In today’s manufacturing world, automation is an imperative to propel industrial growth for scalability, productivity, repeatability, consistency & overall cost competitiveness.
Opportunities and challenges are inherent in India’s manufacturing sector. It is poised to grow exponentially to reach US$ 1 Trillion by 2025 and rank among the top three growth economies and manufacturing destinations of the world by 2020. The Government of India’s stated ambition is to raise manufacturing’s contribution to 25% of GDP by 2022 and to create 100 million jobs in the coming decade.
However, the Manufacturing Sector has challenges to overcome. A significant issue is that manufacturing in India tends to be labour intensive and the labour laws are not conducive to combat global competition and achieve a high level of productivity. On an average, it is nearly four and five times less productive than companies in Thailand and China, respectively. In the last two decades, China captured 45% of global growth in manufacturing, with India accounting for a paltry 5%. Even larger manufacturing organizations in India do not return their cost of capital as the wage to productivity ratio is significantly low.