India is now the world’s most populous country with over 1.4 billion population and its economy is the fifth largest in the world.
Experts have predicted that the next couple of decades will belong to India and its growth. According to forecasts by the British economic research institute Oxford Economics, India’s industrial and overall economic growth is expected to maintain a robust pace of around 7 percent annually for the next four years.
The manufacturing sector can play a pivotal role and be a catalyst for generating jobs and showcasing the country’s potential on the global platform.
Mr. Ravi Raghavan, MD, Bharat Fritz Werner (BFW),envisions a solid growth path for India and states that “India should be a $30 trillion economy by 2047, our 100th year of independence. During this time, the manufacturing sector would contribute about 25% of the GDP. The machine tool industry will also see almost eight-fold growth.”
In this blog, we look at some of the key factors and parameters driving India’s growth story.
Key factors and parameters of India’s growth story
India’s strategic growth is primarily due to many initiatives taken by the Indian Government. Here are some of the initiatives and other factors.
Some recent initiatives in India
In recent years, India has seen a surge of initiatives dedicated to creating a favourable environment for business and economics. The Government of India’s initiatives, such as Make in India, Digital India, and Startup India, align with global demands and opportunities. These initiatives have created a conducive landscape for conducting business activities and encouraging growth.
Manufacturing pivot in India
The growth of India’s economy is now pivoting towards the manufacturing sector, transitioning from the dominance of the IT sector in the previous decades. The Indian Government has outlined goals to boost the GDP share to 25% by 2025. Initiatives such as manufacturing zones and Skill India will help progress this growth.
India’s machine tool sector
India also holds great potential for international machine tool manufacturers, as the country’s production levels are poised to exponential growth. Mr. Raghavan says, “The Indian machine tool sector is currently experiencing a surge in expertise and innovation, making it an ideal partner for leading companies in the sector and their suppliers.”
Skill development: need and initiatives
In addition to its demographic advantage, India is experiencing tremendous innovation and technological growth. However, this also brings forth challenges notably – skill mismatch and the hurdle of reducing the skills gap.
The solution? New skills will have to be developed, and the existing workforce will have to upskill, unlearn old traditional methods, and relearn new skills. Education and initiatives such as the ‘Skill India Initiative’, academia, the Government, and industry coming together will ensure a skilled workforce that will drive this manufacturing transformation.
Growth across sectors
Another notable factor is the growth of all sectors. Whether it is the automobile or the new sunrise industries, such as defence, aerospace, space, electronics, etc., all industries have seen impetus in the last few years. This foundation and start is going to lead to exponential growth.
Diversity and inclusion
The traditional notion of the manufacturing industry being restricted to male employees is changing fast. Many companies, such as BFW, have made strategic changes to be more inclusive and tap into the advantages of having a diverse workforce. Companies that embrace diversity and inclusion will have a competitive edge.
BFW is prepared to contribute to this growth journey
Being a progress-focused machine tools manufacturing company, BFW is prepared across all aspects required to be part of India’s growth focus for the coming decades.
From reducing the skills gap by strategic initiatives related to unlearning, learning, upskilling, hiring a healthy mix of young and old generations, etc. BFW is fully prepared to meet the burgeoning manufacturing demands with automation, machine learning, and artificial intelligence, among other infrastructure. The company’s new manufacturing plant will triple its machining solutions capacity and is ready for launch. Moreover, BFW’s commitment to sustainability practices aligns with India’s developmental goals as well as global aspirations.
With everything in place, BFW is ready to be a significant player in India’s growth story in the ensuing decades.
