By Sanjay Kalirona, CEO and Co-founder, Gizmore
As the globe continues to combat Covid-19, we are all becoming aware of the depth and scope of the changes required to establish a new normal. Prime Minister Narendra Modi introduced the Atmanirbhar Bharat Abhiyan on May 12, 2020, with the goal of making India self-sufficient in the global supply chain. ‘Atmanirbhar’ (or self-reliance), which emerged from the shadows of the ‘Make in India’ campaign, has captured the imagination of Indian businesses and given them the much-needed impetus to unite around a renewed narrative for change.
The self-reliance effort of India Inc is built on five pillars: economy, infrastructure, technology, vibrant demography, and demand. Given manufacturing’s influence on all five and its role as the backbone of any economy, self-reliance will result in increased GDP contribution, increased employment opportunities, and long-term growth that is sustainable. As part of the Aatmanirbhar Bharat Abhiyaan, the Central Government approved a INR 1.97 lakh crore budget for the ambitious Production-linked Incentive (PLI) scheme, which covers ten sectors.
Self-reliance – The need of the hour
In November 2020, the government established a 22-member Inter-ministerial Committee to bolster the Capital Goods sector so that it can contribute to the national goal of reaching a US$ five trillion GDP (inclusive of US$ one trillion from the manufacturing sector). The government has already established a goal of raising the manufacturing sector’s contribution to the Gross Domestic Product (GDP) to 25 percent by 2025. The agenda for the Capital Goods sector includes technology development, development of mother technologies, global value chains, skill development in accordance with global standards, and improvement of customs duties procedures to make the Indian manufacturing sector globally competitive. The objective is to make India the global manufacturing centre.
Seeking to allay fears that this may mean India becoming a closed economy, NITI Aayog Vice-Chairman Rajiv Kumar explained ‘Self-reliance is not the same as self-sufficiency. He had gone on to that that it’s critical to realise that atmanirbhar (self-reliance) refers to a globally competitive economy that is becoming increasingly connected with global trends and “Make in India for the World.”
The intention of Atmanirbhar Bharat Abhiyan is also to make India a trustworthy global supply chain hub. As a country, it is important for us to have a robust supply chain and its need was felt even more during the pandemic. Moving towards self-reliance will enable us to have a more efficient supply chain and cut down our dependence on other countries.
Industry 4.0 for Make in India and Atmanirbharta
As India moves closer to achieving ‘Atmanirbharta,’ or self-sufficiency, the country’s manufacturing policy must be rethought. We must increase the speed of indigenisation by taking a quantum leap in our approach in order to develop a self-sufficient manufacturing business on a local scale. The future of manufacturing in India and around the world will be shaped by improved data and connectivity. The convergence of multiple technologies to digitise manufacturing, value creation processes, and related industries characterises the Industry 4.0 Revolution. Companies can now leverage data from multiple sources, such as connected machines, equipment, IoT sensors, and many others, to transform their existing manufacturing processes to achieve production efficiency on multiple levels and to realise new business models via the digitalization of their existing business operations. Industry 4.0 exists in our globe as Education 4.0, Agriculture 4.0, Shipping 4.0, and Ports 4.0, among others.
India is at an intriguing juncture in its manufacturing development. The future of manufacturing in India will be determined by the rapidly expanding usage of automation in production and India’s innate software expertise. Digital technologies are essential for India to reach a US$ one trillion manufacturing GVA within the next five years.
These new technologies must be incorporated into the enterprise value chain and externalised into inter-organizational supply chain networks. By digitising the shop floor, manufacturers of SMBs can obtain numerous immediate and long-term benefits, such as quick production status analysis and error elimination. The long-term benefits include better operational efficiency, quality, and a flexible reporting procedure. The examination of production in real-time using data gathering and visualisation tools as an update of the production status provides a unique viewpoint on the manufacturing process. This offers a greater understanding of the machinery, staff, and process efficiencies. In addition, the linked digital documentation reduces problems such as inaccurate human entries or version control concerns and establishes an efficient digital “approval” hierarchy. These benefits enable any manufacturer to save time and money, while increasing his product’s market competitiveness.
Industry 4.0 for Make in India and Atmanirbharta for the manufacturing sector are both being encouraged by the government, as a manufacturing base provides a stable growth environment (especially when compared to service-based economy). Multiple institutions are already operational under the Samarth Udyog Bharat 4.0 project in order to implement this essential digital transformation in industry. Samarth Udyog Bharat 4.0 is an Industry 4.0 effort administered by the Ministry of Heavy Industry & Public Enterprises, and its primary participants include producers, vendors, and customers.
With the integration of automation and digitalization, Indian manufacturers have the possibility to respond nimbly and effectively to quickly changing demand and new obstacles. The fight to be ‘Atmanirbhar,’ which coincided with India’s 74th Independence Day, is not new the main difference this time is that we have the resources and access to make it happen. Let us use this platform to join the swelling chorus of ‘Voice for local’ and assist India in achieving a US$ one trillion GVA from manufacturing over the next five years, contributing at least 20 percent to the national GDP.
