If Indian economy must grow manufacturing is a sector that cannot be left behind, which is why the Indian government’s ‘Make in India’ initiative now intends to boost it such that it warrants a share of 25% in India’s GDP. Investment in Indian manufacturing sector has seen a surge in both domestic and foreign locations. The investments in fixed assests (Gross Capital Formation) was at USD 405.88 billion during H1 of 2019-20.The sector is also receiving the required momentum from India scoring a better rank on ‘ease of doing business index’ and working fiercely towards improving its position in the ‘ease of trading index’. It will not be long before that the growth story in manufacturing industry will kick in and we shall get close to our global competitors.
Main component behind the growth will be the development of smart factories which shall function on ‘Internet of Things’. Connecting the physical assets and machines through technology and helping them interact with each other without manual intervention will cause heightened efficiency and improved resource management. Digitalization will help the industry produce better quality products, do away with manual inefficiencies, utilize capacity optimally, meet deadlines and create a fool proof environment for growth. Higher local demand and increased FDI’s will further catalyze the process.
The manufacturer are however pulled back by risks like unavailability of skilled labour, employee retention risks, risk of injury in plants and factories, liability risk, loss of equipments, cyber risks , global instability, risk arising due to technology taking over manual and many more. These risks are necessary to be controlled and mitigated through apt insurance policies and expert help is inevitable in this matter.
