A fundamental reset to drive manufacturing growth, Pg8

• The global manufacturing landscape is shifting towards high-tech, innovation-driven production, demanding advanced R&D, skilled manpower, and efficient logistics.

• India’s manufacturing challenge lies in improving productivity and value addition per worker, which is currently lower than global averages.

• A fundamental reset in education, R&D, infrastructure, and entrance examinations is required to create a skilled workforce aligned to industrial needs.

• Emphasises building domain-specific ecosystems similar to Silicon Valley for hardware, AI, electronics, pharma, and semiconductors.

• Current Gaps in India’s Manufacturing:

  • India's per capita value addition ($0.32K) and productivity ($8.9K) lag behind countries like China ($4.6K; $21K) and the U.S. ($2.4K; $159K).

  • Existing schemes like NMCP (2005) and Make in India (2014) provided policy push but outcomes remain limited.

• Educational Reset Suggested:

  • Move beyond rote-learning exams; introduce project-based, lab-centric education that fosters creativity, innovation, and skill application.

  • Early emphasis on high-order thinking and design engineering is essential.

• Demand for Ecosystem Thinking:

  • Calls for multi-pronged industrial ecosystems with innovation clusters and robust infrastructure.

  • Advocates state-specific manufacturing parks with plug-and-play labs, testing units, and advanced measurement & certification systems.

• Build Core Engineering Strengths:

  • India must invest in core branches like civil, mechanical, chemical, textiles, and materials engineering, not just software and AI.

• Value Addition (K/worker): Measures efficiency in manufacturing per unit of human resource.

• AI and Semiconductor Ecosystems: Essential for future technologies and strategic sectors.

• R&D Spending: India’s GERD (Gross Expenditure on R&D) is only ~0.65% of GDP; needs to rise above 1% to match global averages.

• A reset in manufacturing policy can lead to job creation, enhanced exports, and global competitiveness.

• Aligning education, infrastructure, and innovation policies will ensure resilient, future-ready industries.

• Reducing dependency on imports and building capacity in critical sectors like electronics and AI strengthens strategic autonomy.

Mains Mock Question:

“To boost manufacturing growth in India, a fundamental reset is required in education, infrastructure, and innovation ecosystems.” Discuss with examples and policy suggestions.