India is already amongst the world’s leading producers in many key sectors. Dr Pawan Goenka, Former Managing Director & CEO, Mahindra & Mahindra Ltd shared his perspectives and forecast of the different sectors of India and how can it be a global supplier at AIMA’s Management Café.
While India is already amongst the world’s leading producers in many key sectors like automotive, metals, and pharmaceuticals and is being seen as one of the high prospects for the global supply chain for almost everything, AIMA had organised the 3rd Management Cafe live session with Dr Pawan Goenka, wherein he shared his acute perspective, analogies, and forecast for the different sectors in India.
With all said and done about India, does the world look at India as a value chain supplier? The support of the Government for making India a global supply chain has been phenomenal from the time the Atmanirbhar Bharat phrase was coined. The involvement of Bureaucracy has been something to reckon with. India however, is still lagging behind and it has to “run” to catch up and has to work hard to get global recognition.
India has set a target to achieve a $1 trillion manufacturing economy and subsidies like PLI (Production Linked Incentive) Scheme have only acted as enablers in working towards it. So, will the target be achievable? If you want to be a manufacturing “biggie” then the manufacturing deliverables have to go beyond the domestic demand and the market should not be localised but has to cater to a global market. The areas that India needs improvement in are; quality, technology and cost competitiveness.
As it has been said that in the Indian corporate system, the R&D (Research and Development) sector is not doing very well, what are the things that the sector can do to polish its act? The kind of research that is being done in academia is of fairly high quality and fairly practical and India needs to amend that. The faculties in the Academia do want to be involved with the Industry. The start-up ecosystem is bridging the gap between what Academia does and what the industry wants. Besides, start-ups are willing to take the risk with technology.
India has a separate Skill Development Ministry, however, what does the Labour Industry need to do for improving itself? Dr Pawan Goenka said that Indian Labour is quite hardworking, but the processes it is involved with are not productive. The Indian Labour Management is very pragmatic but they need to think of ways of upskilling
Finally, he said that the Manufacturing Industry needs to acquire the best in technology to be a global supplier and strengthen its weak ecosystem. However, the most important thing is to scale up. Dr Pawan Goenka also said that the MSME (Ministry of Micro, Small and Medium Enterprises) is also hailed poorly, but they are the backbone of the Manufacturing Industry. The MSMEs have to become strong in technology, quality and processes yet again.
Watch the full session here- https://www.youtube.com/watch?v=z_ySh8ihLv8