Make in India Initiative: Accelerating Automation in Manufacturing
Published on : Friday 01-03-2024
How this government-led program is driving the adoption of automation technologies in the manufacturing sector.
The manufacturing sector in India is one of the industries that contributes a lot to the country’s GDP. It accounts for around 17% of India's GDP. The industry has emerged as one of the high-growth sectors in the country. Many reports suggest that India can export goods worth US$1 trillion by 2030 and become a major global manufacturing hub. But how would it be possible? What role does the 'Make in India' initiative play towards making the country a manufacturing hub?
In this article, we will explore the influence of the 'Make in India' initiative on the adoption of automationtechnologies in the manufacturing sector. How it is going to enhance production capabilities and global competitiveness. So let’s get started.
‘Make in India’ Initiative and Its Impact
The Government of India has taken various policy initiatives to improve the country’s economic situation, and 'Make in India' is one such initiative. Launched in September 2014, the objective of the initiative is to facilitate investment, encourage innovation, develop best-in-class infrastructure, and make India a hub for manufacturing, design and innovation.
Since its launch, the 'Make in India' initiative has made significant achievements. Currently, it focuses on 27 sectors implemented across various ministries and departments, central government and state governments.
One of the benefits of the 'Make in India' initiative is that it will create jobs in the country to meet the rising demand for employees in the manufacturing sector. The influence of the initiative can be seen in the electronics, defence sub-assemblies and manufacturing of intermediaries for pharmaceutical domains.
Other impacts of the 'Make in India' initiative include:
· A decrease in the unemployment rate that will affect the government, as fewer unemployment benefits will be given out than earlier.
· The GDP has increased by 7.2% in 2017-18.
Reports claim that India has an immense opportunity to boost its share of global manufacturing exports. The government is seeking to raise manufacturing to 25% of GDP from 17.7% by 2025.
Investments to influence adoption of automation technologies in manufacturing
It has to be said that accelerated investments can significantly aid India’s global manufacturing hub ambitions as it attracts investors from across the globe. As per a report from PIB, the year 2021-22 recorded the highest-ever FDI at US$83.6 billion. This FDI has come from 101 countries and invested across 31 UTs and States and 57 sectors in the country.
'Make in India' initiative in manufacturing sector
The 'Make in India' initiative has been launched to foster the country as a global manufacturing hub by encouraging both domestic and foreign companies to manufacture their products in the country. The initiative has contributed a lot to influencing the adoption of automation technologies in the manufacturing sector. Let us have a look at some ways how the initiative has created an impact.
Enhanced Competitiveness: The 'Make in India' programme emphasises the need for increased competitiveness in manufacturing. It has sparked competition among companies to leverage automation technologies. Automation technologies, from robotics to advanced manufacturing processes, can help improve a company’s efficiency, lower production costs, and enhance overall competitiveness.
Productivity Improvement: Automation technologies play a vital role in boosting productivity by streamlining manufacturing processes and minimising manual intervention. Many businesses in India nowadays have aligned their processes with the 'Make in India' goal of creating a more efficient and productive manufacturing ecosystem.
Global Standards: The 'Make in India' initiative has attracted foreign direct investment (FDI) and encouraged multinational companies to set up their manufacturing units in India. It is essential to adhere to global quality and efficiency standards.
Upskilling and Workforce Development: The initiative recognises the importance of upskilling the workforce to meet the demands of modern manufacturing. Automation technologies require a skilled workforce to operate and maintain them, leading to an increased emphasis on training programs and skill development initiatives.
Technology Transfer: The 'Make in India' initiative encourages technology transfer and collaboration between national and international companies. As part of this collaboration, the adoption of automation technologies may be facilitated through the transfer of knowledge and expertise from global players to domestic manufacturers.
Focus on Key Sectors: The 'Make in India' campaign identifies key sectors for development, including electronics, automotive, aerospace, and defense. These sectors usually involve complex manufacturing processes where automation can have a significant impact on efficiency and quality.
Incentives and Policy Support: The government has introduced various incentives and policy support measures to encourage the adoption of automation technologies among manufacturers in the country. These include tax benefits, subsidies, and regulatory reforms aimed at facilitating a smoother transition towards automated manufacturing.
Since small and medium manufacturing enterprises in India have been the backbone of the country’s economy over the past few years, the 'Make in India' initiative provides a conducive environment for them to adopt automation technologies.
Simultaneously, the success of the 'Make in India' initiative lies in the adoption of technology. Harnessing the potential of technology could enhance the efficiency, quality, and cost-effectiveness of manufacturing, making it an attractive destination for foreign investors. Additionally, this would lead to numerous job creations, contributing to making India a manufacturing hub.
The way ahead
In recent years, we have seen how India and the manufacturing sector in the country have gained tremendous growth despite a worldwide slowdown (caused by the COVID-19 pandemic). In this scenario, initiatives like 'Make in India' can act as a pivotal catalyst in accomplishing the vision of making India a global manufacturing hub.
Industry experts suggest that India can lead the manufacturing sector in the coming years and it is going to be very fast. According to the Colliers report, the country’s manufacturing market is set to reach US$1 trillion by 2025-26, led by Gujarat followed by Maharashtra and Tamil Nadu.
With a strategic investment in automation technology, Industrial Automation Magazine believes that manufacturers can enhance the quality, efficiency, and cost-effectiveness of the manufacturing sector.
References
2. https://pib.gov.in/PressReleasePage.aspx?PRID=1861929
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