Indian Manufacturing Industry is Ready for a Make Over

16 December 2016 4 MIN READ

The Government of India (GOI) is taking certain key steps to increase the manufacturing output from the current 16 per cent to 25 per cent of GDP by 2025.

In addition to a government push, there are other trends that are creating the opportunity for Indian manufacturers to flourish.

Market Size

  • According to the recent study by Mckinsey and Company, the Indian manufacturing industry has the potential to touch US$1 trillion by 2025.
  • It is expected that the manufacturing industry will create up to 90 million domestic jobs by 2025.

Manufacturing Trends

Now a days, technology is contributing towards manufacturing industries and helping it to stay pertinent in these changing times. Following are the key trends that can impact the manufacturing industry.

Adopting ‘SMAC Stack’

SMAC – stands for Social, Mobile, Analytics, and Cloud is creating endless possibilities for the Manufacturing industry. For example,

  • Use of smart devices to enable faster, even instant communication, bringing down the gap between an event and response, which can be critical to keep manufacturing at its maximum efficiency.
  • Social media can be used by manufacturers, specially startups or small-scale manufacturers to reach out to their target audience with much lower investment as compared to traditional means. There are many social platforms, especially those related to crowd-funding that can help manufacturers find customers, who are also willing to invest in their products.
  • Analytics aids management in decision making, especially, in products where telemetric information is captured.
  • Cloud enables any manufacturing in numerous ways including making use of cloud based services to enhance / enable their processes without an upfront prohibitive investment.


Manufacturers are essentially trying to make their products “smart” by putting various sensors, which connect back to the manufacturers’ cloud. Just as an example, imagine, the sensors in your air conditioner track when it needs servicing and relays that information to you via the manufacturer’s cloud.

Government driven impetus

This impetus is being created in two ways:

  • Products that are purchased through government funding. For example, purchase defense equipment, infrastructure equipment for roads, railroads, etc. For such products, the GOI is inviting foreign companies to invest and setup at least part of the manufacturing units in India if they want to win the contracts.
  • Consumer demand driven products, such as smart phones, automobiles, solar panels, etc. For such products, the GOI is framing policies to make it more viable for foreign manufacturers to set up local units or partner with Indian companies and manufacture in India itself.


Indian Manufacturing is ready for a makeover because India has the necessary manpower, support from GOI via its ‘Make in India’ initiative as well as adoption of SMAC and IOT. The manufacturing industry is expected to grow at a healthy pace as well as modernize towards hi-tech product manufacturing.

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About the author

Nidhi Batra

Nidhi Batra is a marketing and brand communication professional with 10 years of experience working in the dynamic B2B marketing environment. She strategizes, writes, reviews a variety of content for demand generation and sales support activities. Having a Master’s in English from Delhi University, she knows how to navigate her readers on insightful journeys with her SAP published blogs and thought leadership content.

Follow me on LinkedIn to stay updated on the latest industry trends & technology update

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