Manufacturing-Industry-India-Need-Push

Why does the Indian economy need a manufacturing push?

Make in India is a crucial government-led initiative to facilitate investment, foster innovation, enhance skill development, protect intellectual property, and construct world-class manufacturing infrastructure within the subcontinent.

The initiative is a stirring call to action for citizens and business leaders in India and an appeal to investors and partners worldwide. Make in India is much more than a motivational phrase. It is an unparalleled revamp of obsolete procedures and rules.

Make in India and Manufacturing Industry

As the name implies, this initiative aims to foster the development of manufacturing in India, thereby making the country part of several critical industrial supply chains.This in turn, will lead to the development of new jobs, allowing the encashment of the demographic dividend. Prime Minister Narendra Modi has time and again reiterated that this initiative would enable the country to reduce import dependencies and become AtmaNirbhar. Broadly, It encourages corporations to come to India to make things rather than only advertise them.

AtmaNirbhar Bharat is rooted in five pillars: economy, infrastructure, system, vibrant demography, and demand. The economy is one of the five pillars which is directly connected with the Manufacturing Industry as today, this sector accounts for about 17% of the country's GDP.

Why is the manufacturing industry the focus?

Manufacturing accounts for 17% of India's GDP. It has emerged as India's most rapidly expanding sector. India's Prime Minister, Narendra Modi, launched the 'Make in India' campaign to position India as a manufacturing powerhouse and elevate the Indian economy internationally. By 2022, the government hopes to have created 100 million new jobs through this initiative.

In an attempt to reengineer supply chains, especially in the case of key industries, the Indian government has altered regulation to attract greater investment. In defence manufacturing for instance, Foreign Direct Investment(FDI) under the automatic route was raised from 49% to 74% in May 2020.

How does the manufacturing push benefit the economy?

For a net importer like India, developing domestic supply chains for essential and non-essential products is vital. Economists believe that increasing labour productivity is critical for increasing economic growth potential. Other than favouring economic development, it would also reduce the reliance on non-essential imports improving the overall balance of payments. In the current scenario, India imports a wide range of goods, including heavy machinery, toys, and other goods that otherwise would be produced domestically.

Jobs too are a critical reason for the extreme focus being given to boost the manufacturing sector in India. This need has been exaggerated further as a result of COVID-19. Months of strict lockdown resulted in the loss of millions of jobs and the closure of several enterprises. A rapid collapse of the informal sector too has led to the loss of millions of jobs. A robust manufacturing industry has the potential to absorb a large part of the available workforce.

Reengineering Supply Chains

The Coronavirus pandemic (COVID-19) has caused havoc to global industry. It has pushed businesses to rethink risk mitigation measures and change several long-held supply chain management assumptions. There is broad agreement that supply chains need to be reengineered to reduce the possibility of such disruptions being caused in the future.

As a result, India has been presented with a unique opportunity to develop many sectors that till now lacked the installed manufacturing capacity. Additional capacity would not only be integrated into global supply chains, but would also be beneficial in serving the 1.3 billion people that live in the subcontinent more efficiently.

The scale of manufacturing in India

India has a GDP of $2.3 trillion and is the world's ninth-largest economy by purchasing power parity. Compared against the 52% service sector, manufacturing accounts for just 17% of the country's GDP. Historically, in India, very few manufacturing companies focused on the concept of actually making in India, and instead, localised only certain parts of the supply chain. Make in India, changes this. It encourages entrepreneurs to foster innovation, protects intellectual property, and pushes large scale investments into the construction of world-class manufacturing infrastructure within the subcontinent.

How are we helping the mission Make in India?

Lipi strongly believes in the India story. We are amongst the few Indian firms capable of designing, manufacturing, and servicing our entire product line. Our cutting-edge production facilities, along with our in-depth knowledge of new technologies, enable us to meet the growing demands of worldwide markets.

The Make in India initiative is critical for India's economic growth since it intends to capitalize on the country's current talent pool by expanding job possibilities and empowering more prominent industries.

How is India participating in global supply chains?

The recent Quad declaration on collaboration for robust global supply chains is notable. These advancements have opened a once-in-a-lifetime opportunity for India. Large corporations have a chance to explore particular investment destinations by the strategic aims of significant powers. Still, accurate investment decisions are based on rigorous calculations of anticipated earnings and dangers. For the portions of the global supply chains that India wants, it needs to get this calculation right. As a result, sensible industrial policy and investment promotion, like those undertaken by the Make in India initiative, go a long way in improving macroeconomic fundamentals and improving the country’s standing on the ease of doing business index.

What is Contract manufacturing in India? How can it be fruitful for India?

Larger Businesses use contract manufacturing to deal with market demand and cost-effective distribution on a broader scale. As a result of the Make in India initiative, Medium and Small Enterprises within India are likely to benefit significantly. Small and medium-sized businesses (MSMEs) constitute the backbone of a robust national economy. Prioritizing their growth is crucial for the country's future. In India, various companies are getting the benefits of contract manufacturing. It has created several new opportunities for small businesses.

Future of Manufacturing in India

The Manufacturing Sector in India is on the road to becoming internationally competitive. Over the last few years, Indian manufacturers have progressively improved. The unparalleled revamp of obsolete procedures and rules as a result of government initiatives like Make in India, put the subcontinent on the map for global manufacturing. Policies like these are critical to create the best environments for business to develop and compete globally.

Manufacturing-led-growth-in-India

Manufacturing led growth: Is Make in India the way forward?

Make in India is crucial to fostering investment, facilitating growth, enhancing skill development, preserving intellectual property, and developing best-in-class manufacturing infrastructure within the subcontinent. Broadly speaking, it is poised to create positive long term structural changes to the very fabric on the Indian manufacturing landscape.

The Make in India initiative covers under its ambit 25 major manufacturing sectors of the Indian economy including automobiles, IT, chemicals, and electronics. Governmental efforts to increase investment by enabling single-window clearances, increasing FDI investment limits and significantly cutting down red-tapism has been undertaken to maximize on job-creation. The ultimate objective is to make the Indian manufacturing sector self-reliant and competitive in the global market.

The manufacturing sector is vital for job creation and skill development, thereby enhancing productivity and consequently boosting overall economic growth.

Market Size

As per the IBEF report, the Indian Manufacturing Purchasing Managers Index (PMI) reached 48.1 in June 2021 from 50.8 in May 2021.

The manufacturing component of IIP stood at 117.2 between April 2020 and March 2021. In May 2021, the industrial output indices for the mining, manufacturing and electricity sectors stood at 108.0, 113.5 and 161.9, respectively.

According to the latest survey, capacity utilization in India's manufacturing sector stood at 66.6% in the third quarter of FY21.

The rise of the manufacturing sector

Previously a dominant feature in job creation, the agricultural sector, is no longer able to absorb the increase in the labor force. The manufacturing sector has played a remarkable role in the growth and development of any industrialized country. As a result, emerging economies build their growth strategies around manufacturing potential. The share and role of manufacturing in GDP is, therefore, a basic indicator of the significance of the sector in a country's economy.

The Government of India, through the Make in India initiative, aims at strengthening the manufacturing sector by creating the right business conditions to attract large scale investment in into the space.

This has given the manufacturing sector an impetus, and the investments made in infrastructure, healthcare, electronics are already proving to be fruitful. This will help India being seen as a global manufacturing hub for the world.

The lockdown intensified supply chain uncertainties, making organizations rethink and rework their sourcing strategies. Globally, one could see a fast-gaining preference in derricking organizational supply chains by focusing on developing a localized network, specifically in growing markets like India.

Initiatives taken by the Indian Government

In its effort to make India a manufacturing hub, the government has introduced industrial corridors that are designed to ensure efficient manufacturing. Heavy infrastructure investments to better communications and logistics have been critical in integrating India into the global supply chain.

Many innovative practices and research activities are being supported through fast-paced registration systems, and accordingly, the Intellectual Property Rights registration setup has been upgraded.

Many new initiatives have been launched in order to streamline and rationalize licensing rules at the state government level, aligning them with global best practices. The requirement of upgraded skills for industries is being identified, and accordingly, the development of the workforce is being undertaken by several state and national bodies.

Role of Lipi Data

Lipi's state of art manufacturing facility offers manufacturing services for most complex electro-mechanical and sheet metal products. Our competencies in mechanical, electronic and software development are critical in designing mission critical products that have the ability to optimally perform even in the harshest of conditions. Over the years, Lipi has successfully developed unique products and solutions for the global markets.

Way Ahead

India has always been an attractive marketplace for foreign investments in the manufacturing sector. Many consumers electronic brands, automobile manufacturers, amongst others, have set up or are looking to establish their manufacturing base in the country. Trends suggest that the manufacturing sector of India is poised to reach US$ 1 trillion by 2025.

The Government of India aims to ensure the holistic development of the nation with an impetus on developing industrial corridors. These corridors would further assist in integrating, monitoring and developing a conducive environment for industrial development thereby making India a vital component of the global manufacturing supply chain.

Revolutionize-Retail-with-Self-Checkout-Kiosk

Revolutionize Your Retail Space with Self Checkout Kiosk

Over the last few years, the retail sector has transitioned from a product-centric business to a customer-focused industry. This means that customer experience has become the priority for many retailers. Across the world, organized retailers are focussing on creating a seamless, omnichannel shopping experience for their customers.

Research conducted by WBR proves that almost 80% of retailers believe that self checkout kiosks are crucial to enhance customer experiences. As a result, interactive digital kiosks, ranging from self-checkout terminals to interactive wayfinding devices, are increasingly becoming a part of brick and mortar store layouts.

Interactive self checkout solutions enhance in-person shopping by reducing the waiting time substantially, offering additional insights, optimizing time and employee efforts, and blending in the whole e-commerce experience within the store.

Not only do self checkout terminals greatly improve on time efficiency, they also allow for hyper personalised targeting to be carried out at a store level, while ensuring the sanctity of the overall brand.

Reduced Waiting Time

Checkout counters are usually bottlenecks in any retail environment. With the permeation of self service technology in the retail landscape, shoppers are increasingly preferring to go to stores that have automated checkout terminals. Self checkout terminals have been seen to significantly reduce waiting lines, leading to a better customer experience, eventually culminating in better sales.

Additional insight into the brands and products

Since we all know that brick-and-mortar retailers have limited space to display all of their inventories, interactive digital signage terminals can improve the retailers' in-store offerings by displaying products that may not be currently available on the stores’ racks. By creating a hybridized physical and digital shopping experience, retailers can maintain lower inventory quantities and more in-store product variety. Further, it can offer a unique opportunity to identify consumer needs and provide a highly customized experience as per each customer's behavior and past purchasing patterns.

E-commerce blended with an in-store experience

Retailers are now going the extra mile and putting in efforts to find interactive ways to engage with their customers and improve the in-store purchase experience. Creating a hybrid shopping experience-- one through which the physical store experience can integrate with that available online-- has become the focal point of many new retail strategies. A self-service kiosk turns customers into users enabling them to express their personal preferences and selections in a similar way they do online.

Providing a highly interactive and comfortable digital shopping experience in a physical store is often considered critical for success. As per the recent survey conducted by SOTI, it was surprisingly discovered that more than 60% of buyers preferred self-service platforms when procuring essentials. Theoretically, retail shopping can only be made more efficient and successful by using interactive tools, real-time data and integrated devices to deliver a hyper personalised experience to customers.

Why Endless Aisle?

Digital or endless aisles have been an effective way to reduce lost sales by offering a much broader product selection as compared to the physical display. Sometimes when an item or product is unavailable in the store, you can still make a purchase and have the product shipped directly to your address, or can get it collected from a nearby store. Self Service Terminals that are integrated with the online store thereby bring in the power and flexibility of e-commerce into brick and mortar ones.

These days beautiful and attention-grabbing interactive touch screens form a key component of store layouts. They have made it easier for customers to make online purchases, read product reviews, or locate an item in the store.

Some of the features of interactive terminals in the retail landscape include:

  • Real-time analytics, data monitoring, and CMS.
  • Motion or face detector to attract customers.
  • Check information such as product reviews or feedback with barcode scanners.
  • Integrate call to action with idle screens.
  • Easy checkout options.
  • Wayfinding: turn by turn directions to specific locations within the store as per the product or category.

The primary goal of creating a hybridized digital and physical shopping experience is to:

  • Prevent lost revenue due to the unavailability of a product that the customer is looking for.
  • Provide a delightful shopping experience with an innovative touch by creating brand awareness and building brand loyalty.
  • Materialize in-store visits to strengthen online relationships.
  • Procure more information about the demographics and customers' intent in the store by capturing data such as users' age and gender to provide a better experience.

Future of digital signage

Digital signage solutions can easily augment the in-store customer journey by adding value to customer experiences beyond the original intent to purchase. Now, even new and upcoming retailers can access next-gen technologies to entice customers, entertain them, and add value to how they search for and select products. But as with all new investments, retailers of all sizes need a robust content and delivery strategy to create more engaging, and loyalty-generating experiences in their physical stores.

Passenger-Automation-by-Kiosks

Passenger Automation Revolutionizes Aviation Industry

The pandemic has heightened awareness, increased hygiene concerns, and broadly prioritized healthcare protocols. Resultingly, airports, and the aviation industry as a whole, now need to maneuver through this global crisis and come up with holistic solutions to understand the new requirements of passengers and fulfill them effectively.

The concept of contactless travel has gained traction to adhere to COVID related restrictions and health concerns. A combination of advanced and innovative technologies including biometric verification, facial recognition and touchless body temperature detection kiosks are now springing up at terminals all over the world. These devices are crucial to create airports that deliver a safe and comfortable passenger experience as a part of the new normal. Further, significant transformation to the overall travel experience is being fostered with the help of data and its analysis in real time.

Challenges at the airport

Lockdowns, travel bans, and controlled quarantine measures continue to impede the recovery of the travel industry. Airport capacities were not designed to adapt to COVID protocols and social distancing regulations. The insufficiency of staff at screening checkpoints, security counters, and baggage handling has, in many a cases, slowed passenger throughput. Queues can seriously hamper social distancing protocols and lead to potential health risks. Further, Inconsistencies in flight schedules due to country-specific restrictions have also led to delays at airports. Overcoming these challenges requires operational flexibility, smooth collaboration, and technological readiness.

Redefining the air travel experience with innovation

Contactless technologies have become crucial in supporting the recovery of airports. Digitalization and touchless technologies have accelerated the efficiency of airport management at various passenger touchpoints, enabling the conversion of several manual processes to turn human free.

Physically, many airports are now using a multi-layered approach to minimize the risk of COVID-19 transmission. With the help of diligent cleaning systems and advanced ventilation devices, health standards for post-pandemic travel are strictly being maintained. To further reduce any risk of transmission, passenger services are being delivered through the self service channel. Self-service Kiosks and automated boarding gates at airports ensure smooth and contactless movement.

New age travel experience

Contactless technology remove the need for manual data inputting. Even though sanitization measures are implemented at various airports, contactless systems specifically, do not need constant monitoring owing to the lack of direct contact.

User-friendly mobile applications assist airport visitors in navigating the premises of the terminal. Many airlines are now switching towards mobile apps to communicate flight details, alerts, baggage information and status reports with customers. These customizable apps can be used at airports to inform, track, and alert visitors about social distancing measures as well.

Passenger time optimization

Digital identification, such as biometric verification, have become an inevitable part of the new travel norm to get rid of manually-intensive operations. With the help of facial identification, you could go straight through the boarding gate, allowing time optimization, eliminating long waiting time at various checkpoints.

With the introduction of biometric based processes at airports, passengers can take advantage of fast-track services. A recent example of this is at Dubai Internationa Airport, where a biometric system was implemented that uses AI technology. Biometric enabled smart gates allow for an enhanced passenger experience, and provide a completely contactless experience.

Smart baggage kiosks

Self-service bag drop or SSBD can be defined as an automated technology designed to provide complete control to the passenger at the point of check in. This terminal reduces queuing and check-in time, enabling a safe and secure journey. Its user-friendly interface allows passengers to print their bag tags, boarding passes, and drop-off baggage. Smart terminals provide substantial benefits to travelers and airport management staff. They allow for:

  • A comfortable travel experience.
  • A smaller manual workforce.
  • Time optimization.
  • Convenient check-in.

With the steady increase in passenger throughput each year, the need for space optimization is a priority.

Enhanced lounge experience

With its ability to convert data into usable intelligence, the use of AI has been quite significant to improvise operations and thereby the overall passenger experience. Self-service automated stations and sanitizing robots at airport lounges enable a contactless experience. Passengers can now also order meals by grabbing a meal device with a QR code, eliminating the need for any human interaction. Touchless technologies can also create a premium, tailored experience for travelers looking for comfort. Many concepts, several of which combine innovative technology, are now being configured across airport lounges to foster a safe and comfortable passenger experience.

Smart airports with contactless technology

The pandemic and its effects have plummeted the confidence of travelers. Technical advancements have played a crucial role in restoring assurance and lifting off some pressure. Despite providing a safe travel experience, these innovations sometimes raise doubts about privacy protection and personal data security. Many stakeholders in the travel industry are finding ways to address these challenges, whilst simultaneously investing in newer, innovative platforms to enable better customer service.

The implementation of cloud-based technology has provided a breakthrough in creating touchless experience. Further investments in cutting-edge technologies at airports can go onto promote sustainability and efficiency, potentially mitigating future disruptions.

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