With the vision to transform India into a global design and manufacturing hub, The ‘Make in India’ initiative was launched in 2014. As we are about to complete 10 impactful years of transformation, our theme for the 6th Celerity Supply Chain Tribe Awards & Conferences, delved into gauging the impact of ‘Make in India’ initiative. Our expert panelists deep dived into challenges faced till date, opportunities being created, and explored the strategies and solutions for solidifying India’s position in the global manufacturing landscape. One key takeaway from the panel was that indeed Make in India is reshaping India’s manufacturing landscape, propelling the nation towards self-reliance and industrial excellence. Excerpts of the panel proceedings that unfolded…
Have we fully embraced the ‘Make in India’ initiative and are we addressing the right actions and objectives?
Indian Government as well as our manufacturing sectors have indeed embraced this initiative with open arms.
Ravikant Parvataneni, CEO India, Argon & Co: When we talk about ‘Make in India’, the implication reflects increased emphasis on the manufacturing capabilities of the country and boost its contribution towards the country’s GDP. What has been the forte of the services sector for over two decades, we want to replicate the same with the manufacturing sector as we move ahead. During this journey, we would encounter multiple challenges, and we may not be able to replicate what China has done to attain the tag of manufacturing superpower of the world. But this also gives us an opportunity to innovate and offer a unique proposition to the world on the back of our inherent strengths. I would not shy away from saying that we should imbibe certain manufacturing best practices that China has done over these years to fast forward our journey towards achieving the said target because we must realize that it’s just not an easy task. To top it all, our fast-changing geopolitical situations are only adding to the chaos.
Sanjay Desai, VP Asia, Supply Technologies: Yes, we can say with confidence that the Indian Government as well as our manufacturing sectors have indeed embraced this initiative with open arms. There are four pillars of Make in India initiative, which are New Mindset, New Sectors, New Infrastructure, and New Processes. Let us a take a look at the top five actions/ objectives, which will drive our ambition of ‘AatmaNirbhar Bharat’…
Government Policies: Indian Government has introduced many policies like (AatmaNirbhar Bharat, Ease of Doing business, Production Linked Incentive Schemes (PLI), etc. We need to sustain these initiatives, measure their throughput, and build a continues improvement culture across the nation.
Ease of doing business: Indian Government launched this initiative with renewed vigor during year 2014. Within 10 years, we have reached 63rd place in 182 nations ranking. In 2014, we were languishing at 143rd rank. To further enhance the ease of doing business, more than 39,000 compliances have been reduced and more than 3,400 legal provisions have been decriminalized by the current government.
Boost Manufacturing sector/s: Multiple industrial sectors such as Chemicals, Pharma IT/ Technology, Medical Devices, Automotive, Electronics and Textile manufacturing have seen growth and expansion due to this initiative. Companies are setting up new manufacturing units and expanding existing ones either moving up the scale vertically or horizontally.
Enhance our MSME Sector’s growth potential: There are 630 lakh MSMEs (micro small and medium enterprises) in multiple sectors and states in India. Boosting our MSME is an integral part of government objectives. MSMEs in India contribute to 40% of India’s domestic revenue, 32% of India’s GDP / 45% of total manufacturing output and support more than 50% of labour.
Crossborder trade capabilities: Crossborder trade is critical for the growth of any economy. Crossborder trade opens up new markets, new opportunities and trade partnerships breaking the age-old barriers. Besides providing access to a diverse global economy, it also opens the doors for exchange of best practices in technology adoption and innovation in manufacturing.
What role dose government policies and reforms play in supporting the objectives of the 'MII' initiative?
Government policies and reforms have played a pivotal role in supporting all industry verticals, fostering growth, competitiveness, and innovation.
Subodh Nagarsekar, VP – Procurement & Supply Chain, Rentokil Initial: We all know that the government has launched an e-biz portal. It aims at reducing the points of contact between business entities and government agencies, standardizing ‘requirement information’, establishing single-window services, and reducing the burden of compliance, thereby benefitting stakeholders such as entrepreneurs, industries and businesses, industry associations, regulatory agencies, industrial promotional agencies, banks and financial institutions, and taxation authorities. But honestly speaking, looking at the number of compliances and the regulations that the chemical industry needs to adhere to, are we still there? It is a bigger concern that must be addressed immediately. India, having a huge demographic area, rules & regulations change in every state / region. There is no standardization when it comes to bringing rules & regulations pan-India. This, in turn, poses a huge challenge for chemical companies because adhering to each and every such compliance for every region is a nightmare. From the time, the government launched ‘Make in India’ initiative, there have been lot of changes. Obtaining permission has now become much simpler than it was earlier. The government is also rolling out certain schemes and certain tax benefits to facilitate ease of doing business, opening new windows of opportunity. Having said that, a lot more needs to be done for the chemical industry.
Another crucial agenda that demands serious discussion is the need for an adequate infrastructure to support the growth that we are aiming to achieve. Let me share with you an instance, a few years back, at Mormugao Port in Goa, the transportation of imported hazard chemicals was strictly prohibited. We had to then transport the entire product via road to JNPT port, which was not only time consuming but was also a risky affair. Through years of deliberation with the respective authorities, we finally managed to start the transport of hazard chemicals through Mormugao Port. Thankfully the government has started taking initiatives towards this front such as Sagarmala and Bharatmala, still we have miles to go before we reach an acceptable level when it comes to developing a seamless infrastructure in the country.
I would also like to assert that it’s not just the government, industry stakeholders have to take significant efforts to turn the tide in the right direction. One last but very critical aspect that I would like to draw your attention to is – do we have the skilled manpower to support these initiatives? We need to collaborate with the academic institutes in instilling the right education backed by sound practical knowledge. Can we make them capable of becoming entrepreneurs at an early age? The last few years have put a huge limelight on sustainability. The chemical industry is also attempting to work in an eco-conscious manner. We are making strides towards green chemistry. We have decided to become Carbon Neutral by 2040. We have a very stringent target of reducing toxic chemicals and shifting towards green chemicals. Amid these challenges, how can the government best support us remains a question mark.
Ravikant Parvataneni: Government policies have and will continue to play a very critical role in supporting the objectives of the MII initiative. The target is big and if we have to achieve that we need a multifold approach and govt policies will play the role of perfect catalyst. These policies could be broadly categorized into three types:
Incentives and /or subsidies – PLIs-production linked incentives, FAME subsidies, etc., in certain industries.
Supporting infrastructure – Industrial corridors, logistics parks, railways, roads, etc. for eg. DFC, National highways, GIFT cities, Integrated logistics parks, etc.
Laws /polices – Another critical area would be to make it easy to start and run business for entrepreneurs. This could include ‘Ease of Doing Business’, not so stringent labour laws (enabling easy recruitment/ retrenchment, etc.), avoiding red tape, etc.
Nitin Joshi, Head – Logistics & Warehouse Operations, Fabindia: The industry has significantly benefited from the ‘Make in India’ initiative. These include…
Foreign Direct Investment (FDI): Apparel, Furniture, Home Furnishings, General Merchandise manufacturers and retail businesses have benefited from increased FDI inflows, which enhance production capabilities and market access.
Production Linked Incentive (PLI) Scheme: The PLI scheme incentivizes domestic production. For manufacturers, this means support for setting up modern facilities, improving quality, and increasing exports.
Ease of Doing Business: This initiative has streamlined processes, reduced compliance burden, and made it easier for manufacturers and retailers to operate efficiently. Apart from traditional brick & mortar businesses, D2C (Direct to consumer) fashion brands and ecommerce start-ups are able to launch their businesses faster.
Tax Reforms: One Nation One Tax measure by launching Goods and Services Tax (GST) and corporate tax reduction contribute to a favorable business environment.
In what ways are the socioeconomic habits of young India, (spending patterns, lifestyle choices, and technological adoption) will impact MII initiative, and how can businesses and policymakers leverage these trends?
This single factor presents a unique opportunity for the nation to become a driving force in the world economy.
Ravikant Parvataneni: I do not think that socio-economic habit of young India will impact the MII initiative a lot. In my opinion, we have to start doing In India what China has been doing for the world, albeit in a smaller proportion though. For MII to be successful, we must export a lot and therefore we have to make what the world needs cheaper and quicker than others. Yes, India having a very young (and big) population will anyway consume a lot of what is ‘Made in India’ but the value addition to India’s GDP has to be driven by exports rather than domestic consumption.
Nitin Joshi: GenZ prefers transparency, sustainability and authenticity when they buy new products. They have clear choices or preferences when it comes to fashion brands and eating healthy. Sustainable fashion trends are seeing a big fillip because of GenZ. In fact, Fabindia has launched a brand specially for them – FabNu, targeting the age group of 18-35. Another interesting gamut about them is that they are tech savvy, which ultimately pushes brands to take the tech route and further the growth of ‘Make in India’ initiative. This also necessitates deploying technology in the supply chain for last mile connectivity be it at the warehouses or retail fronts.
New age tech companies or startups venturing in this space come with great clarity of thoughts and their respective target audience, which makes the entire process seamless and transition simpler. They come prepared in the market with every operational nitty-gritty such as sourcing, fulfilment, best technology, so on & so forth. They have the right connection and are extremely confident when they are pitching their innovation or their brand to the investors. That makes a huge difference. They ensure that the money gets invested at the right place. Fashion retail is one of the fastest growing industries in the country and these young brands are only accentuating the growth pedestal. These brands are also giving a great platform to regional artisans who otherwise can’t showcase their potential to their target market due to lack of visibility, which is a very positive sign.
Sanjay Desai: During 2023, we overtook China’s population becoming No 1 populus nation in the world. A significant factor is the vast youth demographic, with over 40% of India's residents being under 25 years old (over 600 million people) which is nearly close to double the population of the USA. Let us understand some of the trends that business and policy makers will be watching closely…
Disposable Income: Young India is better educated; they have high earning potential. They also spend more to groom themselves on luxury products / high end IT / Electronics commodities. Most businesses are focusing on young consumers' preferences and tailor products accordingly.
E-commerce growth: The rise in online shopping, fueled by convenience and variety, is reshaping retail and distribution networks. This growth is helping the entire supply chains, warehousing/ distribution, creating manufacturing and infrastructure opportunities across the nation.
Preference for health and sustainable consumption: Young Indians are focused on health, ethical consumption and higher mobility which is creating demand for organic foods, fitness equipment, and health services. There is a growing awareness of environmental issues and a preference for sustainable and ethically produced goods.
Digital natives: Young India is supremely confident and native to advanced technology. Demand for digital devices and technology will drive growth in electronics and tech manufacturing.
Innovation and start-ups mentality: Young India has an entrepreneurial mentality which contribute to the creation of startups and small-to-medium enterprises (SMEs), driving innovation and diversification in manufacturing.
What strategies should India adopt to diversify its services exports beyond IT and BPO, and how can this diversification contribute to a sustainable growth in MII?
Diversification broadens India's services export base, reduces vulnerability, and contributes to sustainable growth. By embracing these strategies, India can create a robust and resilient services ecosystem beyond IT and BPO.
Nitin Joshi: Few strategies and their potential contributions are as follows:
Hyper Automation
Strategy: Embrace hyper-automation by integrating artificial intelligence, machine learning, and robotic process automation. Optimize entire business processes, accelerating tasks and ensuring precision.
Contribution: Enhanced speed, accuracy, and adaptability across sectors, from retail to healthcare.
Focus on Skill-based Services
Strategy: Smaller and mid-sized companies should redefine customer and employee experiences. Leverage data analytics, sentiment analysis, and AI to tailor personalized interactions.
Contribution: A customer-centric approach enhances productivity, attracts talent, and challenges larger corporations.
Geographical Diversification
Strategy: Expand services to emerging markets beyond India.
Contribution: New industries recognize operational efficiency, streamlining processes, reducing costs, and accelerating growth.
Sanjay Desai: When our PM Mr Modi Ji visited USA during June 2023, he declared a slew of business deals with the US and other countries like UAE and Australia. India can leverage Make in India initiative to create new monetization models by diversifying our global supply networks. Let us look at a few strategies that will allow India to achieve sustainable growth in MII.
Promote Health care and medical tourism – India has been investing in quality healthcare infrastructure to provide world class medical services. Now is the right time to work on Visas and travel regulations to attract foreign visitors to India for using our medical facilities
Financial programs meeting global standards – Encourage Fintech start-ups and innovative financial solutions internationally. Increase the outreach of our financial sectors in neighboring regions like the GCC countries and / or SEA countries.
Skills development / knowledge transfer – Encourage continuous learning by upskilling our labour force through online courses. Promote digital literacy and advanced technology curriculum amongst the workforces.
Export promotional councils – Establish export promotion councils who can provide guidance. Participate in various trade missions internationally to gain access to critical information that can determine our approach.
Promote Green Manufacturing – Indian Government and major industries houses should promote adoption of environment friendly and sustainable agricultural as well industry manufacturing practices. Incentivize the use of renewable energy sources to reduce carbon footprint.
The government is investing substantial money in focused initiatives like Smart Cities / Industrial corridors. We have some great examples of PPP like DMIC (Delhi Mumbai Industrial Corridor) Sagarmala (SEZ) projects. How will these impact India's aspirations in making MII the driver for our growth?
These infrastructure focused initiatives are one of the key enablers to make MII a big success.
Ravikant Parvataneni: We have probably not done enough on this front and the government needs to pick up pace and spread such things across the country rather than just in some pockets. Without proper infrastructure, things might start positively but will not keep up pace as required, and hence a robust supporting infrastructure needs to be in place to make MII the key driver of our growth.
Nitin Joshi: Make in India focused initiatives like Smart cities and Industrial corridors aim to transform the country into a global manufacturing powerhouse.
Boosting Manufacturing and Industrial Growth: The initiative has attracted investments, fostered innovation, and created employment opportunities. It contributes to industrial growth by promoting domestic manufacturing and reducing import dependency. The manufacturing sector is expected to reach US$ 1 trillion by 2025, contributing about 25% to India's GDP.
Key Sectors and Priorities: The government has identified 25 key sectors, including automobiles, textiles, pharmaceuticals, electronics, defense manufacturing, renewable energy, and aerospace. These sectors receive focused attention and policy support to drive growth and development.
Reducing Import Dependency: By promoting local manufacturing, India aims to reduce reliance on imports. This strengthens the country's economic resilience.
Collaboration and Public-Private Partnerships: The initiative emphasizes collaboration between the government and industry stakeholders. Regular consultations, policy reforms, and sector-specific initiatives create a conducive environment for businesses to thrive.
Sanjay Desai: Government of India is developing 10-11 Industrial Corridors Projects across the country in phased manner over next 10 years. DMIC is one of the early ones to be launched. Such investment will enhance our ability to develop rural as well as semi-urban areas for future growth. Let us look at the areas that MII will compliment to fuel India’s growth over next three to four decades.
Development of SMART Cities – Developing rural and urban infrastructure like transport, utilities, communication networks, providing reliable power and water supply critical for industrial operations.
Connected platform and systems – MII initiative will create interconnected industrial sectors using technology to facilitate seamless logistics & transportation services between manufacturing plants/ Data centers and Warehouses.
Foreign direct investment (FDI) influx – As MII initiatives gain traction with more industries coming under the scope, it will form a world-class manufacturing hub, which will attract the foreign companies to directly invest in India.
Promoting a sustainable and continuous operations – Make in India initiative will promote sustainable / continuous operations using circular economy principles and green manufacturing practices. It will also focus on resource management, waste management and use of renewal energy in advanced manufacturing.
Improving skills development in labor is crucial for India to become a leading manufacturing hub. How do you see the role of Academics and Indian Corporations playing a pivotal role in this growth?
Collaboration between academia and industry fuels original product development, enhances economic growth, and ensures global competitiveness.
Subodh Nagarsekar: The skill development landscape in India is a mix of government led initiatives, private sector participation, and community driven programs. Leading Indian corporates have recognized the need to bridge the skill gap and have partnered with training institutions to offer industry relevant skill development courses to create a workforce aligned with contemporary industry demands. Majority of the jobs @ 70% are generated in companies with manpower of less than 20 people. This is more so in the manufacturing industry, and it is therefore critical that small companies and other employers verify and validate the job roles and performance metrics from their perspective and adapt them to suit their requirements. For higher levels of competencies and expertise, exposure to practical work experience is a must. The Corporate Sector should open its doors to interns and trainees in large numbers – through on-the-job training opportunities. The corporates need to work closely with academic institutes like ITIs, which may help them design courses pertaining to industry standards and industry requirements.
Ravikant Parvataneni: We are at a very critical stage in our manufacturing initiative and if we don’t take actions to match skills & academics to what the industry/corporates need, we might risk missing the manufacturing bus. With manufacturing taking a backseat to services (dominated by IT) over the last 15+ years, most of the colleges have adjusted their academics to push out what the industry has demanded, ie. IT/Computer Science professionals. In this process, most of the colleges just do not recruit for core engineering branches (Mechanical, electrical, etc.). If manufacturing has to be really big, we will need many more core engineers. The challenge is even if we start action today, it will take 5-6 years for the first batch of such engineers to come out and start contributing. Apart from this there is big disconnect of academics with the industry in India. The corporates and academicians have to come forward and engage with each other much more closely at all levels, be it setting the curriculum, offering industry experience/internships including job offers/ apprenticeship/ trainings, etc. The closer the bond between the academics and the industry, the better will be the product, leading to a successful transition to make India as a leading manufacturing hub of the world.
Nitin Joshi: Academics and Indian corporations indeed play pivotal roles in India's manufacturing growth. Let's explore how:
Industry-Academia Collaboration
Innovation Ecosystem: Fostering collaboration between industry and academia is essential. By creating interdisciplinary intersections between technology, policy, and sustainability, India can spark innovative solutions.
Knowledge Creation: Engineers and researchers collaborating with companies can develop tailored products, solutions, and intellectual property (IP). This culture of knowledge transfer drives continuous innovation.
Reducing Costs: By partnering with universities and research institutions, manufacturers can leverage cutting-edge knowledge to embrace transformative innovations, leading to reduced costs and improved resource efficiency.
Skill Development and Research
R&D Investment: Rising investment in research and development (R&D) through corporate and academic avenues has attracted global companies to set up manufacturing operations in India.
Academic Expertise: Academic institutions contribute to parallel life-cycle assessments, identifying value chain hotspots, and optimizing resource use.
Driving Innovation: Public research institutions play a crucial role in the innovation profile of sectors like automotive manufacturing.
Sustainable Production And Climate Change
Low-Carbon Transition: The urgency to combat climate change demands a swift transition to a low-carbon future. Manufacturers hold immense power to accelerate sustainability efforts.
End-to-End Impact: From materials and energy consumption during manufacturing to end-of-life design, manufacturers can drive sustainable practices.
How does improving access to financial resources and inclusivity contribute to the growth of MII initiative? And how will this help our SME brothers to leverage these benefits?
Financial resources and inclusivity empower SMEs, enabling them to contribute to India's manufacturing growth. By leveraging these opportunities, fashion and retail SMEs can expand, innovate, and compete globally.
Sanjay Desai: Financial inclusion means individuals and businesses have access to useful and affordable financial products and services that meet their needs – and are delivered in a responsible and sustainable way. Financial Inclusion is also one of the 17 Sustainable Development Goals. Let us understand how financial resources will contribute to the growth of MII initiative…
Solve societal challenges: Financial inclusion helps to solve a number of societal issues, such as economic growth, employment, poverty, and income inequality. Financial support enables businesses to scale up and compete in international markets and boost exports to strengthen India as a brand.
Access to financial capital for SMEs: Improved access to working capital helps SMEs manage their daily operations smoothly, reducing the risk of liquidity crunches. This allows SMEs to undertake larger projects and expand their market reach by investing in right resources.
Digital financial services: India is home to multiple financial services models. It enables SMEs to apply for loans, manage accounts, and make transactions online. Some of these services also offer alternative financing options such as peer-to-peer lending and crowdfunding.
Enhance educational/ training capabilities: Better access to financial capital allows SMEs to invest in educational and skill development programs. These capabilities help SMEs to be creative & inclusive in their development approach.
Nitin Joshi: Improving access to financial resources and promoting inclusivity play crucial roles in the growth of the Make in India initiative. Let's explore how these factors contribute and benefit SMEs in the fashion and retail industry:
Access to Financial Resources
Capital Availability: Adequate funding enables businesses to invest in technology, infrastructure, and skilled labour. Make in India encourages financial institutions to support manufacturing and innovation, ensuring SMEs have access to loans, venture capital, and working capital.
Export Financing: Access to export credit and trade finance helps SMEs participate in global markets.
Inclusivity
Skill Development: Make in India emphasizes skill enhancement. SMEs can benefit from a skilled workforce trained in modern manufacturing techniques, improving productivity and product quality.
Technology Adoption: Inclusive policies encourage SMEs to adopt digital technologies, automation, and Industry 4.0 practices. This enhances efficiency, reduces costs, and improves competitiveness.
Local Procurement: The Public Procurement (Preference to Make in India) Order 2017 promotes local industry by giving preference to public procurement. SMEs can participate in government contracts and supply chains.
Aspirations are fast converging across urban and rural India, and better access will transform this intent into actual spend which translate into trade / manufacturing. How do you see the impact on MII?
The convergence of aspirations can be a catalyst for inclusive growth, innovation, and a vibrant manufacturing ecosystem. Policymakers, industry leaders, and local communities must collaborate to harness this potential effectively.
Nitin Joshi: The convergence of aspirations across urban and rural India indeed holds significant implications for the ‘Make in India’ initiative. Let's explore how this transformational shift might impact the program:
Increased Domestic Demand: As aspirations translate into actual spending, the demand for goods and services will rise. This surge in domestic consumption can drive manufacturing growth, encouraging more companies to produce within India.
Diversification of Manufacturing Sectors: Traditionally, "Make in India" has focused on sectors like automobiles, electronics, and textiles. With increased spending, there's an opportunity to diversify into newer areas such as renewable energy, healthcare devices, and consumer electronics.
Rural Entrepreneurship and Skill Development: Rural aspirations can fuel entrepreneurship. Skill development programs can empower rural youth to participate in manufacturing and contribute to the ‘Make in India’ vision.
Infrastructure and Logistics Improvements: As spending patterns shift, there will be a need for better infrastructure, logistics, and supply chain networks. Investments in these areas can enhance the ease of doing business and attract more manufacturing investments.
Digital Transformation and E-Commerce: Urban-rural convergence is closely tied to digital connectivity. E-commerce platforms can bridge the gap, enabling rural consumers to access products and services, thereby boosting local manufacturing.
Sustainable Practices and Circular Economy: As spending increases, there's an opportunity to promote sustainable manufacturing practices. Circular economy models can reduce waste and enhance resource efficiency.
While domestic demand is vital for sustainable growth, we all know that the real scales and mass production shifts happen when we go cross-border big time. How can India leverage MII to increase our International trade more?
India needs a multifaceted approach to grow our international trade capabilities and expand our trade network.
Subodh Nagarsekar: Increased disposable income coupled with rapid urbanization is prompting people to spend more on household appliances. India therefore is experiencing a surge in demand for computers, mobile phones, television sets and other electronic & kitchen appliances. The Make In India initiative is giving a further push to manufacturing of these products locally. In the last two Union Budgets, the government has reduced or exempted taxes on certain components and parts to bring down the cost of manufacturing. Apart from these, reduced customs duties on import of electronic items are helping India compete with China and Vietnam as a low cost manufacturing destination. India can certainly boost exports of mobile phones and other electronic equipment to other parts of the world.
Ravikant Parvataneni: That’s definitely going to help us a lot. While India is going to be the biggest consumption market, the consumption patterns will remain relatively lower. In that case, our thrust on boosting exports will only help us reach our ultimate vision of $5 trillion economy in the desired timeframe. Exports also help us understand global market dynamics, latest technological insights, consumer behavior, etc. As profitability gets a boost by servicing global clients, our entire economy gets a big boost. If we are able to strike the right balance between catering to the domestic demand and exports, we will be able to achieve our target much faster than we would be able to achieve by just focusing on the domestic market.
Sanjay Desai: We have been doing very well in the last decade or so. As of June 2024, our total exports value will grow by 8% over the year 2023. Using MII as a leverage, India can gain a firm footing in the international market by instituting major initiatives/ efficiencies. Let us look at a few of them.
Create performance leverage or advantage using the latest technology and adopting international quality standards.
Develop dedicated Export Hubs and special economic zones to facilitate efficient manufacturing and export processes.
Integrate with global supply chains using our excellent manufacturing capabilities and availability of skilled labour.
Build a global brand by promoting Indian made products for foreign brands which will enhance our manufacturing image in the international market.
Adopt sustainable standards which are common across the globe in manufacturing / storage and distribution. This will cater to the ever-increasing diaspora of eco-conscious customers.
Technology-enabled new business models will leverage our domestic consumption. What will be the impacts of such new models taking shape in the next 5 years?
India's technology-driven business transformation will unlock the value of data, exploit emerging technologies, and drive sustainable growth across various sectors.
Subodh Nagarsekar: India is one of the fastest-growing economies in the world. By 2030, it is on course to witness a 4X growth in consumer spend. India is slowly moving towards Intelligent manufacturing using technologies like Artificial Intelligence (AI), Machine Learning (ML) or IoT. India will witness huge changes in domestic consumption patterns over the next 5-10 years. For instance, IoT-enabled home automation systems can help users save on energy bills by automatically turning off lights and appliances when not in use. Similarly, smart washing machines can optimize water usage based on load size, reducing water wastage and cutting down on utility bills. This will drive a surge in demand for technology driven electronic equipment. Another sector which may benefit hugely from AI is the healthcare industry. Diagnosis and path to treatment may not need medical experts. AI may help faster development of life saving drugs at low cost. Healthcare may therefore become more affordable in rural areas. The other two industries which will be driven largely by technology are the Education Sector and the Automobile Industry. People may spend more on highly sophisticated vehicles. Education sector will open out by personalized Learning processes or customized curriculum, thereby making higher education more affordable to Indian households.
Sanjay Desai: As India is moving up the scale in IT / Hardware / Technology, new models of monetization are being developed. These models will transform various sectors, driving growth, efficiency, and consumer satisfaction. This transformation will have profound impacts on India's domestic consumption over the next two/ three decades. The current Govt is fully committed to support these technological advancements to ensure their positive impact on the economy and society. Let us visit a few key impact bullets!
Technology enabled educational growth – Covid-19 taught all of us that everything can be moved to online, for example online education platforms. These platforms are providing learning opportunities, enhancing skills and employability, in urban as well as rural India.
New models of monetization in healthcare – Telemedicine and digital health platforms are providing greater access to healthcare services, improving health outcomes, and driving demand for health-related products.
Start-up ecosystem – India has become home to many millions of start-ups in less than a decade. Technology is making it easy to enter the markets, reducing entry barriers each year for young start-ups. This growth in the start-up eco-system is driving innovation, leading to development and business models.
Alternate service models – Alternate service models are rising fast which are asset-light and they operate as either Pay-Per-use or subscription-based charges. These models have become popular, offering consumers continuous access to services while ensuring steady revenue streams for businesses.
Nitin Joshi: The emergence of technology-enabled business models in India is poised to have significant impacts over the next five years. Here are some key trends and potential effects:
Digital Transformation Acceleration: Since the pandemic began, businesses have rapidly adopted digital solutions. This acceleration has been a catalyst for engaging customers, empowering employees, optimizing processes, and transforming products online. Expect continued investment in digital technologies, including cloud computing, data analytics, and automation.
Digitization and Smartphone Penetration: India is one of the fastest digitizing economies globally, with half a billion internet users (expected to double by 2025) and 350 million smartphone users (expected to triple by 2025). This digitization wave will enable new business models, enhance customer experiences, and drive innovation.
Business Model Innovation: Indian companies need to transition from founder-led approaches to implementing professional processes and devising new business models. Innovations in supply chain, logistics, and warehousing will play a crucial role in sustainable growth.
Revenue from Digital Business Models: Approx. 60% of Indian enterprises' revenue is expected to come from digital business models in the next three years. Digital disruption is essential for enhancing customer satisfaction, boosting revenue, and fostering innovation.
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