12th May 2025 (12 Topics)
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A Fundamental Reset to Drive Manufacturing Growth
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Context
There is urgent need for India to reform its manufacturing sector amid global shifts toward innovation-driven production, low productivity levels, and lagging R&D, calling for structural reforms in education, industrial infrastructure, and policy.
Structural Challenges in Indian Manufacturing
- Low Value Addition & Productivity: India’s per capita manufacturing value addition is USD 0.32K vs global average of USD 2K; productivity at USD 8.9K vs USD 32K globally.
- Global Comparison: India’s total value-added is USD 461B, much lower than China (USD 4,658B) and USA (USD 2,497B), reflecting limited competitiveness.
- R&D Productivity Gap: Productivity linked to R&D shows India lagging behind the US (USD 159K), Germany (USD 103K), Taiwan (USD 79K), and even China (USD 21K).
Reforming Technical Education for Manufacturing
- Admission & Curriculum Reform: Current entrance systems overemphasize difficulty; shift needed toward creativity, fundamentals, and problem-solving.
- Practical-Oriented Training: Over-reliance on theory and grade-point culture limits innovation; need for 50% curriculum focus on practical work.
- Infrastructure for Skill & R&D: Advanced labs, workshops, and in-campus assembly lines essential to build product development capability.
Strengthening Core Engineering and Innovation Ecosystem
- Revival of Core Engineering Streams: Emphasis needed on traditional engineering fields (civil, mechanical, metallurgy, textiles) over just AI/IT.
- Manufacturing Infrastructure: Call for state-specific manufacturing parks with design tools, testing facilities, and plug-and-play capacity.
- Public Investment in R&D and Infra: Proposal to raise R&D spend to 2% of GDP and allocate an additional 1% for industrial infrastructure.
Practice Question
Q. Despite policy interventions like 'Make in India', Indian manufacturing has not achieved global competitiveness. Examine the structural and institutional reforms needed in technical education, industrial infrastructure, and R&D to transform India into a high-productivity manufacturing economy.More Articles
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