings, lack of awareness about the high potentiality of the manufacturing jobs.

The sector needs to change this in near future in order to maintain a steady growth rate on a global scenario. The leading manufacturing firms need to take an initiative to develop the working environment. They need to provide better employee experiences, and lucrative pay packages to bring back the preference of the students towards this sector.

The manufacturing firms need to set up a brand value to attract the high quality talents. It should connect with the students, and make them aware about the long term strong growth opportunities of this sector, BCG report said.

India is at a distinct advantage, as it has very large working population and respectively low labour costs, which may help the country to grab a fair amount of shares at the global manufacturing pie i.e. $8.8 trillion for now. Most of the developing nations are trying hard to grab larger share in to the global scenario, so to cope with that India’s manufacturing sector needs to act fast and smart too, the report concluded.

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