Delloitte bullish on Indian manufacturing
By UK India Business Council (UKIBC)
The global slowdown has had a negative impact on the manufacturing industry, including in India where manufacturing has grown at a sluggish 0.5% in the first half of the current financial year compared to 5.1% in the corresponding period of 2011-12. This will pull down India’s overall economic growth from 7.3% in 2011-12 to 5.4%.
Deloitte Global Manufacturing Competitiveness Ranking
The Global Manufacturing Report 2013 compiled by consultancy firm Delotte, however, brings some cheer for Indian manufacturers. In its recent study, Deloitte ranked India as the fourth most competitive market behind China, Germany and the US. India scores highly on a strong talent pool in science, technology and research, and as having one of the lowest labour rates in the world.
It is striking that, over the next five years, Deloitte expects India to climb to the second position after China, with Brazil coming in at number three. This underlines the important role of emerging economies. The report highlights the need for manufacturers worldwide to think ahead and work on their international strategies
India’s high rating is greatly influenced by the strength of the country’s labour force. According to Timothy Hanley, Deloitte’s global leader, manufacturing: “The labour pool in India is the envy of anyone else in the world”. It is expected that this will boost the country’s ability to conduct cost-efficient product development, innovation and commercialisation.
Huge numbers of young graduates and engineers are coming out of Indian institutions, yet still a large proportion of them still need to be trained on the latest technologies. The UK is likely to be a key partner for India in this area, with bilateral and business-to-business discussions on collaborating with the Catapult Centres taking place.
There is indeed a positive outlook, however, India needs to improve particularly in terms of its legal and regulatory framework and labour laws. It also needs to develop better physical and energy infrastructure to realise its manufacturing potential.
The Indian National Manufacturing Policy (NMP) currently being put in place is as a step in the right direction as it shows the Indian government’s intent to work towards resolving the challenges faced.
UKIBC’s line of work in the Advanced Engineering and Manufacturing sector aims to help UK businesses connect with opportunities in India’s budding market. For more information, please contact: Prasenjit.Dhar@ukibc.com
Further resources:
Deloitte 2013 Global Manufacturing Competitiveness Index
