Trends in Indian Manufacturing Industry
                     Trends in Indian Manufacturing Industry
Neel Rao
Writes on Reitz India top quality forced draft fans
 & Reitz India primary air fans
The manufacturing industry of India has adopted various innovations, especially in 
the last decade.  While it is the Indian IT industry that is known worldwide.  Many 
Indian industry segments have updated their manufacturing facilities and processes 
in a very dynamic manner.
The goal of the Government of India is to increase the manufacturing industry’s 
contribution to 25% of GDP in the next two years.  Apart from that, the ‘Make in 
India’ initiative of the Government of India aims to strengthen the country’s position 
as a leading manufacturing destination.
The Indian manufacturing sector has been on a path of growth in the last few 
decades. Many positive trends are observed in the industry, let us look at a few of 
the most important ones.
Increased Focus On R&D
The country’s R&D expenditure, when viewed as a GDP percentage, has not changed 
in the recent past. The corresponding figure keeps varying between 0.6 and 0.7 
percent. Here, it’s interesting to note that there is a growth in both GDP and also the 
money allocated towards R&D. You have quite a few private players in the Indian 
market that have made a mark for themselves.
Even in the post-COVID environment, the Indian manufacturing industry has 
responded with both agility and speed in manufacturing personal protective 
equipment(PPE), ventilators, and testing kits.
In the two-wheelers segment,  automobile companies have broken partnerships 
with international companies but still able to do in-house R&D design, market, and 
manufacture innovative products. Even in MNC companies, the R&D is happening 
within India.
B2B2C Model
The conventional approach of Indian manufacturers was to go with the business-to-
business (B2B) model. Recently, there is an increasing number of manufacturers who 
are moving away from the old model  and choosing the business-to-business-to-
consumer (B2B2C) model. The B2B2C model is having many advantages. In the 
B2B2C model, instead of selling at wholesale prices, a manufacturer carries out sales 
based on manufacturer’s suggested retail price (MSRP), which contributes to better 
profitability.
The manufacturer can prototype, test, and sell the products in a relatively shorter 
period. In the older method, there is an abnormally long retail sales cycle. The 
B2B2C model facilitates businesses in gathering customer feedback without any 
filters, this feedback is vital for developing better products. This helps not just in 
improving the quality of the products but also in developing good and long term 
relationships with customers. 
Automation
Adoption of automation is a thing that is slowly but steadily increasing in the 
manufacturing sector of India. There are a few factories where you can see industrial 
robots and workers involved in the manufacturing operations.
However, the usage of automation in India is still quite low, when compared with the 
manufacturing industry in developed countries. Yet, market experts predict that 
soon, there shall be a drastic increase in automation in Indian manufacturing 
entities. There are many advantages to automating production processes. 
Embedded Systems
Earlier, the sole focus of manufacturing used to be on full utilization of manpower 
and machinery. The competition in many markets is very strong between the various 
companies. To sustain and thrive in the market place there is a need for a superior 
product. Manufacturing processes are now carried out based on embedded 
information to produce products of superior quality.
ERP (Enterprise Resource Planning) Systems
There is a consistent rise in the number of manufacturers using ERP systems. As a 
result, the entire business operations are getting done in a superior manner and 
there is access to crucial information in real-time.
Artificial Intelligence (AI)
Usage of artificial intelligence has begun in the manufacturing sector of India. But, 
there is still time before AI achieves its full potential. Abundant opportunities are 
going to be available for both consumers and also new players, in the sphere of AI.
In the not-that-distant future, technologies like the Internet of Things and Big Data 
shall be commonplace in the Indian manufacturing industry.  Innovation and product 
superiority by one company is being matched by the competitors. Matching the 
quality by producing at a lower price had been the main strategy in the past. While 
this may be helpful with commodity products, for other products it is not helpful.
To be successful in the contemporary markets, manufacturers are constantly 
exploring new methods for manufacturing superior products
About REITZINDIA
Reitz India has set a benchmark to deliver high quality fans for heavy duty industries 
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Reitz offer idealistic Centrifugal Fan and Centrifugal blower design that can be used in 
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Thank you for spending your precious time in reading this article!