India’s manufacturing can’t scale up to global standard

June 17, 2013 8:34 am

“The government’s target to achieve 25 per cent of manufacturing share in GDP does not look very achievable”
– Samir Gandhi, Director, Gandhi Automations Pvt. Ltd.
The manufacturing sector plays a pertinent role in the global economic growth. It creates indefinite jobs in the society and delivers consumer solutions for accelerating economic stability in the economy. Manufacturing is a critical intermediary in the economy of a country. It has contributed a consistent share of almost 15 per cent of the GDP over the last decade. Samir Gandhi discussed about the manufacturing industry as well plan to capture the overseas market.
Limited growthGandhi Automations has sluggish 1st two financial quarters. The company experienced limited growth during that time. However, its growth during the second half of the financial year made it up for the slowness faced in the first 6 months. Its top line growth for the financial year was 27 per cent and it crossed `100 crore mark.
Project delaysIndian economy faced obstacles in decelerating growth and high inflation. Also, Gandhi saw many projects being delayed indefinitely which resulted into less cash flow.
Maintaining competitivenessIndia is emerging as a “global manufacturing and supply hub” in the global economy. In order to sustain that image, Gandhi Automations needs to maintain its competitiveness. The company is continuingly increasing its productivity, safety and sustainability.
Being organisedGrowth is a consistent thing in Gandhi Automations which have added a 1,20,000 sq. feet of factory space to the already present 75,000 sq. feet warehouse land. There is a tremendous need of its products in the market which has led to increasing its manufacturing capacity. As the company is already No1 entrance automations and loading bay equipment company in India, it is now looking to capture the overseas market as well.
Gandhi Automations is in the process of hiring the best of the best personnel. Even from the logistics point of view, the company is growing significantly. It also has rolled in ERP system to be more organised in its operations.Manufacturing sector in GDP growthThe share of manufacturing unit in the country’s GDP in 2010-11 was 16.2 per cent and 15.7 per cent during 2011-12. Realistically, the government’s target to achieve 25 per cent of manufacturing share in GDP does not look very achievable. The industry is facing global economic slowdown currently, which has resulted into decelerating agriculture sector. More than 60 per cent people in India depend on agriculture and its share in the GDP is restricted to just about 13.7 per cent. Moreover, the government had announced initiatives with the objective to make manufacturing as a prominent part of the economy, which primarily depends on services. Unfortunately, India’s manufacturing can’t scale up to the global standards because of limited service resources.