Geetanjali Kirloskar presented her insights about Indian manufacturing transformation at the 20th CII Manufacturing Summit 2025. She advocated for TQM and Kaizen practices alongside robotic AI integration, MSME empowerment, sustainability promotion, and skill development improvement. The measures she outlined would enhance operational efficiency and reduce defects to make India a top manufacturing nation globally by 2047.
The Indian manufacturing industry represents approximately 17% of India’s $3.5 trillion GDP through its $600 billion contribution to the economy. The vision of Viksit Bharat by 2047 requires the manufacturing sector to expand substantially because it needs to produce an $8 trillion manufacturing economy while contributing more than 25% to the GDP to reach the $32 trillion target. By 2035, India aims to reach a $10 trillion economy with at least 20% of this coming from manufacturing which would amount to a $2 trillion sector. The manufacturing space requires strategic reforms and accelerated growth because this sector presents an outstanding expansion opportunity of more than 200%.
A global supply chain transformation provides India with a chance to develop into a vital regional distribution center. Chinese businesses have launched local supply chain systems throughout India with a special focus on electronic components for mobile phones. Significant work needs to be done to boost manufacturing production levels to fulfill the established targets. India must direct its economic development toward manufacturing just like China because services currently dominate the country's growth. The manufacturing industry of India needs to improve productivity while producing high-quality goods at affordable prices to gain substantial market share in private final consumption.
India should study the manufacturing approaches that Japan has perfected because they deliver exceptional efficiency along with productivity and quality standards. Indian manufacturers have achieved learning and implementation of Total Quality Management (TQM) and Kaizen principles through their joint ventures and partnerships with Japanese companies. These improvement techniques based on continuous and incremental modifications lead to operational efficiency gains between 30% to 50%. TQM embeds quality into all production steps which reduces defects by more than 60%, making Japan a worldwide leader specifically in the automotive and electronics sectors.
The Toyota Production System (TPS) demonstrates lean manufacturing principles through its reduction of waste, its optimization of inventory systems, and its enhancement of operational effectiveness. The implementation of just-in-time (JIT) production enables manufacturers to lower their inventory expenses while keeping their operational flexibility high. Under lean manufacturing principles, organizations achieve maximum resource use and time optimization that generates 50% cost savings along with 75% defect elimination. The Toyota Production System operates as more than a production system because it functions as a cultural change initiative that starts from the shop floor before reaching every corner of the organization.
The role of automation along with robotics continues to expand its influence on manufacturing capabilities. Japan demonstrates robotic applications that enhance human performance while boosting manufacturing speed by using 397 robots for every 10,000 workers. The current rate of robot employment in India stands at 25 robots for every 10,000 workers. AI-driven robotics implementation in manufacturing operations will establish a technology-based system that supports human employees to achieve better efficiency. The manufacturing industry is forward because of emerging technologies along with sustainable solutions and new-age industrial developments. India can become the leader in manufacturing transformation by developing next-generation production sectors.
The expansion of the EV market demands a strategic growth focus on EV manufacturing facilities. The production of EV batteries faces difficulties because most cells together with motor controllers and magnets come from China. The establishment of large projects in India provides a promising boost to domestic EV manufacturing while decreasing foreign dependence on Chinese imports. Green hydrogen holds promise to decarbonize multiple industrial sectors which include transportation and heavy manufacturing operations. Japan currently leads the world in developing and storing large amounts of hydrogen. India should develop manufacturing plants and supply chains that are ready to use hydrogen. The government's 2030 goal to create 5 million metric tons of green hydrogen per year will open new business horizons for manufacturers.
The manufacturing sector of India will achieve success through innovation and smart manufacturing approaches. Industry 4.0 technologies enable smart factories to function as essential platforms for improved efficiency and quality performance. The smart factory market worldwide is projected to achieve $244 billion by 2026 so India needs to establish a significant market presence in this industry. India needs to solve its talent recruitment problem in manufacturing because students from lower-income groups in tier 2 and tier 3 towns choose arts and humanities instead of technology-intensive education because of its high cost. The manufacturing sector needs both stronger incentives and policy changes to support STEM education because it requires a constant stream of highly skilled workers.
The key elements that will propel India’s manufacturing evolution stem from MSMEs and startups with innovative ideas and the global expansion mindset of corporate entities. The key challenge for MSMEs is obtaining access to capital because this capital is essential for conducting high-cost manufacturing operations. MSMEs now benefit from improved banking regulations that enhance their loan opportunities thus speeding up their business expansion. The process of supply chain decarbonization by large OEMs becomes straightforward for their tier-1 suppliers. The lack of capital and limited human resources becomes a significant barrier that prevents tier 2 and tier 3 suppliers from overcoming their challenges. The development of a sustainable manufacturing ecosystem depends on filling the existing gaps in the system.
India needs to establish mechanisms that will enable all components of its manufacturing sector to comply with emerging environmental requirements. Larger corporations dedicate their attention to decarbonizing their supply chains while smaller suppliers and MSMEs need equal capability to fulfill these requirements. The adoption of sustainable practices by MSMEs becomes possible through incentives coupled with training and financial support so they can effectively support India's green manufacturing goals.
The manufacturing sector requires human resource development as its fundamental growth driver. Manufacturing requires prioritizing value addition for each person both inside the IT sector and within the industry. Manufacturing organizations can achieve salary parity or superiority compared to IT sector salaries by implementing efficient processes, maximizing operational efficiency, and optimizing working capital management. The manufacturing sector requires ongoing training programs and skills development for all employees along with active support for female leadership at decision-making levels within operations.
India must dedicate efforts to improve technical education and vocational training programs because this will prepare its workforce to handle the changing requirements of the modern manufacturing industry. Students from lower-income backgrounds avoid science and technology education in tier 2 and tier 3 towns because the related educational expenses are too expensive. A concerted movement needs to support STEM education while providing scholarships and lowering the cost of technical education to reach more people in society.
The world can position India as its main manufacturing center through sustainable and innovative approaches and balanced economic development. India can build its position as a worldwide manufacturing leader by using its big domestic market and dedication from big enterprises and MSMEs. India can fulfill its vision of Viksit Bharat by 2047 through best practice adoption technological integration and continuous improvement culture development.
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