In In his article published in the Economic Times, Dilip Sawhney emphasizes the crucial role of a robust manufacturing sector in bolstering a country’s economic standing. He discusses strategies for India to advance towards global manufacturing leadership, underscoring the significance of fostering a conducive environment for industrial growth and innovation. Sawhney’s insights provide valuable perspectives on the path towards enhancing India’s position in the global manufacturing landscape.
The article explores the current landscape of the automotive industry, particularly focusing on the accelerating adoption of electric vehicles (EVs) driven by climate change legislation and the need to reduce reliance on fossil fuels. According to the Global EV Outlook 2022 by the International Energy Agency (IEA), the sales of electric cars have exceeded 10 million globally, constituting 14% of all new car sales, with projections indicating that 54% of new vehicle sales will be electric by 2040.
In India, the government’s initiatives such as the production linked incentive (PLI) scheme, tax benefits, and the ‘Go Electric’ campaign have spurred EV manufacturing. However, meeting the growing demand requires scaling up production with the latest technologies, emphasizing the role of smart manufacturing. Smart manufacturing, defined as the integration of advanced technologies to enhance traditional manufacturing processes, offers solutions to improve efficiency and reduce operational costs. McKinsey suggests that smart project management can accelerate time to market by 10% to 40%.
Furthermore, the implementation of automation and digital transformation practices can optimize production schedules and mitigate risks. However, the adoption of smart manufacturing faces challenges such as cultural resistance to change, lack of skilled manpower, and cybersecurity concerns. Nevertheless, embracing smart manufacturing is crucial for meeting the rising demand for EVs and achieving sustainability goals.